My neighbor, Mr. F, who is quite an old hand in investing in commodities and precious metals, told me that because gold price has risen so much lately, investors with fresh funds have now shifted focus to other precious metals, particularly silver, instead of continuing to chase after gold. Silver may be known as the poor man's gold, it may no longer be so. Did you know that while silver is very popular for us in Asia, it has only just been discovered by European traders and investors? This also helps to drive the price higher.
Mr. F also told me that trading activity for silver increased in 2009 by leaps and bounds and one of the sustaining factors for the price shall be the increased holdings of silver by the Exchange Traded Funds to $2.9 billion, which translates to a massive 8348 tonnes of silver.
The purchases of silver in bullion bars and coins last year had been tremendous, something that we had not witnessed for a long time. Actually, this is true not only for silver but also for most other minerals and metals, probably because of the shoring up by growing super economies like China and India. If you are familiar with the commodity market, you will notice that trading of silver has continued almost unabated. Like I said, this was helped by investors who are no longer willing to commit fresh fund into the investment of gold. I think that they expect gold to experience a price correction soon since it has risen so high, so quickly over these past months.
You know, although I have always wanted to invest in precious metals because they require no topping up of capital or maintenance or even regular attention, it is too bad that I have missed the boat this time around. Of course I could still go in at this point but the risk is greater compared to the last couple of years, a risk that I am not willing to take. I guess I will have to hold my horses and wait for another sterling opportunity.
Mr. F also told me that trading activity for silver increased in 2009 by leaps and bounds and one of the sustaining factors for the price shall be the increased holdings of silver by the Exchange Traded Funds to $2.9 billion, which translates to a massive 8348 tonnes of silver.
The purchases of silver in bullion bars and coins last year had been tremendous, something that we had not witnessed for a long time. Actually, this is true not only for silver but also for most other minerals and metals, probably because of the shoring up by growing super economies like China and India. If you are familiar with the commodity market, you will notice that trading of silver has continued almost unabated. Like I said, this was helped by investors who are no longer willing to commit fresh fund into the investment of gold. I think that they expect gold to experience a price correction soon since it has risen so high, so quickly over these past months.
You know, although I have always wanted to invest in precious metals because they require no topping up of capital or maintenance or even regular attention, it is too bad that I have missed the boat this time around. Of course I could still go in at this point but the risk is greater compared to the last couple of years, a risk that I am not willing to take. I guess I will have to hold my horses and wait for another sterling opportunity.
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