Ender

Obviously, we all wish that we'd made some plays in precious metals five years ago. Some of us did, some of us didn't.

The real question, now that it's clear that metals will remain in high demand, is whether metal commodities remain a winnable play even this far into their bull run.

In the US, the price of both gold and platinum are nearing historic highs, and silver isn't far off. These commodities, obviously, are being leaned on heavily to provide a hedge against a volatile and weakening dollar.

There are concerns about supply, especially in gold and platinum, as South African mines have recently been having difficulties with the national power grid.

The relationship between the price of an ounce of gold, and that of a barrel of oil, seems particularly ripe for exploitation by well-placed speculators.

But how long will the precious metals bull ride? And how long before investors start getting bucked?

William P

Very intresting there what you have to say. I guess the world needs to start thinking more about metal. I believe China have been doing something with some sort of metal. However I can not quite remember what that was.

Emily A

Assessing them would be clever. However this as all been done far to late. Action like this would off been better if we realized it earlier. Like most other things.

Olivia

About the Gold, Platinum, and Silver. Do you mean that they are becoming harder to come across so they are basically becoming harder to get?

Ender

The value of precious metals is rising at this point mostly due to the depreciation of the US dollar. For American investors, metals right now represent a way to preserve the value of their money against the falling dollar.

Matthew S

Also I think I once heard that is it China that have a large amount of the metals in their hands? I know one of the countries have a large collection of metals.

Just cannot remember which was which.

Christopher D

Things like this will become more and more expensive. We all know this from the very high rise in the price of petrol. It as gone up loads and loads.

Ender

That's the idea. Yes, precious metals are becoming more "expensive" as the dollar slides, but locking in the value of your dollars now by acquiring metals could be of great relief to investors seeking safe harbors for their capital.

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Gold made it up to around 900 dollars right before the we started seeing the hardest symptoms of our suffering economy.

This was due to, one, smarties who did invest in gold, cashed out to make up for loses they incurred through the stock market.

But also this mass selling of gold, and the dropping of it's worth back down, is the metal's way of redefining it's true worth. It seems gold reset's its own price pretty quick.

It will continue to go back up, and will only decline again as it's forgotten about and fiat money regains it's splendor.

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on a side note. I own a box of true silver ware, and I consider it the greatest thing of material value in my house. I'd like to melt it down and recast it into a large shiny silver ball.

Bad thing about precious metal, you are usually buying certificates saying you own it, so in reality you really are only possessing certificate. Which IS lame compared to actually possessing the metal.

But it's my impression that as US citizens we are not allowed to posses gold... could somebody explain this ?

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