Monday, November 5, 2012

Gold, Silver Purchases on the Rise

According to Bill Haynes, president of CMI Gold & Silver, there has been some major acquisitions of gold and silver by new money over the last month, with much of that coming from the fall in price on Friday, November 2.

From now on, for the most part, any pull back will be considered a buying opportunity for gold and silver, as it won't matter what type of short-term economic data brings to the table, such as the slightly positive news on unemployment Friday that temporarily drove down gold and silver prices.

The good news is even though many of the recent investors are new at the game, they have enough knowledge to know to wait for dips to buy. If it were the general population buying, it would be more disconcerting, as it would suggest we would have to start looking for some bubble conditions going forward. We're not near that level yet, and the price of silver have some way to go before the average investor starts to throw their money at the asset class, which by the time they get in will be far above today's prices.

The reason why it doesn't matter concerning the anemic economic news that is being spun as positive movement forward, is it's all about the sovereign debt problems the major economic nations face, and the refusal of government to put meaningful and honest austerity measures in place to combat the out of control spending of governments.

That means of course that stimulus spending will continue to rise exponentially, and the price of silver and gold will move up with it, as people and institutions look for safe places to put their money and to battle rising inflation.

While silver should outproduce gold over the next decade, one major situation in Asia could cause gold to jump higher than expected in the short term, which is a reference to the low gold reserves held in the general region.

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