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How to invest in precious metals?

How to effectively invest in precious metals?

What do you need to know to earn on precious metals? It is absolutely essential to know how to invest in bullion! We have two basic forms of capital investment - direct and indirect.  Differences are fundamental and essential to your wallet, because....

The direct investment consists in purchasing physical gold in the form of bars, gold coins (I mean gold and silver, not jewellery with a blend of other bullion).  This is an excellent long-term investment.

It is a safe form of investing primarily because we see with our own eyes what we actually have.

In the case of deposits related to precious metals, we can talk about other options of investing capital, e. g. shares in gold mines, structured products, gold and silver funds and derivatives. I strongly advise against this type of investment.

Paper market for precious metals 

In the context of the thread under discussion, it is essential to address the problem of the gold and silver paper market. Therefore, pay attention because this information is important to you and unfortunately it is ignored in the professional media, which effectively manipulates the recipients.

The following knowledge is essential for any major investor in precious metals.

The growth of investment options on the paper metal market (gold and silver certificates, futures contracts and options for precious metals, ETFs, investment and custodian funds, structured products) has brought new dynamics both in trading and in the investment area, and investment derivatives have also provided financial institutions with ample opportunities for potential short-term harassment and price manipulation.

Today, today, most of the gold and silver paper market is based on trading in COMEX listed futures contracts and on the equally popular ETF funds (the shares of the ETF fund, which complements metals in their physical form with an independent depositary).

Importantly, these' paper' investments are not in any way protected against wider economic risks such as currency collapse or liquidity crisis. Furthermore, it is doubtful that the ETF should reflect the real value of gold or silver, as fund prospectuses are burdened with exhaustive and unclear legal terminology and gaps.

Investing in precious metals through traditional forms on the market paper

Investing in precious metals through traditional forms in the paper market creates an additional problem. While a deposit at the beginning seems to be safe, incidents such as the recent failure of one of the most important players in the derivatives market - Global MF showcases the weakness of this method of capital multiplication.

MF Global played European positions badly and, in order to save himself, he used the funds of the clients to whom he sold these derivatives. As a result, he lost this time as well, going bankrupt.  Thanks to the MF Global Krach, many customers will not see their capital again.  In addition, failure has had a destabilising effect on the financial system.

Experts from Mike Maloney and Warren Buffett prove that financial derivatives (calling them' financial voodoo' and' weapons of mass destruction'), initially designed to limit the risk of an economic crisis, simply' spread' this risk across the world!

Many creators of the gold and silver paper market have only a fraction of the basic metal reserves that they can trade in, and yet they still issue "empty papers" for non-existent (potential) quantities of bullion.

In the meantime, successive market players are slowly building up an "artificial lever" on the aforementioned.  A fraction of the silver and gold reserves held.  Just as the banks are doing it in today's system of group loans reserve.

As early as 1993, the well-known investor Worren Buffet was of the opinion that one day derivatives could trigger a catastrophic chain reaction on the global financial markets. In his annual letter to shareholders in 2003 on the current economic and stock exchange situation, he once again called derivative transactions with "nuclear clock bombs".

In 1992, E. Gerald Corrigan, then president of the New York Federal Reserve Bank, warned that derivative instruments tend to contribute to the balance sheets and profit and loss accounts of financial and non-financial institutions "a risk element and distortion of the true picture".

Large orders for gold and silver sales hamper the increase in the price of bullion.  This is, of course, a market manipulation that exacerbates the imbalance between the price of physical metal and the value of its paper derivatives!

The market scams of players lead to the theoretical stability of "paper-based investments" being undermined and it is certain that they squander customers' capital.

It is already clear to you that investing in' paper' gold and silver is threatening to be a financial loss, let's say openly - it is a market bluff! In order for everyone to understand this, we need loud compromises from the big players - the fraudsters.

The artificial market is overshadowing this real market, effectively underestimating the price of physical gold and silver. However, soon after the resources of bullion are exhausted, paper gold and silver will not be able to maintain a monopoly in determining the value of the metal.

The bullion will then be fairly valued!


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