Investing in gold and silver is a sure technique to come up with a valid investment decision. Making an investment in these two valuable metals may seem to be rather challenging for somebody who has not done this in the past. However, there are a few valid explanations why you should make investments in gold and silver. Having a look at the reasons and understanding them is the only way for you to know if you are having a good investment or not.
Present retail product sales are actually disappointing. When you look at a lot of the major retail stores, you will discover that there’s an increase in their growth. Be aware that details of such growth indicate a rise only in gasoline sales. Consequently, if you back those figures out, you’ll realize that sales were in fact less than agreed estimations. It means that the general economy is not really stable, but it is rather weak.
There’s been an increase in unemployment rates between the last year and the current year. Layoff notices in the public and private sectors are way up by over fifty percent in the present year than last year. As per privately owned employment firms like Gray and Challenger, such figures are predicted to rise. The United States financial system has already lost jobs for more than 6 continuous months, and it worsens the poor state of the economic system.
Presently, there is hardship brewing in the financial markets. Several of the leading financial and loan corporations reduced their own dividends, claimed about big losses and missed their own earning estimations by a huge margin. In actual fact, a number of such companies have a bad equity status. Being mindful of this, shareholders of these corporations should expect practically nothing in terms of dividends. Simultaneously, the share prices of these corporations have gone rather low.
One of the loan corporations is reported to be in such a bad financial situation that the stockholders might receive nothing at all even if the company sold its investments and settled all its financial obligations. The company’s CEO says that there’s an estimate of further deficits and they already stopped obtaining mortgages. Due to the horrendous results of the corporation, there has been a rumor of a possible government bailout in case matters don’t turn around.
Mortgage delinquencies are on a downward trend. Mortgages that were granted 2 years back are claimed to experience a non-payment rate of 0.91%. The delinquency rate prior to this was around 0.33% – which means the present rates are experiencing a downward trend. To make matters worse, these are the rates for prime mortgages. There have been estimates stating that over fifty percent of sub-primary loans which were granted a couple of years ago are likely to turn out in default.
Currency devaluation is even worse than it seems. The CPI is up by five percent. It is regarded as among the biggest annual increases since 2 decades ago. In addition, experts were quoted stating that the figure is even worse than what has been described. During the presidential terms of Reagan and Clinton, the technique utilized in measuring currency devaluation was altered to facilitate the reduction of the official rate.
Hopefully this article showed you why buying gold and silver is advantageous right now. It’s basically because of the awful state of the economy. If you would like to make an investment in precious metals, you could read more in: http://buyinggoldandsilver.org