This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forget the Economic Data, Buy Gold and Silver

By adding gold and/or silver to your portfolio, you'd be reducing your exposure to paper money volatility. Moreover, the fundamentals for these precious metals are strong. Granted, they have not been performing well in recent times. But the indicators we have say the future of these metals will be good.

For instance, in a recent report from the World Gold Council, China accounted for 26% of the global private-sector gold demand in 2013 thanks to low gold prices.

The report also contains a Chinese consumer survey, which says that 60% of Chinese gold consumers expect the price of gold to increase over the next 12 months. This means that we might see more gold going toward the east over the next 12 months. The increasing demand for gold in China suggests that gold is currently undervalued - which is evident in the slow economic growth we are seeing.

In addition, the rapid growth that the solar industry is seeing also means that silver is well positioned for a surge. This is because, according to the Photovoltaic Technology Division of the U.S. Department of Energy, "silver paste is used in 90% of all crystalline silicon photovoltaic cells, which are the most common solar cell."

Moreover, with the latest report from Intergovernmental Panel on Climate Change, or IPCC, saying drastic actions have to be taken to limit green house emissions so that global temperature can be maintained at the safe two degree Celsius below pre-industrial levels, we can expect the solar industry to grow at a faster pace over the next few years. In the end, silver will benefit.

Long story short, while the government might have announced impressive economic data, it's not enough just yet to show that the economy is moving forward. So it shouldn't stop investors from hedging their portfolios.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 0.00%
FB $105.52 0.10%
GOOG $748.15 0.00%
TSLA $229.64 0.00%
YHOO $33.16 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs