Precious metals have been a solid hedge against a declining U.S. dollar. The value of the U.S. Dollar declined more than 30% from 2001 through 2004, plunging 5% in just a few weeks. For a long list of reasons, including massive increases in U.S. government deficits totaling trillions of dollars, the cost of a prolonged war against terrorism and a massive trade imbalance, this trend may be just the beginning. This means U.S. Dollars could now be worth less and less every day.
Precious metals have been a proven safe-haven in times of war, political strife and uncertainty today's financial markets are increasingly at risk from terrorism, political instability and war. As we saw so after the 9/11 tragedy, financial markets can be closed down, and remain closed down, for extended periods of time. As terrorism incidents continue to increase around the world, it is not unreasonable to expect further (and potentially more severe) disruptions in financial markets, banking and commerce in the future. Whenever and wherever tension or hostilities break out, people everywhere quite naturally gravitate toward the assets they trust most.
Precious metals can offer outstanding price appreciation and profit potential
After reaching a high in late 2007, the stock market "bubble" burst in 2008 and wiped out trillions of dollars of investor equity. The major stock indices have since failed to return to their previous highs. Gold and silver prices, on the other hand, have increased dramatically—more than doubled, in fact—during that same time period. Which means precious metals can produce impressive investment returns even when (and sometimes, especially when) returns from stock, bond and other paper investments decline in value or evaporate completely.
Reasons To Own
Economic global uncertainty
Hedge against inflation
Peace Of Mind
From the dawn of civilization, gold's beauty and luster have produced a rare mythical quality unmatched by any other metal. One of the earliest and most valued metals known to man. For centuries men everywhere have dreamed of finding gold. Men have mined it, bartered with it, and even died for it since the beginnings of civilization. These facts are not so surprising when you consider its rarity, durability and unusual properties. Today gold has thousands of uses. It can be found in everything from calculators to space craft, jewelry and much more. It is virtually indestructible, resists corrosion, blocks 98% of radioactivity and conducts electricity. Its uses are almost endless and have just begun to be tapped.
Today some 90% of the world's gold is found in only four countries: South Africa, the former Soviet Union, the United States and Canada. South Africa has dominated world gold production and accounts for about 50% of the total world supply. The former Soviet Union accounts for 32%, the United States for 6%, and Canada for 3%. The rest of the world combined produces about 9%. The total yield, however, has been incredibly small. Unlike other such commodities, because of hoarding and stockpiling, each year's production is a very small part of the available supply. An estimated 2/3 of all the gold on earth has already been mined. Only about 88,000 tons have been extracted from the earth in all of recorded history. All of this could be formed into one cube 18 yards high. It is this scarcity, along with gold's beauty, durability, and compactness, that has made gold the ideal standard and store of value.
World Wide Liquidity
Perhaps the most amazing feature of gold is its stability as a standard of real value. Although its value may fluctuate, history proves its buying power tends to remain the same. Gold has been the most coveted metal in the world and the single most trusted international medium of exchange for thousands of years. Trade between countries frequently is based on gold value as the most reliable currency. While paper currencies have been devalued, eroded by inflation, and become virtually worthless, gold has maintained its purchasing power. Gold has been the established monetary standard for centuries. During times of inflation, people have turned to gold for profit and protection. Gold, unlike paper currencies or other commodities, has retained its value during both crisis and calm periods throughout the history of civilization.
Proven Hedge Against Inflation
The primary factors influencing gold prices are anticipated inflation caused by huge U.S. deficits and the diminishing power of world currencies. As people lose confidence in a government's ability to control inflationary pressures, they turn to gold. While gold prices may fluctuate from day to day in world markets, the long-term demand for this timeless treasure can be expected to continue. The current gold market conditions offer profitable opportunities; take advantage of these opportunities and own gold today.
Reasons to Own
The price of Gold dropped 7% in 2015 and is down 42% from it's All Time High in 2011 of $1,900/oz. We are in the EARLY STAGES OF A NEW BULL MARKET WITH PRICE TARGETS OF $2,500 per OUNCE
Very Low Risk when buying Gold at/around it's 6 year low of $1,050. Mining Costs of Production are approx. $1,100/oz for Top-Level mines, which is close to today's spot price
Gold performs EXCELLENT in Presidential Elections years, especially so if there is a lot of uncertainty
Low Risk vs GREAT Reward, Protects Wealth, Excellent Hedge, Discreet to Sell, Discreet to Transfer or Inherit, Long-term & short-term strategy
An impending Stock Market correction will greatly benefit the price of Gold. For the past 100 years, the relationship between the two have been very consistent. When the Dow peaks, Gold bottoms. However, when the Dow falls, Gold has proved to reach All-Time high during the last two 'corrections' (2000 & 2008)
Worldwide economic uncertainty due to the collapse of the Chinese stock market and the Yuan, the crash in the value of the Euro, and the printing of paper currencies through 'monetary policy' (devaluing the currency). Price of Oil crashing to under $30/barrel. Commodity index 13 year lows.
Federal Reserve raised Interest Rates for the first time in almost a decade. Gold is the Best Performing asset in times of 'Rising' interest rates as people sell out of risky equities & bonds. The current 'Credit Bubble' will be worse than the 'Housing Bubble' of 2008.
Enormous emerging market physical demand from Central Banks. China, India, and Russia are the 3 largest consumers of Gold. China recently reported a 4-fold increase in their holdings in 2015 alone.
GEO POLITICAL RISKS – Worldwide War vs ISIS, War in the Mid East, Russia vs Turkey, Saudi Arabia vs Iran.......etc...
Throughout history, many different things have been used as a form of money; such as stones, salt, shells and beads. From the very beginning, silver and gold have displaced all other mediums of exchange. The invention of the printing press brought with it paper currency. No government has ever successfully substituted paper for real money, because no government can print silver. Normally, silver prices are anticipatory rather than reactionary. Once the forces of the inflation index begin to be felt, investors will buy into the market to make sure they are in position before the general public. Their buying will drive prices upward.
Reasons To Own:
Supply vs Demand
Silver price is at/close to a 6 year low at $14/oz (High: $49/oz in 2011)
Mining Costs of Production are approx. $18-22/oz for Top-Level mines, which is currently above today's spot price
Mining deficit for the past 9 years
Gold to Silver RATIO close to 80 to 1, historically it's 50 to 1......(Silver at $22!)
Industrial Demand growing at a record pace (Solar panels 75% increase YOY)
Investor Demand is soaring! US Mint & Royal Canadian Mint have doubled in sales this month after record-breaking years in 2015.
Short Term OUTLOOK
Top analysts for Goldman, HSBC forecast the price of Silver $18-$22 end of 2016. Silver price at $22 is a 58% Profit, price at $49 is a 350% Profit
JP Morgan & Goldman Sachs buying records amount of Physical Metal at these levels
Seasonal Demand the next 4-6 months will support the price move upwards. Wedding season/India, Bulk Purchases for Industrial Purchases
Long Term OUTLOOK
All-time high is 2011 was $49/oz , which would result in a 350% price increase from today's price (approx. $14/oz)