Investing Frenzy is silver and gold

In the long run gold and silver will do very well that investment is expanding impending doom in the world economy. The price of gold and silver, to appreciate faster than inflation erodes the value of other asset classes, much faster. How to realize the middle classes in developed countries, what happens in their purchasing power and savings for retirement, there will be a gold rush. It will be a buying frenzy, the man goes for gold and passengers of the Titanic was for a place in a lifeboat. And just as there are not enough lifeboats for everyone on the "unsinkable" Titanic, there is enough gold for all.

After the Titanic hit the iceberg, there was no way to save him. In the budget debate of 2011, Congress has no obligation to reduce, or even the PAC, the rise in public debt. The U.S. economy is doomed to sink. And take the rest of the world economy.

U.S. gross domestic product (GDP) is 23% of global GDP, while the U.S. population is about 5% of the population. Where the interests of the spiral of debt on the hope of the payment obligation is U.S. Treasury bonds no longer so sure it for decades. It's time to buy gold Soon we reach the level of frenzy and the price of gold began to blow bubbles. Continue to be inflated for years. Do not believe those who are already in the price of gold will be a bubble, or that every new high the peak is, you never get to say in your life. Consider how much time the Internet bubble or the housing bubble.

The money will be faster than public opinion to react. And the money will go for gold, no money, because at current prices, only $ 9000000000 in physical gold on the floor. Not close enough for all the tens of thousands of millions of people seeking refuge from inflation and falling markets, to protect. There are only about 40 million dollars in physical silver yet. It is less than half of 1% of the value of gold. And there will be enough gold for all. Only 2 billion to buy with the money, the price of silver through the roof would send.

Because many people think of money, such as industrial metal, the price of silver is vulnerable to a withdrawal, it is clear that the world economy will fall above the level of the recession and spiraling into a deep depression, deeper than the Great Depression of the 1930s years. But in the long run, the money is not better than gold. If you put the buying frenzy for gold in many it is expensive on the market because they have been overheated in the real estate markets in the early stages of bubbles. Just as people could not save fast enough to pay the face of rising real estate prices are not able to save quickly enough to buy an ounce of gold. Many opt for the money, a few grams at a time, before the price continues to rise.

When choosing an ounce of gold for $ 3000 or more ounces of silver from $ 100 to $ 150 per ounce, the choice is easy. $ 150 --- So begins the madness of money, and the price bubble begins to inflate the prices.

However, silver has many industrial applications, for which there is no substitute. If millions of people worldwide are hoarding money, start physics, physical shortages are acute. Industrial users, to survive the crisis must have money to produce their products. I think, increase the frenzy of money, a percentage, by far the gold buying frenzy that precedes it.

Tax on Silver But Not Gold?

I've often wondered why there is a tax on the money is tax free in England, but gold. The tax is currently 15%, but after New Year is around 17% for some people to put investment in silver bullion and therefore prefer to invest in gold bullion. The main reason why there is no VAT is that it uses an industrial metal and used by a variety of industries, while gold is only of limited use, because the costs. Unless you have the money for the long term, then it is better to buy silver in Britain rather than abroad, because the United States or Canada, for example, this is because customs and shipping.

Buy UK

First, there are many silver bullion dealer in the UK. You can in the form of silver coins and gold bars on eBay, where individuals and business in general, trade, the problem here is that the premiums can be high and if you want to buy silver buy for investment or the value of the assets to obtain, is required in order to get money with the lowest premium. This does not mean you can not good deals on eBay as possible.

Old ...

An inexpensive way to go is to buy silver to buy old pieces of silver, when British, European or North American does not really matter, because the premiums are very low in them, with some knowledge can easily find and buy different types of sterling silver coins from the early 1920s before British.925 the debased silver coin of 1920 British silver by 50% (from 1947, silver is removed from the British currency). A good place to start is to make the coin, that there is no VAT on this kind of money.

How much gold and oil?

The basic relationship between the amount of gold and the dollar's value is well known and understood, and like every other economic indicator, there are times when the relationship strong and weak periods.

But what about oil? Is there a connection between the real and tangible products to the dollars, a fiat currency in the paper?

Gold / Oil

The price of oil is closely related to the political situation in the Middle East, integrated, while the movements is the amount of gold by central banks and other factors will affect. However, a study of these critical resources, an interesting read.

If a graph of the measured movements in the price of gold and oil, a direct relationship between the two would result in a line of constant value. Even if price movements are not proportional to each other, the line will remain linear, but may rise or fall.

Gold Oil Ratio = price of gold (ounce). / Crude oil price (per barrel)

If you draw the graph gives the equation above shows a long-term trend that shows the relationship between spending a high of 30 and a minimum of 10, with most of the time in the community.

This indicates a strong relationship between the price of gold and oil, but it does suggest that in general the rise and fall of the two together in the long run. Interestingly, were after 9 / 11, the two always together and divergence in the relationship is less volatile.

With the ratio of gold / oil

This ratio gold / oil may be useful in technical analysis to determine when the relationship is on the line and assume price movement trends. For example, the indicator stood at 30, you know that gold is overvalued or undervalued, and that oil markets are willing to take action.

Finally, it should be noted that oil and gold products, which are of great importance in the global economy and remain always respond to events that affect the whole world. This does not, then, that moves the oil is worth more than the gold or the amount of gold depends on oil. Both are simply reacting to how the common geo-political conditions and market conditions.

Money is a better investment than gold?

Precious metals like gold and silver are generally recognized as a good investment. Purchase of precious metals is a good way, an investment portfolio and a range up to a certain extent to diversify against the effect considered. Precious metals are particularly able to withstand the pressure of inflation, the war and other economic fluctuations often devalue other investments.

Buying precious metals is a way to preserve its financial resources and protection against economic downturns. Markets most commonly traded precious metals, silver the greatest benefit for the average investor and will be regarded by many as the safest investment.

The growth of silver and gold

In the meantime, metals have led to a growth in the precious metals bull market, silver has always shown the greatest percentage increases in these times. For example, 1971-1981, while the dollar fell and after the money has increased in value by nearly 5-fold. It was not uncommon to see in the bubble market of precious metals, metals, triple or quadruple in value, while gold has doubled.

One reason for the constant percentage of the profits of the money in gold is that silver has more industrial applications than gold, more money in the development of industrial applications all the time. The money is already used in soldering and welding catalysts for chemical reactions, industrial bearings, batteries, electronics and other critical purposes. There are also a number of new medical applications for money and uses of solar energy, water treatment, protective coatings and more. All this adds to the long-standing traditional use of money in photography, coins, jewelry, silverware and much more.

The use of money

Not just money for industrial use on the rise, there is enough money to meet current requirements. Despite the higher extraction recovery of money and money-and-recovery efforts, the industrial demand has exceeded the production of money over 20 years. As with any other, because the demand for money is to exceed the available supply, the price of money will grow.

Since the 1990s, when the production and utilization of the money back into the industrial demand, the supply of money on the ground began - money in circulation or in private hands - has fallen consistently. In Zurich and London, believes that the money supply by about 350 million ounces in 1991 reduced to about 50 million ounces today. COMEX silver fell by about 260 million ounces in 1995 to 100 million ounces. The governments of the world have very little stock of money, never again, and it is a generally acknowledged fact that the weight of gold in the largest banks in the world is included, far exceeds the amount of money over the existing soil.

Continues to decline, while the amount of money promised nothing good for the industry in general is good news for investors in applications metals.With money is precious beyond what is readily available in production, the money will almost certainly continue to value more quickly than to win gold or other precious metals. While there are important industrial applications, the demands money into growth and are in limited supply should remain a good investment for the money.

What's the Gold Market Like????

The gold market is unique in the world of finance, because gold is unique. Much more than an investment, gold is an asset in itself, a commodity, a natural resource and a trusted store of value and medium of exchange.

Gold plays several roles in more lives than any other commodity, except water and possibly oil.

Various gold and has a large public service means that the gold market is unlike any other market.
Gold reacts differently to economic and geopolitical factors affecting the financial markets.

For example, the hyper-inflation, which historically has been terrible for stocks and bonds, they encouraged people to seek refuge in gold and gold is always looking to increase value in times of high inflation.

The same applies on other factors:
Geopolitical crises such as war or threat of terrorist attacks suddenly, usually in an increase in the price of gold. After 11 September 2001, U.S. stock exchanges suspended for a week, but rose and gold worth more for the entire period of trading.

Currency crises in Mexico in 1995, Asia happened between 1997 and 1998 Russia disturb the local securities markets dramatically. But in each case the value of gold is compared to local currencies.

Banking crises, as has happened in the United States in November 2008 also tend to be very bad news for the stock markets. In the meantime, gold retains its value for people looking for safe havens.

In short, the kind of factors that tend to the value of stocks, bonds and other assets affected do tend to increase the value of gold. Of course there are exceptions, but in the long run, this axiom has remained true. Zig Zag gold when the paper.

There are some other interesting aspects of the gold market, which also distinguish it from other markets.

For example, there are more opportunities to own gold than any other asset class. You can even physical gold ingots, wafers and coins such as American Eagle, Canadian Maple Leaf or South African Krugerrands. You can own physical gold in the form of gold coins rare.
For those who received no additional security of physical gold, there are also other indirect methods to own gold.
Some people choose, not in the gold market by the holders of shares of mining companies and / or participate refine the gold. Also buy some mutual funds, the shares of those companies an alternative to diversification can be added.

Gold buyers should be aware, however, this method does not duplicate the direct involvement of gold.

There are other ways of owning gold.

One of the last is the "Exchange Traded Fund" or ETF. This type of fund to invest in physical gold, and then turn around and sell shares an undivided interest in the assets of the Fund. In this way, investors in the development of prices of gold can again participate, but without the physical security of the gold property.

A much by participating in the gold market are futures markets, which take individuals to positions on the market with a lever in order to participate in increases and decreases in the price of gold, followed.

This is not the end, what separates the gold market:

Gold is a market that never sleeps. Gold operations around the world, 24 hours a day, 7 days a week throughout the year. No matter how late it is open somewhere in the gold market and gold trading. Therefore, gold closed at a price in New York at the end of the day and open at a different price the next morning because of the effect on the stock exchanges in cities like London, Paris, Zurich, Dubai, Mumbai, Hong Kong, Tokyo and Sydney. No other product is marketed, or much broader and more active than gold.