Aren’t We in a Precious Metals Bubble?

Bull markets typically occur in three phases: the accumulation phase, the awareness phase, and the speculative or panic phase, which is followed by a peak, and then a return to fundamental values. Look at the chart below, which shows gold against other recent bull markets that have gone through all of the phases.

Figure 1: Gold against recent Bull markets

This chart is almost two years old, but gold was around $1,400 per ounce. We are currently only 13% higher than that figure, with gold at around $1,600 per ounce. But what is important here is that gold has not had an explosive third phase like other assets that have burst in the past. A bubble requires

massive public participation in the market, like what we saw with real estate in 2005; everyone wanted in and many people were buying houses sight unseen at over market value, which shot prices up dramatically in a short period of time. It is estimated that less than 3% of the general public owns precious metals of any kind, thus it is probably safe to say that we have not seen the end of this bull market. In comparison to the gold bull market of the 1970s, when gold rose 2,400%, in the current bull market we have only seen gold prices rise about 550%, which leaves some room to grow*.

How Do I Buy Gold and Silver

The first step is to establish your goals and objectives, which you can do by consulting your financial

advisor. All precious metals can do something different for your portfolio. For example gold tends to

be more stable while silver tends to be more volatile making much bigger swings both up and down.

At the same time many analysts believe that silver has the higher potential for growth due to its

historical 16 ounces of silver to every 1 ounce of gold (currently around 60 to 1).

Once you know what your goals are, buying precious metals is a simple process. All you need to do is

pick gold and/or silver, choose the particular product(s) and go to our site and complete the purchase,

and the products will be delivered to your door. For help selecting products for your portfolio call us

and one of our specialists will be happy to assist you.

Owning precious metals should be considered at least a medium term hold. Medium-term (1-5 years

minimum) products consist of gold and silver bullion and low grade (raw to mint state 62) pre-1933

gold coins in common dates. Long-term (5-10 years minimum) products consist of better dated or

rare gold coins in higher grades (mint state 63 or higher).

Bullion products are highly liquid and can perform in the short-term. Gold bullion has averaged

16.56% per year since January of 2001*. Below are some examples of bullion that we have on our

site:

Numismatic products (pre-1933 coins) tend to perform better in the long-term than bullion products.

Since January of 2001, common date $20 Liberty gold coins in mint state 63 conditions have averaged

20.07% per year*. Below are some examples of pre-1933 coins for sale that we have on our site:

To buy gold and silver online at some of the lowest prices in the industry from a BBB accredited

dealer, just visit our secure website at www.goldandsilveronline.com or call us at 1-877-863-GOLD

(4653) between 8am and 5pm Arizona time, Monday through Friday.

*Please note that past performance is no guarantee of future results, thus we recommend a mix of precious metals products just as you would diversify stocks in your portfolio.