Will the price of Silver go up in 2012?
First thing I want to make clear is that I do not give financial advice. This post is based on my personal views and is not meant to be taken seriously. What you read in this post is how I choose to invest if you choose to read this post do so for entertainment purposes only.
Personally I think the price of silver is way undervalued and I also think the price of Gold is ridiculous. As it stands now Gold doesn’t really do anything. It’s what I like to call a luxurious precious metal. Gold does not put Gas in your car or food on your plate, Gold is hoarded, Gold is typically dug up from the ground polished and then thrown in a safe or used as jewelry. That’s what Gold is to the world right now yet the price of Gold in December 2011 is higher than the price of Platinum.
Before we talk silver let’s talk gold
To me this makes absolutely no sense, my personal views on Gold is that the price of Gold is a reflection of people’s fears in the markets and it’s also a symbol of a slow economic recovery. That being said personally my opinion on Gold is anyone who purchases Gold as an Investment or hedge against inflation is doing so with no knowledge on how the gold markets work in fiat monetary system.
Don’t forget that if you trade in your gold for Fiat currency you will be taxed at the highest rate not only that but those same people that sold you Gold will charge you typically a 10% fee to sell them your gold. Have you ever been to a pawn shop before? Well Gold buyers are some of the most ruthless business men on the face of the earth. Before you buy gold I recommend calling a Gold seller and telling them that you have Gold to sell listen to what they tell you then.
The 2011 Gold rush is a Fool’s Gold rush!
I know many of you are eager to get in on this supposed gold rush but what most of you don’t know is that this Gold rush is created mainly on speculation just like the sub-prime mortgages we’re created on speculation. If you’re buying Gold in this day and age you do so for luxury or hoarding purposes, only rich people with tons upon tons of gold buy gold as a hedge against inflation.
If you can’t afford to purchase a lot of Gold you will not be protected against inflation in fact you will be slaughtered if you try and trade your Gold back into dollars or Euro’s. Don’t believe the hype the housing bubble crashed and the world governments have got to get people investing again, Rich people globally with a lot of Gold are manipulating people into believing Gold is the answer t their problems when in fact it’s making the financial situation worse for people.
If you buy gold and you can’t buy a ton of it you must hoard it, Gold and silver in this day and age are used as money in the event the Fiat monetary system fails. If you’re confused about how the fiat and Gold systems work consider reading about the financial struggles of the African country of Zimbabwe. Read about the collapse of their dollar and what it means to their people.
The Silver lining
I love Silver and the reason why I love silver is because silver does so much for the world and also the fact of the matter is that silver unlike is Gold is being used up. The world needs silver, silver is all around you both in luxury and industrially. If you compare silver to gold the fact still remains that in a world where energy is key to human survival silver out performs gold on so many levels.
If for a second you we’re to compare silver and Gold in the form of man, in this present age of the world Gold would be the Handsome guy that gets by on his good looks and charm people love looking at this golden man which allows him to live an easy carefree life, as long as nothing serious happens this golden man will be loved by many. The Silver man on the other hand is average looking but a very hard worker everybody needs this silver guy but nobody really notices him because he blends in so nicely, when times get tough the silver man gets all the love and attention because the silver male is almost everywhere this also makes the silver man wise and smart enough to only show his beauty when it really matters.
Gold in times of panic, but silver’s right there in the mirror
In the industrial age the silver markets were the most dangerous but this being the information age I consider Gold a much riskier investment than silver. As it stands today the price of gold is higher than the price of Platinum, in the future I suspect the price of silver might be more than the price of the gold. The world is slowly moving away from oil. Silver and copper are the best conductors of electricity, the silver and the copper in the world are being used up what do you think will eventually happen to their value? I could be wrong but I suspect that the price of silver will continue to rise in 2012.
$300 for an ounce of silver is a reality in my mind, this might not be the price of silver in 2012 but I think it will be the price in the near future. I suspect that in 2012 the gold markets will start to experience some volatility, The price of Gold should be around $700 – $1000 per ounce right now, when the dust clears Gold investors might see a large percentage of their Gold investment depleted. What’s worse is I think when Gold goes down this time, that’s when the price of silver will creep up on it.
We’re in the digital age where Fiat money is necessity; unless you’re Rich and can buy tons of Gold to sell to investors I don’t think it’s wise to buy Gold. Gold in my opinion right now should be considered the new “subprime mortgage” The difference with the gold markets however are no banks or governments will bail them out once they go down. So again only buy gold if you plan on hoarding it. I don’t like the outlook on gold for at least the next 10 years.
Final thoughts on silver 2012
I expect the price of silver to rise in 2012 it has nowhere else to go however I will say expect the price of silver to remain around $20 – $40 an ounce until around mid-2012. The thing to watch with silver is the economic recovery. The economic recovery will boost the demand for silver the world is sleeping on Silver and nobody wants to talk about it because what it does is so important to world and if the prices get too high especially now everybody will be affected. I don’t know exactly when it will happen but silver is going to experience a bull run. I’m very bullish on silver. I look at this way Gold $700 – $1000 an ounce Sliver $150 – $300 an ounce.
Thanks for reading some other posts you might be interested in are listed below:
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- Gold Bullion Coins vs. Numismatic Coins / GoldLine.com Reviewed
- What does a credit rating downgrade mean to America?
- How Much Silver Should I Own In Case of Emergency