Author: CrackUpBoom

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The World Gold Council started the year off by releasing a report that looked at the four main drivers that will have an impact on the gold market in 2018. The Council has always taken a mainstream view when it comes to the world economy and gold, but there seems to be a fresh perspective that has informed this report.

 

The first thing that the council report notes is the good performance of gold in 2017. It highlights the $8.2 billion worth of gold backed exchange-traded funds as an indicator of a strong demand for gold in the market. Despite rising stock markets and interest rates, gold outperformed a lot of other asset classes. Gold has always provided competitive returns. Since 1971, just after the end of the Gold Standard, gold has provided an average return on 10%. It has also outperformed major stocks in the last two decades.

 

According to the World Gold Council analysts, thee are four key major drivers that will influence the price of gold in 2018.

 

1. Synchronized global economic growth

 

The global economy is expected to grow in 2018. This is particularly important in those countries that consume gold the most like China and India. It is a well known fact that economic growth affects the demand for gold. This is because income increases and more people can accord to buy gold. Economic growth also affects the rate of technology advancement and the demand for gold-containing technology like smartphone. People have money to invest either in gold bars or coins.

 

2. Rising interest rates

 

In an effort to shrink debt and normalise balance sheets, the world’s Central banks usually raise their interest rates. The World Gold Council, however expects most central banks to keep their interest rate low. The conventional reasoning is that high interest rates should put pressure on gold, but the WGC does not think they will have that much of an impact even if they should surge to some unexpected level.

 

Over the past decade, central banks dumped trillions of dollars into the economy, slashing interest, pushing asset values to record high. These expansionary policies by Central Banks created a very volatile market. Central Banks have to reign things in and when they do, the main beneficiaries of this decade-long quantitative easing will come under extreme pressure. Government bonds may lose their value, but gold should hold out.

 

3. The end of the stock market bubble

 

Economists have long held the belief that we are caught in a large stock market bubble. This means there is a lot of systemic risk. The global financial markets have to correct themselves. Gold has always been a safe asset to hedge wealth in times of financial distress.

 

4. Access to a transparent, efficient market

 

According to the report, the gold market has become more transparent and easier to get into. There might be some regulatory challenges, but some countries are working towards making regulations a little easier to allow more investments.

Overall, things look quite optimistic for the gold market in 2018. The World Gold Council has done a great job of mapping out the exact things that will have an effect on how gold does.

Ref: https://www.gold.org/research/gold-market-2018?utm_source=launch-email&utm_medium=email&utm_term=database&utm_content=2018-01-16-download-button&utm_campaign=outlook-jan-2018

https://www.cnbc.com/2017/11/21/bank-of-america-bull-market-ending-in-2018-how-it-will-happen.html

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Silver bullion is often placed behind gold bullion due to its lesser value, no doubt, but what most people do not know is the fact that traders and investors who trade on silver bullion often make a lot of money from their dealings compared to those who trade on gold bullion and as a matter of fact, silver traders make more on price fluctuations of silver that is largely more stable than gold compared to gold which has become highly volatile in recent years. Silver has always been considered as gold’s sidekick, and the extended history silver has that is side by side to that of gold goes back to the same period of time when the barter system was still in use and as commerce progressed and money came into existence, gold, silver and even copper in the form of coins were introduced to the trade world and their remained intact without changing until about a hundred years ago.

From a wider perspective, silver was used as money more than gold was due to its smaller denomination and in some parts of the world a few hundred years ago, silver was more readily accepted than gold and it was due to this ‘smaller denomination factor’ that caused silver coins to get circulated far and wide in Europe and the Americas overtime (this circulation started way before the time of Alexander the Great conquests right up to the doorstep of the swinging 60s). Dwelling deeper into the subject, one would find that between the 16th and 19th centuries among the more prominent factors that was significant or had a strong impact on commerce were the establishment of time zones around the globe and the introduction and acceptance of silver crowns the world over as it became ‘universal money’ that was accepted everywhere.

The more popular silver crown was the Spanish Dollar or more popularly known as the Mexican 8 that which were not only minted in Spain or Mexico, but almost everywhere else on the planet, but that was not a problem due to the fact, the establishments or agencies that minted the Mexican 8 maintained uniform size and dimensions which gave the Spanish dollar a standardized rate in trade and although the variations were minor depending on the issuing nations they played the critical role of supporting commerce to what it was until the end of the 19th when secure paper currency printing was introduced to the world. Since it was easier to carry a small bundle of paper instead of sacks of coins paper money quickly became more popular and those with Spanish dollars could opt to deposit their silver coins in a bank and receive certificates of deposit that carried the equivalent value which could be used to pay for goods and services.

After the 30’s alloyed coins were introduced into circulation from different nations and silver’s role as ‘trade money’ stopped completely. Now, both gold and silver are considered as store value and regarded as ‘real money’ by most people despite the fact that it is not used as money.

http://www.bbc.co.uk/history/ancient/vikings/money_01.shtml

http://bmgbullion.com/silver-very-undervalued/

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The gold bullish market is not over yet. After a highly favorable report released by the Chicago Federal Reserve on Monday, regarding the good progress of U.S. economy and domestic commerce, investors ran behind the Dollar.

Many of them are quite convinced that the FED is going to increase interest rates anytime soon. In order to heat up the situation, the president of the New York FED also talked about the situation, telling the press that the end of this same year would be an ideal moment to make the increase.

And, as usual, when the U.S. Dollar goes up, the gold goes down. Despite this unfortunate event for the precious metal, the Chinese panorama could have the opposite effect. According to a report released by Goldman Sachs Group Inc., a huge demand growth may come from Chinese investors.

The Reasons

Right now, both Yuan and the property market in China are fragile and keep losing value quickly. Constant depreciation policies being executed by the central government are stressing investors, who don’t want to maintain losing their money this way. While the U.S. Dollar or the Euro are both good ways, seems like they have more faith in what gold can do.

According to this analysis, where Jeffrey Currie and Max Layton are involved, bullion demand could increase potentially in the short-term, stimulated by this same fear.

The central government in China could continue with the depreciation process of its currency in order to boost exportations. A weak economy is causing this financial mayhem that began last year. After several depreciations, local investors may be looking for safer alternatives.

Indicators suggest that the Yuan weakness is directly correlated with the gold bullion demand in the Asian country. Now, with an unattractive property market, the demand would continue to growth potentially.

Opportunities in the Market

According to Goldman analysts in this same report, if the gold falls below the $1,250 mark, it should be considered as a huge opportunity to do business. This is something many Chinese investors may be seeing already, because the demand has grown effectively.

Switzerland’s gold shipments increased from 19.9 tons in August to 35.5 tons in September. This information was provided by the Swiss Federal Customs Administration and clearly suggests that the mindset shift was made weeks ago.

The Bottom Line

In order to stimulate the stagnant economy, China has depreciated its own currency a couple times in the last 12 months. While this seems like the only way to boost exportations after a collapse in their system, investors aren’t happy.

Now, a fragile property market has joined the party, leaving investors with zero interest in keeping their money in Chinese territory. This way, the precious metal may be seeing a new window to keep growing after one of its best years in decades.

In this country, FED’s report regarding the U.S. economy could be quite irrelevant. So far, they are seeing gold as a safer bet to protect their fortunes, which is wiser if we consider everything that’s going on, including the upcoming elections.

Sources:

http://www.bloomberg.com/news/articles/2016-10-25/as-yuan-retreats-goldman-flags-scope-for-gold-demand-in-china

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China’s mining indicators could be behind of an upcoming rally for mineral commodities and mining stocks in global markets. Many publications online are arguing that the conditions are almost set in the Asian superpower to trigger a huge hike in the mining sector.
According to Capital Economics, a London-based research and consulting firm, China’s industrial metals demand numbers are really interesting.

The first key of the forecast is that July’s demand for metals is increasing, showing at the same time good numbers for the industrial and manufacturing activities. While growth is something common for China’s economic indicators, increased demand for metals isn’t.

Mining Leader

Just like a publication from Mining.com tells its readers, “China is the leader in extracting gold, zinc, lead, molybdenum, coal, tin, tungsten, rare earths, graphite, vanadium, antimony and phosphate, and holds a second place in mine production of copper, silver, cobalt, bauxite and manganese”.

So far, this is pretty clear for many people who catch up with financial news. But the same publication from this website is claiming that a recent BMI Research’s report is showing how the domestic mining output growth has slowed down.

This is especially important because while mining output decreases, industrial demand doesn’t. For mining companies outside China, this is a golden opportunity to boost their profits. The Asian country will have to import more raw material to satisfy the industrial demand.

The reasons why the mining output growth is going down are plenty. We can see how Beijing is making big efforts to make work environmental policies. At the same time, low prices and high costs are making damage to the business of extraction.

The main metals to consider in this forecast are copper, iron ore, nickel, lead, bauxite, zinc, and tin. All of them will suffer in the following years except for tin, which could actually enjoy an increase in growth.

For copper, outcome growth between 2006 and 2015 was around 9 percent annually. According to the analysts at BMI Research, this percentage will drop to 2 percent between 2016 and 2020. Nickel enjoyed a growth rate of approximately 6 percent during the same period. Now, that number could fall to 2 percent.

For lead, forecasted numbers are worst. The drop would be from 8 percent to less than one. Bauxite’s output growth was around 11 percent, now facing 2 percent for the following four years.

Zinc remained around 7 percent during the years between 2006 and 2015, now falling to less than one percent.

The real opportunity will come to iron ore companies overseas. This mineral enjoyed an outcome annual growth of 13 percent between 2006 and 2015. According to the same report, this number would reach negative ground for the following years, until 2020. The estimation is -4 percent.

Importation was Always a Thing

Don’t get this report wrong. China was always unable to satisfy its industrial demand with its own domestic production. Importation was continuously a need to maintain the economy running at the desired rate.

Now, these pessimistic numbers could lead to a monstrous increase in imports. If you are wondering where you should put your money, iron ore stocks and commodities are a great alternative.

Demand and prices will go up soon, as China increases its purchases in the following months.

Mining.com also reported that China is quickly exhausting its metal reserves, mainly the gold and iron ore ones. While this is something usual, there is an average rate for this to occur.

Global usage rates for gold and iron ore are at 4.9 percent and 3.8 percent. If we compare this numbers with the Chinese ones, we will notice some abuse. China is reporting usage rates at 23.5 percent and 19.2 percent for gold and iron ore respectively.

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Based on facts, there is a humongous amount of gold in space, one study of an asteroid in particular reveals that within its core lies precious metals worth a minimum of $20 trillion dollars. The NEAR (Near Earth Asteroid Rendezvous) spacecraft that passed the Eros asteroid revealed that the 33 X 13 KM banana shaped mountain of rock was actually more metal than rock and it was not just any metal, they were precious metals.

According to their observations, Eros contains no less than 20,000 million tonnes of aluminium, gold, platinum, silver and other rare metals on its nearly 3,000 km cubic mass. This simply reveals that there is more gold on that space object than all the gold ever excavated or could ever be excavated from Earth’s upper layers. This is based on the observations from only one asteroid and the truth is, there are thousands of such asteroids scattered among the stars. Eros as it is would be worth about 9 million dollars for every tonne of its mass.

So could space be the next mining frontier? Highly unlikely due to a number of reasons which include the crash of the markets due to the dramatic influx of precious metals to Earth which would make rare metals, common, another reason why this would not be a feasible venture is due to the fact that these huge bodies of matter are flying around in space faster than bullets and landing on them to mine them is virtually impossible.

What if we can drive these asteroids towards earth? If these asteroids were to impact earth, life as we know it would cease to exist in almost an instant.

Although asteroid mining has been considered as an option for decades, but the ROI or returns on investments based on the ‘guesstimates’ are negative as the costs are indeed astronomical. However, as science advances, we may never know as new information and data are seemingly brining humans closer to this objective of exploiting raw materials from asteroids as the resources on planet Earth become scarcer by the second and added to the fact that mining activities are not actually good for the environment, it does look like the ‘space mining cowboys’ are not giving up on this idea any time soon.

One of the most important factors that these gold mining cowboys have to take into consideration is the target selection of orbital asteroids, not to mention economics which include issues pertaining to changes in velocity, travel time to the target and from the target as well as the value trade off with the payload.

All these factors make Near-Earth asteroids undoubtedly the most attractive candidates for mining activity due to their low velocity and distance which makes them perfect for extracting materials for near Earth space based facilities that can be built either on the moon or an orbital facility which would have a significant impact on reducing the economic cost of such a venture.

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Many people currently believe that the Global Financial Crisis from 2007 / 2008 has since resolved, while money is indeed changing hands and there is more available credit now than ever before, this is not indicative of a healthy global economy.

Since the 2007 / 2008 crisis, central and private banks globally have dropped interest rates dramatically, causing more people to take up low interest loans and hence increasing the supply of currency available to the community. This however has not helped those who were forced to forfeit their assets as they defaulted during the 2007 / 2008 period, the majority are still being chased for repayment of that money even today. The big question about this is, where did all the available money go from the loans which were paid out before the financial collapse.

The housing market was rigged in such a way, everyone inside the industry knew a collapse was about to come, but the ease of availability of credit to companies before 2007 meant many did not have any reason not to issue loans and mortgages.

The benefactors before 2007 were the mortgage and loans companies, they had their loans insured heavily against bankrupcy, so any future collapse would see their creditors paid out a majority of the losses, until this occurred they would be making money off the interest repayments, hence still turning a profit until the collapse actually occurred.

The only thing they needed to do to ensure bankruptcy insurance would be paid out, was that they were not giving out loans in a manner which would be considered unlawful or reckless, this was covered fairly simply, as housing prices began to soar, easy lending mortgage companies popped up everywhere, as their rumours were pushed out to the public to the lines of housing would soon become completely unaffordable, many were willing to lie on their mortgage applications in order to secure a loan, unable to see any other way to ensure housing affordability in the future with the market value of homes and property rising so fast.

This enabled the majority of mortgage companies during the 2007 / 2008 period, to claim they had acted in good faith, and that it was in fact the fault of the mortgage applicant (debtor) as to the fraudulent activity. The truth is none of these mortgage companies did anywhere near enough background checks, and with ease of availability of money from creditors, mainly the big global banks, the scam to hyper-inflate the price of housing and property was too easy an opportunity to pass up.

With property seeming to be a win-win investment, many of these loans were packaged up and sold simply as shares in housing / property packages, these kind of share packages are then purchased by smaller credit companies, to act as securities to their own investors. Many of these shares ended up in the hands of small investment companies, or companies whom mainly look after retirement investment, also known as superannuation investments, across the globe. With the shares classed simply as property investments, and the fast rising rate of housing prices globally, little thought was given as to any amount of risk that could come from holding parts of these fairly unknown mortgage loans.

Then as housing reached all time highs, the fall out began. Suddenly huge amounts of mortgage holders, later dubbed sub-prime debtors, could no longer afford repayments, quickly the value of these private property bonds came falling back to zero, and as creditors rushed to protect themselves, new mortgages were restricted heavily. Many of the mortgage lending companies responsible for the crash closed up shop, having pocketed most of the profits beforehand, leaving the business for bankruptcy clearance companies to handle and on-sell the debt to recover some return to creditors further down the line, while keeping debtors entirely accountable for their past loans.

During the fall out period of 2007 / 2008, governments globally began to prop up banks, the original creditors of the mortgages, to cover their huge losses, hence making the effect of the GFC almost non existent to them. The only losers in this situation became the debtors, while the remainder of the industry was propped back up with stimulus packages reducing or eliminating the first line creditors problems.

It took some time for investment interest in the housing market to begin once more, however by 2009 many individuals with savings prior to 2007 were the first back into the market, today the price of property is around the same as 2002 levels, still a high ratio and affordability is still a major issue.

However mortgage lenders are now stricter with their lending criteria, many people claim because of this there will not be a repeat of 2007 / 2008. To believe this however would be extremely naive.

While there are less bottom of the line debtors, think about this, all these houses sold previously, the original sellers were paid in full, this is where you begin to see the scam unfolding. It was clear to mortgage lenders that their actions would create financial chaos, but it would for the short term (before the crash occurred) push housing prices sky high. With available credit to provide to new debtors, those selling property who understood this situation could effectively cash in with easy home sales before the bust began.

In addition to this, those entering the market in 2009 buying property once more became limited only to those with available funds, those who had made their money before 2007 could now buy up the same property for a fraction of the previous prices, and with extremely low federal reserve lending rates, the price of property was quickly inflated back to near unaffordable levels.

Although the ‘sub-prime’ debtors issue appears to have been a once off scam, do you really think that the availability of cheap loans to more secure investors (those with more available capital), coupled with the current price of housing now again near unaffordable levels, and the banks having barely suffered a dent in their bottom line during 2007 / 2008, are all a combination for a stable economy?

While the main cause of the sudden bust from 2007 / 2008 has been further regulated, the same ability for a crash is possible today, especially with soaring inflation due to the low interest loans being dished out by the federal reserve and major banks once again, pushing the price of property and other goods / services higher. With seemingly static wages offered by employers, and little growth in the commerce and industrial sectors, the recipe for another 2007 / 2008 Global Financial Crisis is still here, it has only been delayed until another time in the near future.

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A few concerns that have become prominent in association with the gold market over the last 24 months will without doubt continue to play its hand right through 2016 with the first being the strong U.S. dollar which has placed an enormous amount of pressure on the prices of the precious metal. This is because, most of the demand for the precious metal stems from foreign markets and based on the fact that most currencies have weakened against the dollar the price of gold in their respective local currencies is not as low as it is relative to the dollar.

For example, if we take a currency that has depreciated by 15 % against the dollar, and gold prices have dropped by only 10 %, gold would in fact be more expensive than it previously was for that particular currency. Countries that trade closely with the direction of primary commodities such as crude oil and gold (Canada, Australia etc), gold prices have actually increased as far as they are concerned. The second concern related to the precious metals market is the current trend by governments with regards to tighter monetary policies such as the Federal Reserve’s increase in the Fed Funds rate after a decade which makes the capital market much more attractive to investors due to the higher returns that it has to offer despite the rest of the world gripping on to their seats that the Feds would decrease the speed of the rate hike installations that it has planned.

The fact however remains, that even the slightest increases have a significant impact on the precious metals market due to the leverage that gold traders use being added to the significantly higher finance costs that follow suit as interest rates rise. This would not be the end of it as low gold prices have also effectively placed most precious metals mining companies in dire straits financially as production costs are higher than the revenue capable of being generated with current prices per ounce. Not many companies have a positive cash flow and most have negative current ratios whereby their current assets are below their current liabilities leaving these companies in at the threshold of insolvency.

Many have opted for stream-based financing which could end up either way, on one hand they continue their mining activities to stay afloat and prevent mine closures and advocate supply which pushes prices even lower whilst moving into streaming contracts that would give them financial incentives that lead to better long term prospects. Gold miners who are in better financial positions have also resorted to restricting output in order give the market a boost towards recovery and higher prices. If we look at the precious metals market from early on in the year gold has lost more than 40% of its value which is in fact a good deal for bargain hunters as they seek to pick the bottom in the market.

What is crucial at this point and cannot be undermined is the fact that gold prices rose for slightly more than a decade before reversing course, and this is very likely to happen again in the opposite direction. However, when this will happen is anybody’s guess.

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While is hard to tell where is the gold going in the upcoming months, looking at Trump’s Republican campaign may give us a valuable insight.

The real estate billionaire is getting closer to the White House against all odds and forecasts. At the same time, this unbelievable situation may be having a factual effect on gold prices already.
Some observers said that Trump’s statements about how much gold he is holding in one of his many safe boxes hit positively the prices. Some followers of the billionaire may have felt encouraged to invest in the precious metal.
On the other hand, the real reasons for his influence on gold could be totally different. Declaring $200,000 in bullion and coins is hardly going to have a serious impact. Instead, gold prices could go up fast due Trump’s unofficial plans for the FED.

Going Back to the Gold Standard

In recent interviews, Trump has stated that he likes the idea of reforming the United States currency and bring back what Nixon eliminated in the 70s: the Gold Standard. According to the Republican candidate, a currency backed by gold is the right way to go.
Despite he hasn’t made any official declaration about his plans of going back to the Gold Standard, observers think that is a real possibility.
Trump’s personal preferences and public comments aren’t the only factors the media is considering to think such a thing. Is true that several key people in the Republican Party have serious proposals for a modern Gold Standard.
This represents a chance for Trump to totally agreeing in something with members of his own party. At the same time, the public opinion who is already supporting him would push forward a new Gold Standard model for the country’s actual financial system.

Notable Opinion and Thoughts

Just like always, Mr. Trump has notable detractors in the public media. But we aren’t here to talk about his political popularity. Instead, we are referring to important and highly relevant opinions about Gold Standard and investments in the precious metal.
In the past, Warren Buffett firmly stated that he doesn’t have any interest in investing in gold. According to him, gold produces no value, no profit, and no interest. He has a similar opinion about Gold Standard and a currency based on precious metals.
It’s clear that declarations from prominent investors like Buffett would have a negative impact on gold prices. Many people are often waiting for the latest public messages from famous businessmen to make a financial decision. The truth is that Buffett has, without a doubt, a didactic influence of the masses.
Trump’s case works the other way around. The mere hypothesis of Mr. Trump arriving at the White House represents a nightmare for a huge amount of people, including investors overseas.
The radical speech and dramatic changes in the political direction of the US may depress the Dollar quickly. Investors who hold their saving in Dollars may now be worried about the upcoming months and the political outcome of November’s elections.

Fear is Helping Gold

With a possible drop for the US Dollar in the upcoming months, investors are already backing up their capital with safe-haven assets.
The potential victory of Donald Trump in the next presidential elections may lead people all around the world to look for more secure ways to store their money.
Glancing the chance of having the Gold Standard back again would represent a revolutionary scenario for gold prices. As interesting as always, gold markets are being influenced by endless, unpredictable factors.
Right now we seriously consider that both fear and hope caused by Trump is relevant for gold markets.

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It is not uncommon that the absence of regular dividend payouts on gold related stocks are explained in an incomplete manner by most public related precious metals companies. People usually try to grow their saving through investments, and most people think that buying gold, they are actually doing this, the truth is they are not in the short term as gold is definitely a long term investment and could be considered as a good investment only after a decade. However, most investors cannot just bury their savings in the backyard for 10 years and hope that they will grow a money tree, so they invest based on what they know, what they think they know or even what they think a trusted source knows. The bad news is that the usual math game on gold the appreciation of gold does not tell the entire story – it never does.

When somebody says, “the markets look shaky, it is time to invest in gold, what they are actually saying is that, the market is going to make us lose money, and holding paper money is going to make us poorer, we need to buy gold and make sure we have what we had when all this crashing is done and over with”. Gold does not generate revenue in most case scenarios, what they do is, they preserve what you have and usually most who convert their wealth into gold do not come out richer, they actually end up with a bit less than what they had before, but not as “less” as those who did not convert their wealth into gold. Gold is not for everybody, if they intend to make quick profits and turn them around again and again in rapid succession, eventually they will get bitten, gold is for everybody who wants to save slowly and surely without worrying that their savings will go south.

In other words looking at gold as an investment is actually wrong, gold is more towards a ‘saving avenue’ than an investment avenue. Even if gold losses value over time, the truth would be that other commodities including paper money will be losing much more than gold, in other words, saving 500 dollars in gold today is better than saving 500 dollars in paper currency as currencies often depreciate much faster than anything else (if history has thought all of us anything at all). However, gold on the other hand, although I tends to lose value drastically in short periods of time (or increase in value), the reality is that gold on average has been on an upward trend ever since the markets were established, making it one of the safest commodities to invest in – in the long run.

Again, as mentioned earlier, it is better to look at gold as a saving vector than an investment and if at all you do manage to save a substantial amount of gold, and prices skyrocket, sell, and when prices stabilise again, buy your gold back and then some.

See also: https://www.futuremoneytrends.com/trend-articles/2014-articles/7-reasons-saving-gold

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Ask any investor about what are their contingencies towards handling the current bearish stock market and most would reply without blinking that they are looking at safe havens. Safe havens such as real estate and gold are the primary choices, but as most people know they are expensive and capital intensive, most forget that there are actually other viable alternatives to gold and that alternative is none other than gold’s sidekick silver. From one perspective, silver is without doubt one of safest investments on this planet due to the fact that it is not only regarded as a precious metal, but it is also used in industries quite extensively, the shortfall is, the returns are much lower, but with a significant amount of investment in the current sluggish stock market environment silver represents one of the best opportunities due to the fact that the silver investing climate is ripe and silver will be riding the bull soon enough.

Of lately, silver has been hovering around the $14 to $15 bracket for some time and the ratio with gold is that an ounce of gold could buy about 80 ounces of silver, which is an overly undervalued ratio and if the market is going to stabilise any time soon, what can be expected is silver will revalue itself to a 1:70 ratio with gold provided everything else remains status quo. What is worrying everybody at the moment is the fact that the global financial system is completely out of whack, more than it was in 2008 and investors are frantically looking for the right bandwagon to jump into, but if at all the global financial system does collapse, any precious metal bought at current prices will be able to offer owners to ride the financial tsunami that is inevitable. The fact is many believe that the right price for silver is actually between $ 17 and $ 20 an ounce, and when the financial system finally does fracture, silver will make its way to at least $ 20 an ounce if not more if the financial system fails to rectify itself within a short period of time.

The fact that all other markets with the exception of the precious metal market is seemingly hazy, with the UK which is the 5th largest economy in the world wanting to opt of the EU, new bilateral trade agreements will be in the works and this would have a significant effect on industries everywhere and where the domino effects of these agreements will end is obscure. Currently almost all the major players in the market have taken a step back and are watching the market movement intently hoping to get a glimpse of what might transpire as the next five years is seemingly looking like the past 20 years as governments blow budgets and central banks monetise debts at a rate that is illogical. It is not a question of whether everything is going to tumble down it is a question of when.