Everybody is looking for an edge these days. After all, the economy is still recovering from the financial meltdown of 2008. Unemployment remains stubbornly high and there is little confidence that the government will ever come up with a real solution to tame the national debt. While you might be tempted to invest in the current high stock market, do so with caution because there is no rational for the market to be high right now. While precious metals have taken a hit recently the precious metals outlook is good.
Wealth Daily reports that the continued global volatility is making investors nervous. Many advisers are telling their clients to hold onto their precious metals, and some are even saying now is the best time to buy. Yes, gold and silver have dipped in price, but selling off at a loss is a mistake. Buying at the current low spot price is prudent; because it is probable prices may never go this low ever again.
The stock market will tank, eventually. If we take pause and look at the stock market for a moment what is the reason it so high? The answer is corporate profits. Yet, companies are still not hiring and those working are doing the work of 2 and sometimes 3 people. Raises in pay seem to be thing of the past and real wages are at the equivalent of what they were when Bill Clinton was president. Many companies are more profitable because they cleaned house and rid themselves of high paying salaries, not because they are selling more products.
We can expect stocks to endure a correction, soon. The time to invest in gold or silver is now while the price is discounted. According to Investing Answers the FED has been pulling out all the stops to keep the economy afloat. However, some predict their over aggressive stimulating of the economy is actually causing long-term damage that will eventually show up as high inflation. If we believe this then we can expect gold and silver to go up because these two precious metals perform better when inflation is high.
The very fact that the FED is still stimulating the economy 5 years after the big melt down should tell us the Great Recession was a big deal. Yet, Investing Answers believes it is FED’s over stimulation policy that has caused stocks and metals to be where they are today. The problem is no one can make sense of where to invest because these are indeed not normal times. Yet, gold and silver have a long history of protecting wealth and should not be abandoned now.
Finally, if you expect to endure the current economy you must invest in physical precious metals like gold or silver. While high inflation has not yet hit, it is likely that it will. This is because the FED is still sinking $85 billion in paper dollars into the economy each month, and eventually inflation will return. Since gold and silver perform better when inflation is high it just makes sense to buy while their spot prices are low.