During the last great gold rush in the late 1970’s, only investors from the United States and the better part of Western Europe were able to participate. That was because back then, most other nations did not allow physical ownership of gold as it was either illegal to own, not available for investment or not in public demand. Many of the world’s countries including Russia, Eastern Europe, China and India, as well as all other Asian nations, South America and Mexico were incapable of participating at the time.
Back in the 1970’s, basically we had generations of savers, So many of the people within Western Europe and America that might of actually had the chance to invest, either didn’t or invested too late into the last phase of the precious metal market cycle, losing more than they gained. The investor mindset today, is much different from the 70’s. Today there are no savers, as banks are not handing out any interest. Therefore, there is no fiscal incentive to allow banks to hold and use your money any longer. Many people are now privately investing instead.
Furthermore in today’s demographic; the current market demand structure shows the entire world’s population is now capable of placing their own trade orders. These trades can be executed over the phone with brokers, or even simpler, going online with a few mouse clicks to purchase investments or place trades through their own brokerage accounts. Today there are more and more people becoming billionaires throughout the world as well. These new billionaires have deep pockets capable of large-scale investments. Many countries now are producing new billionaires coming from Russia, China, India, Africa, Asia and South America. In many of these countries, investing has actually become a national sport.
The best news of all is that this time around, the entire world is chasing the same limited supply of gold and an even more limited supply of silver to invest in compared to the 1970’s gold rush. There is only a finite quantity of gold above and below ground. There is physically even less silver available, above and below ground. Due to its high demand in industry, part of it is consumed, and therefore cannot be reclaimed.
The world is now into the second phase of this buy brics onlinecentury’s precious metals bull market. Now these new large-scale investors are bringing in money and buying large quantities of physical metals. The general public as a whole still doubts these investments. They discount them as un-worthy investments in general, apparently not viewing them as tool to hedge assets for an un-stable economy. Over the last 10 years the central banks of the west have concentrated on selling their gold reserves, while within the last few years all central banks from the east have been accumulating.