One of the members in Malaysia Silver Investor Membership has shared the following video (with the rest of the members) to show how ignorant people are on gold price.
We can’t entirely blame the people how ignorant they are on gold, because for the past 42 years, we are living in a world that uses fiat currency (paper money) for daily transaction. In 1971, Richard Nixon, the president of United State back then took US Dollar off the gold standard. Before 1971, each Dollar is backed by certain amount of gold. After 1971, the Dollar is just paper as the Dollar is no longer backed by gold. Since every country currencies (including Ringgit Malaysia) is backed by US Dollar as reserve currency, from that point onward all the “money” in the world has become paper currency that the central government can print anytime and any quantity they like. While we as middle class are working hard everyday for that? How ironic?!
Most of us in this generation are brainwashed to believe that the paper currency printed by government (which is just some paper not backed by any gold) is actually money. We never have a proper / official education on the value of gold. Most of us buy gold for cultural reasons. It is just a wisdom passed from the previous generations. We never question or fully understand the fundamental of precious metals (gold & silver). This is exactly the reason why I started this silver blog to share more information on silver.
If there are so little people understand gold, there are even less people understand silver.
The potential for silver is extremely positive. Last 2 months, silver coins were sold out in US Mint for twice! Canadian Mint faced the similar shortage problem. Silver, apart from being a monetary metal, it is also one of the most highly sought after industrial metal that being used up in large quantity. China being the 3rd largest silver producer in the world still does not have enough silver and they have to import more from other countries.
According to Christenson from Deviant Investor, the highs in 2004, 2006, 2008, and 2011 were at or above that trend line. A price of $15 in 2006 was just as extreme as a nearly $50 price in 2011 and a possible $100 price within the next two years. The ten year chart of silver prices is plotted on a logarithmic scale and shows a highly volatile exponential increase in prices over that ten year period. The higher trend line extends to approximately $100 by the end of 2013. Prediction – Certainly Not! Possibility – Yes!
If you are interested to find out more about silver, I highly recommend you to read the following book.
I have written Practical Guide For Investing Silver In Malaysia, an eBook specifically written for Malaysian in silver investment. You will learn different silver investment strategies and I will show you how to invest silver below market price! Click here to find out more.