There is an old adage that still rings true in today’s complex investment world. That adage is “Lies, damn lies and statistics.” What the adage implies is particularly true in the current global economy, where everyone, except the “little guy” holds the purse strings. Honesty and transparency in financial dealings seems to be thing of the past. Statistical manipulation to affect market indicators and the price that things are bought and sold, is common worldwide.
Although precious metals, like silver and gold, are not entirely immune to these exploits, ownership in physical gold and silver is one way that some of the pitfalls of owning them on paper, may be avoided. Short selling of contracts, frightening mining management into accepting pre-sales of future product and falsely reporting reserve levels are only a few of the ways that precious metals markets can be manipulated. This does not even include the changes in rules and regulations that constantly batter commodities markets, causing wild valuation swings at a moment’s notice.
This is why physical ownership in precious metals is the best survival tactic in these tough economic times. It is likely that governments are manipulating recent markets to shore up the weakening dollar. The price drops currently being experienced in precious metals valuations are naturally followed by a rising paper currency value. Conversely, precious metals go up in value when paper currencies decline.
Precious metals, like silver and gold are known as “safe haven” investments, because they are intrinsically valuable. Despite the growing calamities playing out on Wall Street and at The Federal Reserve, ownership in easily liquidated forms of silver and gold is good insurance.
