Gold & Silver Price Fall = Buying Opportunity

Precious metal bulls with strong stomachs for wild market swings should NOT be concerned; these swings are intentional for Bullion Banks to make the most profit!  Just think for a minute, if you had the influence to depress a commodity ‘at will’ and then inflate those prices when you saw fit, when would you do most of your buying and selling of that commodity? This is called market manipulation.

Silver has fallen from a $50 high in 2011, to an astonishing low of less than $17 O/z, in a market where demand has been continuously rising for the past 10 years culminating in a record 250 Million Oz (Moz) in 2012.  You don’t have to be John Maynard Keynes to understand the rules for supply and demand; (but just in case you didn’t know) when demand shifts higher, price is higher, when demand is low, prices are low, illustrated beautifully in this ‘Supply and Demand Curve Chart’.

http://www.owen.org/blog/2757

But why should I invest in Gold & Silver?

Recent Silver price falls are being monitored daily, and analysts have had a fair idea of these lows for some time; Silver right now is sitting on a strong ‘Fibonacci Support’ level (technical term used by technical traders).  Interestingly, this is the same level that Silver was at immediately prior to its 300% rally up to $50!

In an extract from www.arabianmoney.com (and they know) ‘Those with an eye for the next big speculation will undoubtedly now be looking at Silver…. There are other reasons to believe in Gold as a safe haven asset in another major global financial crisis led this time by China and Japan.  Silver is always leveraged to the Gold price so speculators might want to get in now rather than wait for the storm… why would [wait] any longer to make the shift to Silver?

When it goes public, the price goes parabolic!

Regular readers to Mokarimakka know all to well that I have said once this information becomes generally accepted by the public, demand will outstrip supply multiple times over.  My assertion has not changed;  indeed there is further evidence that supports my previous posts that the general public are being ever more exposed to an alternative commodity for which to invest their currency and protect their wealth.

The Royal Mint is now selling Bullion Gold direct to the public, a massive shift in its modus operandi.

Although this article is written by a short sighted pessimist, (who uses an example of if you invested £10’000 in 2011, then you would only have £6’440 left today, as his case study) I would like to offer an alternate example using the same data sample chosen by this journalist and say, ‘with more credibility’ -

If you invested £10’000 at the beginning of the market crash…. (Which is precisely when you would choose to invest in metals, and not during a market recovery, simpleton!) based on actual exchange

GBP/USD exchange rate – 1.9

£10’000 = $19’000

= 27.14 Oz of Gold

At the highs of 2011 that our Daily Mail journalist uses your original £10’000 would be worth : c£31’265 not bad!  (Gold price £1152 or $1883)

And just as a belt and braces approach, what would that be worth today?

GBP/USD exchange rate – 1.6

£10’000 = $16’000

Your original £10’000 would be worth : c£20’355 still not bad! (Gold price £750 or $1200)

I will not embarrass any retail bank and ask them what amount of interest would have been generated over the same period if a customer invested £10’000, ill allow all of my readers to make that calculation themselves.

So thanks daily mail journalist, and please don’t bother in future!

Investors, precious metal is a long term investment, don’t be influenced by short term swings, pick your moments for entry and exit.

It wasn’t raining when Noah build the Ark.

Mokarimakka