Friday, April 26, 2013

Smart Money Says: Buy Silver And Gold

While reading the Market Oracle I recently he learned that there was a high level of trading activity with a very high level of volume which are the typical signals that smart money buyers leave in their tracks after they've done a lot of buying and selling. On a lot of levels, this frankly didn't make any sense, so silver and gold buyers really didn't know what to think except that perhaps the markets are fixed which would ultimately make your investments higher risk and lend a distinct advantage to those planning to buy gold and silver.

The Oracle pointed out that one bright spot might be that the central banks cannot manage everything. As we watch large countries that are dominant like China Russia and India, as well as small countries turn away from the US dollar, it's unclear what the ultimate result will be. It's also interesting to note that the silver market can be managed and controlled much more quickly and easily in many ways than the gold market ever could be.

This is a great time for buying gold and silver. This is a point that's widely agreed upon by most precious metals analysts. In resource investor, Eric Sprott talks about investors who were buying 50 times more silver than they were gold. There are many reasons for this. One is simple math. Each year 8,000,000 ounces of gold are produced in normal mining when you add that with another 50,000,000 ounces of gold that is recycled each year, it all adds up to 130 million ounces that are available on an annual basis. If you compare that to the amount of silver which can be produced or mined in a single year, there’s no contest.  http://bullionsupermarket.com/Market/News

Using this data, there's roughly 8 times more silver available to buy than there is gold. However, not all gold and silver is available for investors.

Whether you choose to invest in gold or silver is up to you; either way, the situation looks bright for precious metals since the other markets continue to be riddled by volatility for the foreseeable future.

No comments :

Post a Comment