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Investing in precious metals

Posted by Jeff R | Posted in Education | Posted on 10-11-2009

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The recent downturn in 2009 of the stock market has gotten many people thinking about a recession. Gold is now at all time high and the stocks are looking to regain some traction. This has caused many investors to pull their money out of stocks and put into commodities like gold and silver. For those looking to buy gold coins and there is no better time than now. Each year all of the gold mines in the world combined are able to scrape about 2,500 metric tonnes of the yellow metal out of the bowels of the Earth. This mined gold supply, however, is utterly dwarfed by growing global demand for gold. The best estimates today indicate that the whole planet buys 4,000 to 5,000 metric tonnes of gold each year. Global gold demand exceeds global gold supply by 60% to 100% annually creating an acute structural shortage situation.

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