Daily Precious Metal Update

December 18, 2009 – Many Americans like you have seen large portions of their wealth, both inside and outside retirement accounts, disappear almost overnight. Risky dollar-backed assets have struggled due to low interest rates and our government’s intentional manipulation of the money supply for their own benefit has persuaded investors to buy precious metals, and in many investors’ case, for the first time.

History has shown that investors flock to buy precious metals and other privately held, hard assets when times are tough, and today’s investors have kept this pattern alive by supplementing their portfolios with gold, silver, and platinum. Some investors never previously felt the urgent need to hold physical possession precious metals, and our current recession has changed the minds of many of these individuals.

Although the credit crunch and mortgage crisis make this particular national financial dilemma much worse, massive fears over dollar inflation were last seen in the late 1970s when the United States began piling up debt at a scary clip. Our economy entered into a recession, which provoked a long-term hyper-inflationary cycle, from which many investors never recovered. Many savvy 1970s investors decided to buy precious metals, and some of these investors made over 1000% during that cycle.

Nobody knows if gold will continue to rise as it did in the 1970s cycle, which is a very similar situation to today’s, so look into the historic trends and speak with a qualified specialist from a reputable gold exchange. Contact Precious-Metal.org if you have questions about the precious metal market, or feel free to take advantage of our free investment tutorials provided below. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org