At this time of year many people cast about the adverts in magazines, TV, radio and the internet looking for that slightly original, worthwhile and most importantly thoughtful Christmas gift.

Not for them the run-of-the-mill presents like X-Boxes, underwear, socks and handkerchiefs that everyone else settles for. Well, have you considered a small amount of a precious metal as a gift?

At the moment, as if you haven't noticed, the world economy is in a bit of a turmoil. The governments, banks and businesses would prefer that all available income is spent on consumer items to drag the world out of recession. That's it, buy all those foreign manufactured plastic and electrical goods, get the money circulating. More goods, more money through the banks and more tax.

But while you are doing that the clever money like central banks, hedge funds and countries like Russia and China are quietly stocking up on gold and other precious metals.

And you can see why if you look at these two 5 year charts of gold and silver.

5yrgold05-12-10


5yrsilver05-12-10

No wonder there are all those companies out there trying to get you to bung your bling in an envelope and send it to them in return for a pittance!

Also consider when looking at these charts that the normal ration of price between gold and silver is 16:1.

With people going into gold and pushing the price up it seems that silver is lagging a long way behind. Especially as silver is in proportion in shorter supply due to its greater industrial applications.

It has also been said that just like the concept of 'peak oil', 'peak gold' will be reached in 2024, but 'peak silver' will be reached earlier in 2017.

Overall metals are becoming popular, even copper has now caught the eye of JP Morgan as it tries to corner the market before an economic recovery takes the price up.

So when considering that thoughtful and worthwhile gift this tear take a look at a small amount of a precious metal whether in the form of coin or jewellery. You could make someone very happy.

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