Silver
While recently looking to purchase silver bullion it has come to my attention how severe the silver shortage is. The U.S. and Canadian mints are both having trouble buying enough silver to mint their bullion silver coins leading to a shortage and therefore an increase in prices for the coins. In case you didn't already know the U.S. no longer has a silver reserve and needs to purchase all of it's silver for production on the open market. I have started to buy silver again following the recent pullback from $20 down to the $16.80 level and so should you.
Gold
Gold is being pumped into the market by the IMF and other financial institutions as they try to replenish their cash reserves which has ever so slightly pressured the price lower. The scary part about this is the fact that it is being absorbed by the market so quickly and the price of gold has recovered quickly. Once this "faucet" of gold is turned off the price of gold is going to skyrocket. Also if you believe as I do that the fed will continue to sacrifice the dollar to try and save the economy this will also create a flight to gold.
What to Buy?
I recommend buying ticker symbols: SLV for silver exposure and GLD for gold exposure. You should also consider visiting your local or online coin dealer to begin purchasing actual gold or silver bullion. Full Disclosure: I currently own SLV and GLD.
Interesting Comments
Here is an interesting story I found on Yahoo regarding the IMF sale of gold:
AP
Chavez Muses About Buying IMF Gold
Saturday April 12, 8:26 pm ET
Chavez Says Venezuela Could Afford to Buy Some of IMF's Gold Reserves
CARACAS, Venezuela (AP) -- Venezuelan President Hugo Chavez said Saturday that his government could afford to buy some of the International Monetary Fund's gold reserves as the Washington-based lender faces hard times.
Chavez raised that idea with a chuckle as the IMF, the lender of last resort for countries in trouble, considers trimming costs by selling off some of its gold reserves.
"Look at how the U.S. empire must be in unimpeded decline, that the International Monetary Fund ... is selling its crown jewels," Chavez said during a speech at a military parade.
"The International Monetary Fund is selling what gold it has left to be able to pay salaries," Chavez said. "We could give a loan to the Monetary Fund. ... We could buy some gold bars. ... I think they're selling gold cheap."
Chavez spoke as the IMF and World Bank were holding weekend discussions in Washington. One proposal on the agenda would trim 15 percent of the IMF's staff and sell about US$11 billion (euro7 billion) in the institutions' vast gold reserves.
A vociferous critic of the U.S. government, Chavez also has long opposed the policies of the IMF and the World Bank. He called the IMF "the financial arm of the empire."
The leftist leader spoke during a parade marking the anniversary of a failed 2002 coup that briefly drove him from power. He accuses U.S. President George W. Bush's government of being behind the coup, which U.S. officials deny.
Speaking to troops, Chavez said of the U.S.: "It's an empire in decline, but it's still very dangerous."
Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.
