Wednesday, April 6, 2011

Why Poor Man's Gold Will be THE Investment This Decade.

Gold beat everything in 2000-2010, but silver (a.k.a.: "poor man's gold") is going to outshine gold from 2010-2020.

At least the way Eric Sprott sees things. Here's why:

  • Once the government starts printing money (QE 1, QE 2...), people start to look toward preserving their savings. Precious metals act as a value store.

  • Money printing is a world wide phenomenon.

Couple that with the facts that silver has many more industrial uses than gold, and silver tends to move up along with gold and you can see where there might be increased demand. Some investors will start to grow wary of a gold bubble, and start to move into other precious metals. Silver is a great alternative.



3 Risks to precious metals (gold and silver) Investing:

  1. The performance becomes "maniacal" and is no longer rooted in common sense.
  2. Governments become fiscally responsible, stop printing so much money and live within their means.
  3. Governments make gold and silver their currency.



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