Investing in gold and silver may seem simple and straightforward, however it is not. Knowing what not to do when investing in gold and silver is just as important (if not more important ) than knowing what to do.
While white metal miners face a variety of challenges, there is an increasing demand for platinum and palladium from vehicle manufacturers in the U.S. and China. And supplies of the hard-to-find metal are vanishing day by day.
Acquisitions by China’s gold mining companies reached a record this year as the metal’s steepest quarterly drop in more than nine decades slashes mine values and sidelines Western competitors laden with debt.
Whilst the Indian government may be getting their way with a reduction in the current account deficit, it seems state gold controls are just leading some citizens into criminal activity and unemployment.
As the West flees the precious metal, another set of gold buyers has come forward with the aim to preserve wealth. While mining production is around 1,134 tons so far this year, gold delivery on the Shanghai Gold Exchange is 918 tons.
The gold and silver miners have been hammered down to historic 1999 lows, while the U.S. banks and U.S. dollar reach new heights. This is a great opportunity for value investors to enter the mining sector at possibly the ground floor of a commodity supercycle.