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Sunday, August 2, 2009

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The Gold and Silver Markets Continue to Survive in A Bad Economy

According to some experts, the U.S. economy will bounce back by 2010. Investors are still wary about the possibility of losing their investments in stocks and bonds. Even though gold and silver are considered to be more stable than stocks, investors are still very concerned.

Although the statistics are not very accurate, it is estimated that retail investments have an allocation in gold and silver at the most two percent. Since the “financial layman” barely has knowledge of the price of gold and silver in any market, a number of financial advisors and retail investors don’t have a reason why a person should choose gold or silver or how they would go about making an investment.

While gold has made a strong comeback, the US stock markets have less pressure again after a seven year low close on the Dow Jones. There is definitely a chance of panic when the stock market does poorly and has a negative effect on the worldwide economy, even thou gold and silver procured have produced sound foundations in the short, intermediate and long terms.

Desperate attempts by central banks and governments to delay deflation of currency are hindering the market, and even creating a worldwide crisis, while investors move to more tangible hard assets to protect their investments.

The non-specialized, sporadic media coverage of gold and silver hasn’t changed over the years, and remains indifferent almost negative with regard to financial conditions. The lack of coverage would indicate gold and silver are in the primary to middle stages of the bull market. “Gold fever” causes misconceptions in the commodities market. The fact is that just a small fraction of retail investors have an allocated interest in gold and silver, the overweight metals.

Lately, there have been misconceptions about gold. For example, many believe that gold is overvalued and many investors will experience a great lose. As a matter of fact, there has been polls taken that say numerous analysts are very optimistic about the gold and silver markets. These analysts remain positive toward gold and silver despite current worldwide economic and financial disasters.

Apprehensive analysts are usually stockbrokers, product sellers and others that have a vested interest in the negative outlook towards gold and silver. To find out further information about the gold and silver markets, search online for the latest news.

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