If you check at the five years chart for gold and silver spot rate, you will notice that the price of gold and silver keeps on going up.
You wonder why the craze for investing in gold and silver.
You may think that the recent crisis had made many people poor, and that most people would be selling gold and silver instead of forking out cash for investing in gold and silver.
If you have this thinking, that means you know nothing about the value of these two precious commodities.
The fact is that gold and silver are both safe havens for people ina crisis.
For example, when the Vietnam War broke up, and the Vietnamese were flocking to leave the country, what do you think they do?
They sold everything for gold. They did not even want to keep their money. They wanted gold.
The same thing happens in a financial crisis. People buy gold and silver with whatever money they have.
It is not a recent phenomenon.
The craze for investing in gold and silver is as old as the history of mankind.
If you read the Bible from cover to cover, you will notice that the ancient people had more faith in their gold and silver than faith in God in many instances.
That is why the advice to love God, and not gold and silver. After all, God made everything, including all the precious commodities.
The question now is: Is it a good time to invest in gold and silver?
There is no clear answer to this question. You have to consider the factors below.
1. Declining value of US Dollar
The declining value of US Dollar is the main reason why the craze for investing in gold and silver started.
People around the world know that the declining of US Dollar will continue for the foreseeable future.
The economy in the United States has not fully recovered. Many people are still unemployed.
The government of the United States tookthe step of printing more money. That is why the trend of declining USD continues.
As long as the USD continues to decline, you can invest in gold and silver. This is a way to hedge against the loss of buying power.
2. Spot price of gold and silver
The current spot price of gold and silver in January 2012 is very high.
Many experts are sounding out warning about a major correction in price.
That means a drastic drop in the spot rate of gold and silver will occur. It is very likely to take place in the early part of 2012.
If the price correction causes a fall of 20% to 30%, that will make the gold and silver very desirable for first time buyer.
It is important to pay attention to the experts. This is especially so when nearly all of them agree on the matter.
They have followed the pricing of gold and silver for a long time. They have the instinct for the changing sentiment of the investors, as well as the advance technology to help them.
If the price really drops 30%, please do not miss the opportunity for investing in gold and silver. You may not get this chance for a couple of years.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.