Since the beginning of the economic crises in 2007, investors have been adding gold to their portfolios for a number of reasons, all of which are linked to a lack of faith in financial institutions both public and private.

Traders, investors and Joe public are all concerned with one thing and that is, where is my money safe if I wish to take profit or maintain savings in an uncertain world.

To say uncertain world is a slight understatement what with governments looking to inflate out of debt and the knock on to currency devaluation  showing no sign of abating let alone stabilising.

It is from these conditions that gold and silver mania has been born leaving little that savers and profit takers can do being caught between the potential risk from what many see as an inflated gold/silver bubble and savings devaluing through inflation.

But gold and silver have decoupled from other 'asset classes' and are now returning to their traditional and historic roles as preservers of wealth.

Put simply gold and silver are both real money.

How long will it be until the public at large automatically transfers wages or at least a portion of their wages into gold and silver?

Well many are doing this already and to greater ends than just preserving their wealth as can be seen in the Max Keiser  'Crash JP Morgan, buy silver' campaign which is gaining momentum and could see this practice of automatic transfer becoming more than a trend.

Silver and Gold coins are now being wrapped up for Christmas gifts to family from parents and grandparents to their children.

What does that say about Silver and Gold?

As far as I can see the buying mania hasn't started yet as traders who are also moving money between currencies seek stability for their conversion to a tangible form of 'money' find them selves worrying more about the conversion than the actual trades making the conversion a full time job.

Yes currencies have been traded for many years but the buck needs to end somewhere (excuse the pun).


Comment Here!

comments