PRECIOUS METAL INVESTMENT
August 12, 2011
In the past, people have invested in gold or silver as a method for storing value when a currency was losing its value. But today, our currency is no longer backed by gold per se. It is backed by the gross domestic production of the nation. Now there are many other reasons people have for investing in these precious metals. For the last several years, the consumption of gold, silver, platinum and palladium has far exceeded its production. This is coupled by the fact that the market price of these precious metals has been kept relatively down by the selling of gold reserves by central banks. In addition to this, rich foreign investors from developing countries have been increasingly looking for an investment to store away their personal wealth. They are moving out of their governments, which are often in the hands of corrupt politicians. It would take a global recession to slow the demand for gold and other such precious metals. Precious metals have long been looked to as the repositories of absolute value--not the relative value of paper currency.
Chart for the gold price performance for 5 years range. (click image to have a clearer result.)
When most people think of investing in gold and precious metals, they think of bullion (bars and wafers). Although many people do invest in bullion, there are investments in many different forms. Precious metal investments can be made in jewelry, coins, bullion, futures, options, mining stocks, or mutual funds. In this sense, they have tremendous liquidity and can be bought and sold without problems. Platinum and palladium, however, are less liquid than gold and silver. Each of the above types of precious metal investments is easy to get into and to get out of.
For me, the easiest way to have access on these vehicles is on buying stock shares from the mining companies. It almost in same way, if the company managed to have a good profit on precious metals, I do receive in the same in terms of dividends. If time will come that we do need the full investment, we can sell it immediately at the current bid buy price. I do have high confidence that we could sell it at profitable price, see back the gold price performance chart.
Below are the public listed companies in Philippine Stock Exchange.
Out of the rest, I picked the below companies as my best bet referring from their one year price performance:
PHILEX MINING CORP.
LIPANTO CONS. MINING (A)
MANILA MINING CORP. (A)
Good luck and God bless, PSEi is still down on this month of August. We still have a good opportunity to ride on before the bull starts to run.
Happy investing / trading.
Angat Pinoy!..
Posted by jov3n- trader202. Posted In : Trader202: Tips & Tricks
