The prudent investor knows there are plenty of good reasons to invest in precious metals these days.
What many investors don’t know is that two of them are named Buffett and Gates.
Yes, Warren Buffett, the world’s most famous investor, has reportedly accumulated 130 million ounces of silver in recent years.
And Bill Gates, who also knows something about investing (maybe you've heard of Microsoft?), has backed up the Brinks truck in recent years to buy a large chunk of one of the world’s largest silver mining companies, PanAmerican Silver.
Few have gone wrong playing along with Buffett and Gates, the investing world’s ultimate one-two punch. The fact that two of the financial world’s most respected investors are in precious metals certainly isn’t lost on precious metals aficionado Daniel Kroll.
“Some of the world’s most sophisticated investors like Warren Buffett and Bill Gates have been moving into precious metals,” says Mr. Kroll, president of Advanced Precious Metals Corporation (APM). “We believe the current economic climate dictates that people should be investing in precious metals as part of a diversified portfolio.”
APM, based in Toronto, deals exclusively in the bullion markets, specializing in providing clients with reliable service and up-to-date information and advice on the purchase and sale of precious metals.
Citing the uncertainty and chaos in the financial markets, Mr. Kroll believes the time is ripe to invest in gold, silver, platinum and palladium, not only for their safe-haven qualities but for significant potential for capital gains.
“We’re not telling anyone to put in their life savings or bet the farm on precious metals, but it makes sense to complement other investments with precious metals,” says Mr. Kroll, a 12-year veteran of the commodities markets who graduated from York University with an economics degree.
“We don’t suggest anyone put all their money into precious metals. The World Gold Council recommends a 10-20% asset allocation in precious metals. We suggest investors maintain diversification into other markets, creating stronger protection of capital.
“We offer investors a choice of taking physical delivery of precious metals or having their precious metals stored for a nominal fee. We also offer a leverage program where the investor doesn’t have to put up the entire amount.”
Mr. Kroll reels off several key factors that suggest we may be in the initial stages of a raging bull market in precious metals.
* The weakening U.S. dollar: With the American buck sinking like a rock, gold, which is traded in U.S. dollars becomes comparatively cheaper for the rest of the world to buy. The result is significant upward pressure on gold prices.
* Gold and silver prices retreated at the start of the Iraq war, presenting excellent buying opportunities. With traders turning their focus to decreasing supplies, prices are starting to move up again. (The first quarter of 2003 saw an increase of 25% in the manufacturing use of silver, used in everything from light-sockets to computers to automobiles and disease-killing medical uses.
* The introduction of gold-backed currencies like the Euro and Dinar signals the re-monetizing of gold.
* The current negative real interest rates in the U.S., a scenario in which the Consumer Price Index exceeds the U.S. federal funds rate, favours gold. Historically, when this trend has arisen, gold has moved higher in nearly every instance.
* The dreaded bear market:
Equity markets have plunged dramatically over the past two years. Many analysts believe it will get significantly worse.
* Erosion of investor confidence in the stock markets: Corruption, indictments and criminal activity involving public companies and investment houses have reached epic proportions not seen since the Great Depression.
* A trend is already in place where precious metals have outperformed all asset classes, except precious metals mining stocks, in 2001 and 2002. The average increase in gold has been 33.2% based on 25 industrialized nations (when accounting for currency depreciation) while the average stock market decline based on the indexes has been 17%. The differential is an incredible 50.2%.
* Money markets have been yielding about 1.67%.
* Bull markets in precious metals have a historical record of providing investors with enormous upside. During the precious metals boom from 1971-80, gold spiked from $35 US per ounce to $800 and silver catapulted from $2 US per ounce to $50.
* China – A new metals exchange just opened, and changes in Chinese legislation open a new market to more than one billion people.
While the yellow metal tends to get the most attention, gold is not all that glitters, according to Mr. Kroll. He projects that silver, which recently traded in the $4.80 range, may have even more upside potential than gold.
Buffett and Gates aren’t the only financial heavyweights betting on silver. Legendary U.S. fund manager George Soros has been buying huge quantities of silver.
“I like silver, it could double or triple,” says Mr. Kroll. “I like silver because it is used for manufacturing and supplies are low. For 10 years in a row, more silver has been used than produced . . . and the current price around $4.80 is below the cost of mining.
“I think gold’s next level is $380, then $400 and up from there, while gold is now trading at around $340. There are several prominent gold and economic experts who are predicting gold prices anywhere from $500 to $2,000 per ounce."
Investors requiring further information about the opportunity in precious metals and an investor kit may call APM at 1-866-901-0600 toll free.
“We provide a full range of services to clients,” says Mr. Kroll. “We are very excited about the future of gold and silver and we are expecting a lot more excitement.”
All of the staff at APM are knowledgeable and professional in aiding clients with their transactions.
If you are interested in receiving an investor’s kit, please call toll free 1-866-901-0600 or email to email@example.com
When you request an investor’s kit, you will automatically be entered in APM’s monthly draw for a half-ounce gold Canadian Maple Leaf coin (you must be a minimum 21 years of age and have a minimum $5,000 in investment capital).
Disclaimer: Past performance is not necessarily indicative of future results. The risk of loss exists in precious metals trading. Any statement of facts herein contained are derived from sources believed to be reliable but are not guaranteed as to accuracy nor do they purport to be complete.