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Rarely in the last twenty years (as of August 2002) has there been such a promising opportunity to invest in precious metals in general.
Many experts agree that now is a excellent time to invest (as usual, a part of your money - never put all your eggs in the same basket) in gold, silver, precious metals funds, precious metals pools, mining companies stocks, etc.
In the past, a precise series of factors have positively influenced the price of gold positively. Usually, when the price of gold goes up, the price of silver follows (often on a greater scale). Also, the unhedged precious metals companies (those which have not sold in advance their future production) often see their shares gain in value in an even greater proportion than the price of gold. For example, the price of gold goes up 10% and the shares of some companies goes up 20%, 40% or more.
At the beginning of the eighties, the price of gold went from 35$ an ounce to more than 800$ an ounce. Many experts agree that a similar situation is going to happen in the next months or years. Now is the time to buy gold!
Ten years ago, silver was priced at 52$ an ounce. It is now at 4.60$/oz. If the price of gold multiplies by five, the price of silver might multiply by even more (10, 20 or more).
The factors that usually positively influence the price of gold
1- ECONOMIC UNCERTAINTY. DROPPING STOCK MARKET.
For thousands of years, gold has been perceived as a safe heaven. Wherever you go, whatever the time you live in, if you own gold you can sell it to someone else or exchange it for goods.
Over the long term, contrary to paper currencies, gold approximately keeps its buying power. For example, 1000$ (US) of today is approximately worth 6000$ of fifty years ago. The value of a given good (a car, a suit) of equivalent quality costs approximately the same amount of gold today as it did ten or fifty years ago.
The American economy is going bad. It has done so for the last two years. The Dow Jones, in 1999, flirted with 12000. It is now going lower and lower almost everyday and is now around 8000 (a 33% loss).
In general, the medias are actually trying to hide the fact that the economy is in a very bad state. When investors will, as a group, have understand that there is nothing good coming out of the markets, they are gonna switch to gold and its value will increase.
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