Thursday, February 19, 2009

Will Silver Prices Go Up in 2009?

The current economic crisis has some people confused about their money and what to do with it, and the usual safe haven of silver and gold during crises like this, hasn't resulted in them behaving in the usual predictable manner, nonetheless, prices of silver and gold are beginning to go up, and that should be the case for some time.
People don't seem understand what has happened and why, as far as the U.S dollar retaining its strength when the underlying fundamentals said it should have been in a much weaker position, and why gold and silver, which usually does very well in hard economic times, were not moving up in price like they usually do.
What this is called forced liquidation. What forced liquidation means is companies and funds are forced to liquidate or sell their positions in silver and gold in order to raise cash for a whatever reasons they need to, including covering their positions.
Consequently, because silver and gold are denominated in U.S. dollars, it gave the greenback an artifical propping up as companies moved out of commodities in a number of cases in order to simply survive or get their hands on some cash.
As far as that relates to the price of silver, at this time it looks like a number of companies and funds have unwound their positions and got hold of the cash they needed to, so it seems they're starting to move back into the profitable silver and gold market, which promises to do very well in 2009, and probably into 2010, especially in contrast to competing investment sectors.
So yes, silver and gold prices will increase in 2009, and those investing in the two precious metals will find their net worth going up with them during the same period.
Silver Prices
Article Source: http://EzineArticles.com/?expert=Taylor_Raimee

Investing in Gold ETFs to Strengthen Your Portfolio in Difficult Economic Times

The economy is in turmoil and your stock market investments are losing their value. Governments across the world are printing and borrowing money as fast as they can to prop up their financial systems. Investing in gold is a way to potentially profit from this madness.
There are many ways to profit from gold investing. You can own the physical coins. You can own a gold stocks. You can own shares in the gold mines if you have the capital. But the single easiest way to get into gold investing is to own what is called an exchange traded fund. A gold ETF trades just like a stock. You can buy shares of the ETF which then invests the money in standard gold bullion.
The nice thing about ETFs is that you profit from the potential rise in gold yet you do not have to worry about storage, nor do you have to deal with selling it. Gold investing in an ETF is about the easiest way to invest in this precious metal.
There are no guarantees that a gold ETF will go up in price. Supply and demand dictates whether the price will go up or down. Many people believe that just because they own gold that they will instantly be rich. This is not necessarily the case as the price of gold can go down quite low. Of course, gold can go up in price as well.
The performance of gold in 2008 was about 5% increase. This was considered disappointing by gold "bulls" as they figured the price of gold to increase in value much more given the state of the world's economy. Many analysts believe that the price of gold could very well go over $2,000 an ounce over the next few years.
If you believe that inflation will rise and that the economies around the world will continue to decline then gold may very well be a good safe haven to protect your investments. If nothing else it may be wise to diversify your portfolio and invest in gold. If the stock market for beginners poses too many challenges then a simple investment in a gold ETF might be a good place to deploy your cash until the market turmoil subsides.
Investing in gold is relatively easy with gold ETFs. Gold investing is a good way to diversify your portfolio in tough economic times.
Article Source: http://EzineArticles.com/?expert=Hunter_Riley