Tags: Investors | Equities | Silver | Gold

Investors Ditch Equities, Flock to Silver, Gold

Thursday, 09 Jun 2011 08:29 AM

Gold and silver are in demand, outperforming the S&P 500 by 8 percentage points over the past month as traders snap up precious metals over stocks.

Debt concerns in Greece, low interest rates and a weak dollar in the United States coupled with the end of a second round of quantitative easing are turning precious metals into the safe haven of choice for investors.

“Gold is more valuable at this juncture as the flight to quality accelerates,” says Stephen Weiss of Short Hills Capital, according to CNBC.

gold200APuseme.jpg
(Associated Press)
“Global equity indices will all be in decline as multiple growth engines sputter: U.S., China, Eurozone and Japan. Only place is commodities, and specifically gold, because that is where perceived safety and momentum will be.”

Quantitative easing, the Federal Reserve’s $600 billion bond buyback program designed to spur stock-market activity, ends this month, and some are worried stocks will take a dive without the Fed influencing equities markets.

“Gold is a currency and its re-monetization is accelerating,” says Brian Kelly of Brian Kelly Capital, CNBC adds.

“Stocks will not perform well in a stagflationary environment. China's next export is inflation, with a slow growth global economy profit margins will get squeezed.”

Bottom fishers are back in the precious metals markets as well.

Goldman Sachs notes that commodities prices fell 10 percent from April highs, making them more attractive.

"We continue to expect that economic growth will likely be enough to tighten key supply-constrained markets" in the second half of the year, the bank reports, according to the Associated Press.

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Gold and silver are in demand, outperforming the S P 500 by 8 percentage points over the past month as traders snap up precious metals over stocks. Debt concerns in Greece, low interest rates and a weak dollar in the United States coupled with the end of a second round of...
Investors,Equities,Silver,Gold
258
2011-29-09
Thursday, 09 Jun 2011 08:29 AM
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