(October 25, 2012) - We've been hearing a lot of positive things about gold and silver in the media recently, which is always music to investors' ears, but a new look at the future shows things may be even brighter than previously speculated for those who hold hard assets. For those investing in silver alone, 2012 has been a very good year with prices rising by 18% to sit around $32 per ounce. Gold traders, too, have come out ahead with an 11% increase in price, bringing gold to about $1,740 per ounce currently. As strong as these prices are, a recent article by Saht Muja in The Examiner attributes the rise to improvements in the stock market. Muja also stated that as we have another presidential election in the United States, the demand for both the yellow and the white metal will be increasing.
This is great news for those investing in silver or gold today because it shows that even in times of market gains, the demand for metals is increasing - something that does not always happen. Gold and silver are likely to see increases because as good as things seem in the markets, the underlying financial realities of many of the world's bigger economies are not so pretty. Gold traders should see a lot more trading as demand from the central banks of both India and China increases. These two economies are closely connected with the economies of the US and Europe whose central banks are also snatching up gold in large amounts.
Demand for precious metals remains breathtaking among the average investor, as Muja reports, "The Federal Reserve has kept U.S. interest rates at virtually zero, with no sign of a hike on the horizon, thereby lowering the opportunity cost of buying gold. And investors have responded with astonishing eagerness, even forcing the U.S. Mint to ration popular bullion products in order to meet overwhelming demand."
Right now, the dollar remains strong, but if the speculation of economic observers proves to be correct and the US economy does take a tumble the way it is so widely expected to, investors should be prepared for a major jump in the value of gold, silver and platinum. Hard assets are safer than currencies, according to most experts, and a lot more likely to keep their value even when those outside the US are no longer pursuing purchases of its assets. For many, it seems that no matter what the Federal Reserve and other central banks do to fix the economy, currencies are in trouble and it is only a matter of time before serious inflation is finally felt.
Not even expert analysts can predict how markets will respond to changes in the future, most agree that hard assets are the safest bet for protecting one's wealth. It seems investors are going to have some hard choices to make in the coming era. If economic woes arrive in the way they're predicted to, having a store of precious metals could make a big difference in how far a person can stretch their income while still not seeing a serious drop in quality of life.