From Arabian Money:There is nothing like a price correction to challenge your faith in a long-term investment. Is the game up? Is it time to sell-out? To answer these questions gold and silver investors need to go back to the original rationale for their investment and ask if it still stands.
So has the world decided to stop printing money and raise interest rates to squeeze inflation out of the system? Has there been a collapse of bond, equity and real estate markets on the back of rising interest rates? Is the world and his wife an investor in precious metals?
Rare investment class
You will still struggle to find individual investors holding gold, and silver is much rarer. They generally still prefer residential property, despite its five-year decline in key markets like the US. And if somebody does own precious metals then it is as a relatively small percentage of a portfolio that is dominated by equities and bonds.
No matter that since the end of 2000 stocks are up nine per cent, bonds 67 per cent, while gold has quadrupled in value and silver is up five-fold. Serious investors will still turn to you and say that they don’t like gold because it does not pay interest. Who cares if you have quadrupled your investment.......read on
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