Gold Prices Silver Prices – Still a Good Idea?

Gold Prices Silver Prices – Still a Good Idea?

Gold Prices and Silver Prices Still a good Idea? At these low gold prices and silver prices is investing in the precious metals still a good idea? In this video on www.preciousmetalsinvesting.com Ted Sudol and Paul Mladjenovic discuss why they feel at these low gold prices silver prices investing in Precious Metals is still a good idea. Many commentators are very bearish and negative about investing in the precious metals. Today’s gold prices and silver prices seem to be languishing at some of the lowest levels we have seen for some time. The commentators, many of whom seem to have a bias against the precious metals either because they feel more comfortable being with the majority, or because of the financial school background they were educated in, see the low prices as proof that gold is not money and the precious metals are not a good investment. I look at today’s low prices and think how much physical precious metals can I snap up at these bargain prices. I think that the world’s financial conditions that made the precious metals an enduring store of wealth for thousands of years is still true. What is artificial is the paper silver prices and paper gold prices. When you add to that the paper derivatives for physical precious metals the true magnitude of the disconnect between the price of physical precious metals and paper precious metals can only be imagined. Gold leasing, hypothecation, rehypothecation and other financial machinations that balloon the value of the goods from which they supposedly “derive” their value further separate the paper precious metals price from the value of physical precious metals.

Is interesting to note that in the investopedia definition of rehypothecation

“DEFINITION OF ‘REHYPOTHECATION’

“The practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees.” It is a financial technique that benefits banks and brokers. In the case of precious metals it benefits the metals dealer, broker or government who re-hypothecates their clients’ holdings. But have you ever heard of an organization who does rehypothocate compensating the client or purchaser of precious metals “either through a lower cost of borrowing or a rebate on fees?” Have you ever heard of a bank or metals broker even informing the client they are going to rehypothocate the gold the client thought they were buying and having stored for them for the bank’s benefit? In fact Morgan Stanley was fined for charging their clients storage fees for precious metals their clients had purchased and supposedly were held in the banks vaults for safe keeping that either was never purchased or never held for their clients. (Click the link to view the full story in Reuters.)

In another story visitors were startled to find the vaults of ScotiaMocatta, Canada’s bullion bank practically empty. They were surprised by how little precious metals were actually held in the bank’s vaults. ScotiaMocatta Bank (Click to read the full story on zerohedge.com)

Different times require different investment strategies. Investing in Precious Metals is the right investment for today. Ted Sudol of www.preciousmetalsinvesting.com and Paul Mladjenovic, author of Precious Metals Investing for Dummies discuss the right investment for today’s volatile investment environment

All investments are not suitable for all people and all investments, including investing in precious metals there is the risk of loss. The information provided here at preciousmetalsinvesting.com is for educational purposes only. It should not be considered investment advice. The information provided here is believed to be accurate. Make sure you consult with your investment adviser before making any investments.

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