To date, gold is more than 25 percent, and silver – more than 64 percent, many investors are wondering, they were not included in the bull market of precious metals. Even if you have already had a significant allocation to precious metals, it is easy to expel itself from being able to not buy more. Over the past two years, silver has tripled, and some stocks, such as SLW, increased 10 times.
While a reasonable price and the early investors received large revenues for decades in the precious metals bull market, big money and craze of money remains to be done. bull market is now in the institutional phase, also known as the second phase, where hedge funds, banks and pension funds offer prices for metals and miners. In process of maturing bull market, investment strategies should be changed to reflect the second bull market, with three mania, which is waiting phase.
The second phase and the third phase of the bull market is due to more and more about & # 39; the volume of incoming capital flows. This can be seen in the trend growth of open interest, as well as more on the correction of the application. The upward movement of prices will increase, and adjustments will decrease in length, as seen in October precious metals correction. This causes problems for both new investors and for veterans.
Investors, who are already on the market will have a tendency to want to make a profit, but must resist the temptation to sell everything. As Jesse Livermore once said, "throughout all my years of investing I've found that a lot of money has never been made when buying or selling. The big money was made in anticipation." Fundamentals are still in favor of much higher prices for gold and silver, and as long as this does not change the long-term dynamics remain upward. Real interest rates are in the double-digit negative territory, while money supply growth is still in double-digit positive territory.
Despite the fact that you can wake up tomorrow and find that silver has doubled, and gold – up to 200 dollars, investors that will bring precious metals will be smart enough to avoid the purchase of a lump sum. Both gold and silver are technically overbought and may succumb to a sharp correction. Therefore, the best strategy that store professionals, is the accumulation of small orders for some time and continue to buy, where it allows the cash flow. If prices really correct, then increase the size of the planned purchases using piramidnyya orders, based on the cost.
Investors should also consider the possibility of diversifying the type of investment in the precious metals, which they have. While bullion gold indexes surpassed in recent years, it is expected to change. The financial crisis in 2008 has left many businesses unprofitable and without credits to continue the work. PAAS, SSRI, AUY, and others are still well below their highs in 2008, despite the price of gold $ 1,400 and silver at $ 28 price premium was moved from junior researchers and manufacturers at major, large-cap, producing miners. Now that credit is more readily available, and metal prices much higher capital only began to enter the smaller and junior researchers, as investors realize that they hold the future delivery.
While the easy money in gold and silver have been achieved, the highest income is yet to come. Long investors should sit in close time and continue to accumulate, and those who consider insurance of gold and silver, not even have to consider selling as global decline fiyatychnyh currency is just beginning.