When it comes to investing in precious metals, most investors tend to focus on gold and silver. With gold in the midst of a multi-year bull market, the yellow metal gets most of the media attention. Headlines like ‘Gold to Hit $2000 an Ounce’ and ‘Invest in Gold to Cash in on US Dollar Demise’ have appeared almost relentlessly over the past couple of years.
While gold has been the media darling, it’s actually one of the worst performing metals over the last year. Rising gold prices have been less about economic fundamentals, such as rising demand, and more about speculation. For most non-day trading investors, the last thing that you want to do is invest in a market driven by speculators. Before you know it, the speculators have moved on to some other asset, sending the value of your investment plunging, all while you are left holding the proverbial bag, without even knowing what happened. (more)
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