Steve, my friend who sometimes discusses his investment plans with me because he would like my opinion, told me that no thanks to low bank interest rates, he is thinking of expanding his portfolio to include gold and silver for longer term investment. I told him that he is a little late investing in the commodity market now and looking at the price graph of gold, I am not sure that he should go in since the price of gold has already broken US$1000 per ounce.
On the other hand, based on how interest in silver increased in 2009 particularly by sleeping economic giants like India and China and in older European economies that strangely just discovered silver as a long-term investment product, the price of silver has continued to rise steadily over the year, in tandem with the prices of gold and other precious metals. This rise in silver price has of course attracted the attention and capital of long-term investors.
Steve is not familiar with gold or silver investment as he has been in the stock market all these while, and quite successful too, but he does buy gold and silver jewelry and accessories. Now, after much research in the precious metal market, he is beginning to look at gold and silver through different eyes.
Long term demand for gold and silver is expected to continue in the next couple of months through next year even as the global economy is still trying to recover from a deep recession but the commodity market, like all investment markets, will see periods of volatility. Global investor activity for gold and silver will help to sustain prices yet as in any investment, there are risks too.
Steve wants to know the exact time he should go in but I really have no answer for him. It's best to do his own research and shore up his knowledge on investing in precious metals. Luck plays a part too and I don't want to "bear the brunt of his wrath" should anything go wrong. If there's one thing I learned, it's not to teach others when to invest and on what.
On the other hand, based on how interest in silver increased in 2009 particularly by sleeping economic giants like India and China and in older European economies that strangely just discovered silver as a long-term investment product, the price of silver has continued to rise steadily over the year, in tandem with the prices of gold and other precious metals. This rise in silver price has of course attracted the attention and capital of long-term investors.
Steve is not familiar with gold or silver investment as he has been in the stock market all these while, and quite successful too, but he does buy gold and silver jewelry and accessories. Now, after much research in the precious metal market, he is beginning to look at gold and silver through different eyes.
Long term demand for gold and silver is expected to continue in the next couple of months through next year even as the global economy is still trying to recover from a deep recession but the commodity market, like all investment markets, will see periods of volatility. Global investor activity for gold and silver will help to sustain prices yet as in any investment, there are risks too.
Steve wants to know the exact time he should go in but I really have no answer for him. It's best to do his own research and shore up his knowledge on investing in precious metals. Luck plays a part too and I don't want to "bear the brunt of his wrath" should anything go wrong. If there's one thing I learned, it's not to teach others when to invest and on what.
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