12 January 2012

Gold & silver: Creating the right exit strategy

As we climb the wall of fear in this present Gold and Silver bull market, weak hands are constantly calling tops, even though the kettle has not really started to boil. GI Metals DMCC views that there will be no need to think about getting out of this particular asset class and into another more undervalued one, until two things occur.

Firstly, the general public needs to be getting into gold and silver en-masse, and secondly, the end-game of the current fiat/debt crisis needs to commence in truth: the end-game is the collapse of the world reserve currency. Although this has been occurring slowly over the last century, in order for there to be a mad rush into gold and silver driven by fear and greed, there must also be a pronounced loss of confidence in the American dollar. That is what will turn gold and silver from being the excellent hedge and cultivator of wealth it has been over the last decade to being virtually the only place to be; for a time.

When this period of great fear and greed occurs, it will be time for wise investors to consider moving a good portion of their wealth from gold and silver into other more undervalued asset classes. This article will discuss the strategy which we feel is best for precious metals holders to use in the coming months and years.

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