15 April 2011

Precious Metals Trend

I've been seeing a lot of mainstream/dino-media saying that precious metals are over bought (of course yours truly doesn't even have any horded, so I do welcome a sell off).  However, as the investing saying goes, the trend is your friend (provided it isn't a bubble). 

So, reading something like this from the Daily Reckoning, backed up with this from the Telegraph, it seems like gold is not yet reaching consumer saturation, at least from a sound money perspective.  

Thieves will obviously steal anything of value, and insurance companies must limit their liability to settle their customers losses (else it doesn't fit their business models).  It is ironic that the institutional investors of insurance companies (at least in England) think the trend is still up, when they consider the remote possibility of telling their customers to check their policies and update their coverage limits.  The more coverage, the more risk, and thus the more you pay which makes sense.  That said, you have to think that if the InsCos want more money in policy form to cover your gold jewelry and coins, what does that say about the actual trade itself? 

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