Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Is This Your Last Chance to Buy Precious Metals Cheaply?

Commodities / Gold & Silver 2009 Dec 02, 2009 - 01:07 PM GMT

By: Dr_Jeff_Lewis

Commodities

Best Financial Markets Analysis ArticleLong-term investors and analysts alike are siding with precious metals, virtually exclaiming that a surge in precious metal prices is in the future.  These investors are finding that today's high inflation, excessive government bailouts, and incredibly low interest rates are a perfect mix for higher silver prices.


Leading Voices

Two notable names have been driving home the necessity of ownership of gold and silver for ages.  The first is famed investor Jim Rogers, who has indicated that he expects a full 20 year bull market in the price of precious metals and commodities as a whole. 

On the other side of the spectrum, Peter Schiff, the President of EuroPacific, has advocated physical ownership of gold and silver to protect against inflation and government spending.

Fact Checking

Peter Schiff's criticism that gold and silver will continue to rise as government inflates currency is accurate, while Jim Roger's call for a 20 year bull run in gold seems lofty at first glance. 

However, after analyzing the price of gold and other commodities, Jim Roger's investment ideology does carry weight.  Unlike Schiff, Roger's viewpoint of gold as an investment comes from its rarity and its necessity as an industrial metal, rather than its utility as an investment hedge. 

Shortages of commodities are already appearing with a variety of commodities. Oil, gold and silver production has peaked, while usage continues to grow.  In fact, iron ore is becoming more difficult and expensive to mine, and the growth of the emerging markets is bringing more than 2 billion people into the “consumer class,” further fueling future demand. 

Timing the Market

Gold and silver are already seven years into what has been projected to be a 20-year bull market by Jim Rogers.  In this timeframe, gold and silver have each exploded by more than 300%, but the historical prices for gold and silver are still well below the inflation-adjusted average. 

If gold were to reach the same inflation adjusted high of the 1980s, Rogers contends that the precious metal would be worth more than $2000 today, giving it 100% upside.  Silver, on the other hand, still trades 70% lower than its all time high and offers investors a greater upside potential.

Now or Never

Both inflation and the use of industrial metals are a constant in our lives.  After all, governments will consistently inflate their currency, and gold and silver will perpetually be used for electrical applications. 

One factor that is not a constant, however, is the supply of precious metals, which has been decreasing since they were first discovered.  It is without question that five, 10 and 15 years from now, gold and silver will have both retained and even grown their purchasing power – which means they will be priced significantly higher than they are today.  With all the data suggesting gold and silver prices are poised to grow higher, there is no better time to buy physical metals to both grow and protect your wealth. 

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2009 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules