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Are precious metals better than currency today?

September 21, 2012911 view(s)

Recent actions by the Federal Reserve have a lot of investors worried that the dollar will see a slide in value, making precious metals look more attractive. The Quantitative Easing that Chairman Ben Bernanke has opted for means a lot more individuals will be looking to start buying silver, gold or any other asset that can take them away from the dollar and help them remain as secure as possible against a potential drop in its value. A recent article by Jeff Mackie in Yahoo Finance's Breakout suggests that the time to invest in gold is at hand and that traders are embracing this notion in numbers; that means prices per troy ounce are shooting up faster than they have been all year. This is fantastic news for those already holding precious metals, but for those who have been waiting to get involved, the time has arrived to get in before prices jump out of their reach.

Often, precious metals investors look to experienced sources to get their advice and Jeff Kilburg, the founder of Killir Kapital Management is a good example of this. The CEO told Breakout that while buying silver has its place, he prefers gold. Those who choose to invest in gold should expect it to rise a solid double-digit percentage by the end of October in the lead-in up to the US presidential election.

"I continue to see gold shine higher," Kilburg told the media. He went on to state that he sees gold coming in close to $2,000 an oz and that is where his focus is today, believing that gold will easily surpass old highs of $1,900 in the time he's predicted.

While Kilburg himself might not be overly enthusiastic about silver's potential to see a spike in value, many other analysts have been. They believe that as the dollar's value drops, investors will want to diversify and hold more than just gold. They have also told the press that silver is undervalued and holding silver bullion is smart because of the dwindling supplies of silver across the world that are still not being promoted in the media to quite the same extent as the yellow metal usually is. Kilburg admits, however, that silver is a solid asset with a lot more industrial uses than gold has.

Holding onto currency and stocks may make sense when inflation is not a lurking danger, but these days many voices in the financial world are advising against it. Inflation, say experts on global economics, is very likely to descend upon the US economy in the near future and when it does, those who are sitting primarily on cash or stocks are liable to feel the heat as their assets drop precipitously in value.

Gold and silver may not be the kind of investments that some want to hold, but their long-term value is beyond question. For centuries, they have been solid stores of wealth and helped people get through rough economic times just like those that are being predicted for the coming years. This means considering them could very well be a wise move.

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