Monday, May 23, 2011

Gold is King

After the silver/oil pullback the markets could have discounted gold too.  Platinum has been, but gold remains up.  This is because gold is the official asset of leverage on the system.  Silver and platinum may see heavier investment come the next decade, but the trust has already been placed on gold.  Whereas the financial system of old accepted not only gold in bank vaults but silver and gold too, today it is only gold that central banks use to loan out as an income stream.  This is why its price must remain high, for if the loans collapsed, so would finance.

Gold has always been a wise investment, whereas platinum is only gaining momentum.  Silver's production has not peaked like the other two, and that is why a boom in platinum could come at any time, although investment seems to ignore platinum.  All three are direct investments in technology, but it is only gold that sees itself officially as monie.  This is why gold has the ultimate advantage.

Platinum could be cornered in a hurry, as it is a very small market, but the popular investment remains gold.  Silver is very undervalued on a price per ounce basis, but gold still remains the investment de jour.  Even if one of the two other metals catch a bid, it will be bullish for gold.  Gold is and will remain King of the financial universe.

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