Gold & silver is currently retracting in celebration over the end of the War on Terror. Osama Bin Laden is dead the world is now safe. These sentiments help drive down gold & silver over the last 3 days. It has a familiar ring to it. Remember? Exactly eight years prior to the day of Bin Laden’s death a President lands on the deck of the USS Abraham Lincoln ,standing in front of a Mission Accomplished banner announces, Major combat operations in Iraq have ended. In the battle of Iraq, the United States and our allies have prevailed.
Fast forward to May 1, 2011 another President announces the death of Bin Laden and the nation erupts into spontaneous rejoicing. The markets react by going up and metals dropping in price. Yet, just as we learned from the previous pronouncement of Mission Accomplished the smart money bet, this is just the beginning. Global terrorism will continue. The economy will continue to falter, inflation will continue, demand for gold & silver will continue powered by emerging markets.
Now that the world is safer the perceived need for a safe-haven is lessened. Many see this as a time to take profits and move away from metals. This positions gold & silver in a similar buying position as we saw at the beginning of the year. Take this current dip as your indication to add to or start a Tangible Asset Portfolio. We believe the other pressures on gold & silver will drive the price upwards for the long-term.
Read more: When Investing in Gold is a Good Idea