Why gold (and silver) have a long way to go presumably

[jim4silver]

I saw this article and wanted to post it. Counters the argument that gold (and should apply to silver as well) is in a bubble that is about to burst. Look at the amount of $$$ invested in gold now as opposed to in the past times where there was a bubble.

http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=106984&sn=Detail&pid=102055


Jim

 

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[Rich Hartford]

Jim,
Either this article is a bad translation from German to English or I'm going senile .
What is it that they are trying to say about the future of PM's?
HH
Rich

 

[jim4silver]

Jim,
Either this article is a bad translation from German to English or I'm going senile .
What is it that they are trying to say about the future of PM's?
HH
Rich

In a nutshell, they are saying that the total amount of global financial assets invested in gold, gold stocks and gold etfs was only .8% in 2009 (or less than 1 percent of all global financial assets). Back in past markets when there was a bubble in gold (around when it dropped dramatically) there was a much higher percentage of global financial assets in gold (20%+) as is demonstrated in the first chart.

Basically the author is saying that since such a small amount of total global assets are invested in all the different gold assets right now, it is not possible to be in a bubble. If more people and institutions were into gold now, then maybe it could be a bubble. But basically it is going to take a lot more $$$$ and investors to be into gold before it could even be considered a bubble situation.

That is at least what I got from reading the article. Thus, the article would be a positive for PM future prices if what is says is accurate. Since I am a gold and silver bug I am biased. There may be a correction here and there, but within 5 years silver and gold will be at levels many would not believe right not (at least in my opinion), much like in 2001 many would not have believed we would be at
$1250+ right now in gold.

Jim

 

[JD-GA]

Doesnt mean gold and silver isnt a good investment. More so that paper that says you own gold and silver may be. If the dollar dies physical gold and silver will still get you a lot further.

 

[timbobwey]

So Jim, you are saying in 5 years gold and silver should increase a lot?

 

[jim4silver]

So Jim, you are saying in 5 years gold and silver should increase a lot?

Yes.

That is my biased, unprofessional opinion. I may be wrong, but I am betting big on gold and silver. Of course there will be a time to SELL, but I don't see that anytime soon. I used to be just bullish, but once the problems started showing in the Euro, I became superbullish, if that is a word. There will be some corrections along the way I am sure, but those are good times to add to your stash. Gold and silver have had value for hundreds and maybe thousands of years. I don't see why that will change now.

Jim

 

[timbobwey]

I agree, I think at some point there will be a higher demand for silver and that the value will increase. I guess it does all depend on the market, and how much silver is out there. I have read a lot of articles about how the U.S. doesn't have much left. I guess we will see what the future brings.

 

[jim4silver]

I agree, I think at some point there will be a higher demand for silver and that the value will increase. I guess it does all depend on the market, and how much silver is out there. I have read a lot of articles about how the U.S. doesn't have much left. I guess we will see what the future brings.

I am torn between which is better, gold or silver, so I own roughly equal amounts of both value-wise. I like to think I am diversified even though roughly all my investment $$$$ are in gold and silver. When/if it gets to the point that the person bagging your groceries is talking about buying gold/silver and you are hearing about it on daytime talk shows (not the financial shows), then you might want to consider selling.

If the stats in the article are true, we are nowhere near that point in that they claim that in 2009, less than 1% of global $$$$ was invested in gold, in contrast to times in the past when it was time to get out, in which there was 20% or more global $$$$$ invested in gold. If the stats in that article are correct, then the party is just getting started so to speak.

From what I have been reading in the news, it seems that more "stimulus" $$$$$ is gonna be created and spent in the near future, such as expanding the amount of people who can receive the 99 weeks of unemployment benefits. If that and possibly other such programs happen it can only help PMs down the road.

Jim