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      Unlike the price spikes in precious metals pushed by Hunt Brother’s speculation in  1980-81, today’s 25 year highs in metals prices are the result of   substantive demand—primarily the growing world economy spear

headed by nearly double digit economic expansion in China and India.  Worldwide industrial demand for silver now outstrips supply—a condition which may persist.    

      Speculation,

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      The economy is strong by most measures.  Surging gas prices have not slowed demand. The economy is absorbing the price increase and prospering despite it.  

      Stock prices are up, real estate is stronger than expected, and real income is also up. Precious metals continue their steady rise.

      The huge trade deficit continues its bloat, contributing to a perfect storm for the dollar’s decline, which is in fact happening.  The Fed is determined to control inflation but scared raising rates too high could choke economic growth. 

      Likely Democrat gains in November elections due to dissatisfaction with Pres. Bush may spur inflationary tax increases.

      Coming into an election season, expect interest rates to level, gas prices to fall, and increased cash infusions 

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      Precious metals prices are rising rapidly,  but not precipitously.  This might continue, but then again, it might not. Or prices could fall. The only certain thing is that metals prices are uncertain and speculative.

       Can you profit and protect yourself in this kind of market?

      First, know your goals.  Are you a seller,  buyer, or  trader?

      Sellers: Pick the price where you want to sell, and when it hits, sell. Or, sell a portion of your holdings at that price and ride the market as long as you dare with the rest.

      Buyers: Rare date and high grade gold has risen, but not too much, meaning they still have plenty

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Managing GOLD Coins

Stick to the Basics

Rare Coins and the Economy

 

Gold Breaches $700

Silver Pushes $15

Now What?

GOLD AND SILVER UPWARD GO

WHERE THEY STOP

NOBODY KNOWS