Buy Bullion Now – 7 Important Reasons to Invest in Silver and Gold Bullion
By Dorotee Joe
It seems, recently, the financial market, everything is good in the world once again. Crude oil prices plunged 20 percent from its recent high of 145 dollars a barrel. Stocks are rallying. The dollar has strengthened. Now experts say that the property market fund. The commodity bubble has burst. The oil is on its way to $ 100 a barrel. And soon, the year of the credit crisis a long time, housing slowdown and economic downturn will be just a bad memory. The future is so bright that you have to wear shades, right? Not so fast. Before rushing to exchange your money and gold bars for depreciation valuable paper dollars, take off the rose colored glasses and examine the facts behind the hype. Here are seven good reasons to invest in silver and gold bars: 1. The weak economy is not improving retail sales for the month of July were disappointing. Wal-Mart, the 3% growth in sales of the store was less than expected. Yes, the results of Costco were the bright spot – up to 10%. However, when you dig into the details, it turns out that the reason for the strong growth is the increase in sales of gasoline. Back on these figures, and sales grew by only 6%, below the consensus estimates! Particularly weak were sales performance of retailers in adolescence. This does not bode well for back to school sales in August. How many children return to school in costume from last year! 2. The employment situation is sad extent of unemployment has risen to 455,000. This represents an increase of 448,000 the previous week. Look for this figure to rise as job cuts by employers in the United States rose last month. Chairman’s dismissal are up 141% in a year from private equity firm, Challenger, Gray & Christmas, Inc. is above the dismal unemployment figures reported by the new Department of Labor last week. The U.S. economy has lost jobs for seven consecutive months and the unemployment rate is up to four years. 3. Financial markets are still unstable Freddie and Fannie are red. Freddie Mac and the two mortgage giants Fannie Mae profits missed estimates by a large majority, has reported a huge loss and have greatly reduced their dividends. If this were not enough, Freddie Mac now has a position of negative equity. Translation: shareholder would get absolutely nothing if Freddie had to pay all its debts and sell assets. CEO of Fannie Mae expects “losses” significant in 2009 and will no longer buying Alt-A mortgages, at the end of the year. These results increase the likelihood of a horrendous bailout of big government. 4. The housing market has no mortgage payments are late Bottomed worsens. Mortgages that were issued during the 1st half of 2007 now have a delinquency rate of 0. 91%. The delinquency rate for 2006, the loan was 0. 33%. These subprime mortgages, folks. It is estimated that 65% of subprime loans created in 2007, will be in default. These figures show that seizures of homes remain at record levels. 5. Inflation is worse than it appears the inflation monster is alive and well. The index of consumer prices (CPI) rose by 5% in June and the largest one year increase since 1991. This statistic is even worse than it sounds. During the Reagan and Clinton terms, inflation was measured as has been amended to lower the official rate. If you calculate the CPI was calculated the same way in 1980, you must add 7% to whatever figure is released. This means that the actual inflation rate is 12%. No wonder the average person in the street is wrong! Investors are betting that oil prices will be lower tame the inflation monster. However, even with the recent correction in oil prices are still 61 percent from where they were a year ago. 6. The Fed will not raise rates to fight inflation that the Federal Reserve is stuck between a rock and a hard place. As expected, the Fed kept its target rate for Fed funds at 2%. The accompanying statement also reflects a relatively moderate tone. Downside risks reduced the sentence “and inflation expectations have increased” since the June 25 declaration was found. Fed funds futures now price in only a 52% chance of higher interest rates for the next two FOMC meetings. It ‘a fall from a prediction that was higher by 80 percent last week! PIMCO CEO Bill Gross said that the talks of rate hikes are “comical,” “We are in a recession. When the Fed has never raised its rates in a recession?” He said. “Unemployment is directed towards the 6 percent, mortgage rates for home buyers are at 7 percent, and these guys want to raise rates? 7. Global tensions are offensive HIGH Georgia’s Move is risky. The war broke out Thursday in the area of strategic importance for Georgia, the control of South Ossetia. The price of oil seemed to take matters in hand, doing absolutely nothing. At risk, however, is an international network runsclose by, not to mention the possibility of a conflict of triggering a wider war. Gold and silver are now at the lowest level in six weeks, giving investors the perfect opportunity to buy. If you are still not convinced that you should invest in precious metals, just remember this: history has provided many examples of paper money whose value was destroyed. But gold and silver have survived the war, inflation, deflation, recession and depression. silver and gold bars are a haven for those smart enough to realize their true value.
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March 10th, 2010