My Investments Are Doing Well

It seems my investments are doing well:

In Hong Kong trade, gold hit a record $1,500.70 an ounce, which traders said was mainly due to Standard & Poor’s downgrade of its outlook on US debt.

Silver also touched a 31-year high of $44.34 an ounce.

When a country’s economy starts circling the toilet it’s common for those living in that country to seek an investment they can use to preserve their purchasing power. Sometimes this causes people to convert more of their wealth to another country’s money (for instance people in Zimbabwe moved to relying heavily on dollars and euros now that their country’s money is worthless). Another place to put money is in commodities.

Traditionally precious metals have done well in times of economic uncertainty. As uncertainty in fiat money increases the desire to place wealth into traditionally safe commodities increases. I’ve been investing in precious metals (mostly silver) for a while and have made pretty good bang on it. Well it would be more accurate to say it appears as though I’ve made pretty good bang on it but in truth I’ve mostly offset the effects of inflation and thus preserved my previous purchasing power.

With all that said it is likely that there will be a correction soon where the price of these metals will dip down. This is usually the smart time to buy because the prices will then continue to climb again. This is the trend that’s been going on for years at this point and will likely continue while the devaluation of the dollar continues.

Oh, and I was investing in precious metals way before Glenn Beck came on the air so don’t both accusing me of following him. I never even watched his shitty show.