Gold

The Value of Gold

  

Where will the attention shift once the USD starts losing it's attractiveness?


You guessed it:


Stagnant supply favors a sustained bull market in gold.


Global mined production has not increased in a decade -- and has actually declined outright in five of the past eight years. 


Furthermore, almost all the gold that's easy to dig up -- and therefore cheaper to get at -- has already been unearthed. Gold companies in South Africa have to drill as much as 2.3 miles to get to new deposits. Meanwhile, all Federal Reserve Chairman Ben Bernanke has to do to create currency "is press a button". 


What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years. 


It is not the liability of any government.

 

Anxiety is gold's friend, and for that reason its future gleams bright -- 

at least until the next global financial panic scares the punters out.


Note:
This is the time of year when gold prices are supposed to be in decline - at least until demand picks up again in September for India's wedding season (India is the world's largest consumer 

of gold). 


Apart from the high use of gold in jewelry, gold is also used in dentistry, (for gold crowns) embroidery, (to make threads with), electronics, (in connectors on wires) and as a coating on satellites and astronauts' helmets.


Furthermore, gold is priced in dollars, which means that as the greenback rises, gold is supposed to fall. 


But neither of those relationships is holding up much these days.


There are several ETFs that invest in gold exploration as well as gold mining and distribution that will benefit immensely by the future increase in the price of gold - 

some are speculating that gold will be trading at over $2500 per ounce within the 

next couple of years!

Silver

The Value - and Many Uses - of Silver

Demand for Silver is built on three main pillars


Industrial and decorative uses, photography, and jewelry & silverware.  

Why is this indispensable metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. 


Silver’s unique properties restrict its substitution in most applications. 

When investing into Gold and Silver, your money is in something solid. Real objects, precious metals: here your money isn't an idea. The concept is very different: instead of putting your money into a company - an idea - you're buying gold and silver with your money - something real. 


Gold and silver cannot be 'made', as opposed to company products. This simplifies the supply and demand way of thinking, because there is a fixed supply. All that you have to worry about is the demand, and when isn't the demand for precious metals high?

Silver is used even more, in cutlery and mirrors, in medicine and as a food additive, and even to make polymers in clothes.


Below is a partial list of the many uses of the metal that plays 

a duel role: Precious metal and Industrial metal




Back in the 1980's, Silver was selling for over $35.00 per ounce - and back in 2011, it was up to $50 per ounce!


Currently, it's trading at a little under $17 per ounce, which leaves a lot of potential for a significant move to the upside!


The Gold & Silver Funds (ETFs and others) that we invest in deal in exploration, mining and distribution around the country and around the globe!

Copper

"Doctor" Copper as an Industrial Metal as well as a Major Economic Activity Indicator / Barometer

One of the most widely used industrial 


Presently, copper is used in building construction, power generation and transmission, electronic product manufacturing, and the production of industrial machinery and transportation vehicles. 


Copper wiring and plumbing are integral to the appliances, heating and cooling systems, and telecommunications links used every day in homes and businesses. Copper is an essential component in the motors, wiring, radiators, connectors, brakes, and bearings used in cars and trucks. 


The world's production (supply) and consumption (demand) of copper have increased dramatically in the past 25 years. As large developing countries (China, India, Brazil, etc.) have entered the global market, demand for mineral commodities, including copper, has increased dramatically!


Because of its importance in construction and power transmission, the impact of any copper supply disruption would be high.


When you see global copper prices falling, it's an overall indication of economic / manufacturing slowdown, hence its reputation for being a major economic activity "barometer"!


Copper ETFs have grown quite a bit in the last several years and have become much more liquid, that is, easier to buy and sell on the open market.  We have access to several very large ETFs specializing in Copper exploration, mining and global distribution.


Generally Copper prices range from $1.50 to $4.50 per pound - they're currently trading at  about $3.10 per pound.


From early 2004 to late 2005, Copper prices went from $1.00 per pound to $4.00 per pound which comes to a profit of $75,000 per contract purchased!  You can imagine having been buying on the way up - many made millions of dollars in this two year period.

 

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