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 that anyone put all their money into precious metals. The World Gold Council recommends a 6-16% asset allocation in precious metals. We suggest investors maintain diversification into other markets, creating stronger protection of their 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 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 (as of August). 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%.
* The historical precedence of precious metals acting as an excellent vehicle to protect and preserve capital in adverse and uncertain times.
* Demand for gold, silver and platinum currently outstripping supplies.
* Political instability and uncertainty (ie. the threat of war) has put pressure on international financial markets.
* Many financial experts who expect the U.S. dollar to come under pressure which would be favorable to precious metals prices.
* J.P. Morgan and other banks are holding massive short derivatives positions in precious metals that could eventually trigger an escalation of the spot price.
* 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 U.S. per ounce to $800 and silver catapulted from $2 U.S. per ounce to $50.
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 $4.50 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.
"We think there is significant upside potential in the price of silver and it could potentially double or triple,” says Mr. Kroll. “A huge spike in the gold price could be triggered somewhere above the $330 level (it recently traded in the $320 range). There are several prominent gold experts who are predicting spot prices anywhere from $500 an ounce to $2,000 an ounce. We believe silver will follow and even outperform gold."
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're very excited about the future of the precious metals market, and we love teaching clients. We like nothing better than seeing our clients making money."
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 or to receive the APM Monitor (a brief commentary on global, political and economic events), please call toll free 1-866-901-0600 or email to firstname.lastname@example.org.
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.