Why Do Precious Metals Constitute “Safe Haven” During Crisis?

During times of economic crisis, like the in the 1930’s and during the current economic turmoil, it’s not a bad idea to invest in precious metals. It’s trendy, it’s nice, but most importantly: it has solid financial basis.

As you probably know, fiat money is prone to devaluation and we’re living in terrible times when almost anything can happen to any currency. The euro is on the brink of collapse, the US debt is shooting through the roof and experts are predicting a coming dollar crash.

Smart investors like billionaires and major banks keep at least a small part of their wealth in gold, silver, platinum or, they hold land.

Even if you have a very small budget, you could afford to buy at least a few silver coins.

Experts like entrepreneur Robert Kiyosaki and economist-investor Peter Schiff, as well as advisor sites like (Read More….)

The Importance of Precious Metal Portfolio Diversification

Don’t put all your eggs in a single basket!

Precious metals are a great hedge against inflation, but diversifying it is essential for long-term financial planning and investment risk reduction, as

PrimeValues.org (precious metal investments advisor) advises us.

Here are the main reasons why you should and how you should diversify your precious metals portfolio:

1. It splits the risk:

every investment is risky, even if only slightly – by investing in multiple assets, you split the risk, thus becoming more secure on the long term.

2. More opportunities for growth:

if one of the metals in your holdings “jumps up” in terms of price, then you’ll rejoice gathering profits on it – silver and palladium are for instance, metals with higher potential for growth than gold

3. Gold is the most convertible precious (

Diversion Safes: How To Keep Money And Valuables Safe In Your Home

It’s always important to have a little extra money lying around your house in case of emergencies. Whether you’re facing an emergency or are simply in a hurry and don’t have time to stop by the ATM, having extra cash stashed around your home can save you a lot of stress and hassle. If you have expensive jewelry or precious metals lying around, you’ll need a place to keep small expensive items safe from thieves. Having a safe place in your home to hide cash and valuables is vital for protecting your assets. Here are a few places to stash things in your home that thieves will likely not think to look.

The Kitchen

When thieves loot a home, they’re looking to get in and out fast to avoid detection. So naturally, the kitchen is not the first place a thief would look, making it a great place to hide valuables. The freezer is a great place to keep a little extra cash, but some thieves do check there, so make sure it’s well disguised. Place your cash in a zip lock bag, then wrap it with aluminum foil and place it in the back of the freezer with a label on it to avoid detection. If you’re looking (Read More….)

Chinese Silver Demand Surges Incredible Four Fold in Just One Year

Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives.

click for full size

The fact that silver is again in backwardation at the front end of the curve suggests that tightness in the physical bullion market continues and may even be deepening. Indeed, the massive increase in silver bullion demand from China (confirmed overnight – see below) suggests that silver’s bull market remains very much intact despite becoming overvalued in the short term towards the end of 2010.

Table Courtesy of Mitsui

Surging inflation in China, India, wider Asia and much of the world is of course positive for gold and silver as it will likely lead to an even greater appetite for the precious metals in order to protect against the ravages of inflation and the further (Read More….)