Pat Gorman, President & Owner of Resource Consultants, will provide you an education on the subject of precious metals investing. There is such a concern about the economy, I felt this subject could use some light, instead of smoke and heat.

This is the 3^rd installment in a series of 16 articles on acquiring gold and silver for your investment portfolio.  The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 (800) 494-4149 or 480-820-5877 6480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

Silver––Everyman’s Money

Silver has also been a monetary* means of exchange for several thousands of years. Silver is much more abundant than gold, and therefore less costly and valuable. Yet, silver is considered by many to be the form of reserve money that most of us can afford. Silver is more accessible to the average person. Until 1965, the US government produced most of its coins with at least 90% silver content, but this practice was abandoned that year. Perhaps one of the reasons the government changed this policy was to protect itself from being fiscally responsible to the public for reserves of silver to support the paper money. You probably don’t recall when the bills were silver certificates––and could be redeemed––by law––for silver.

From the current indicators in the marketplace, fall of 2009, there seem to be several factors that make this a most propitious time to accumulate silver bullion coins before silver becomes a scarce commodity: inventories are lower than any time since 1950. Demand for silver is exceeding supply at this time, unequalled since 1978.

Platinum––For the Serious Investor

Platinum is the most precious metal**, and is five (5) times scarcer than gold. Platinum is used primarily in automotive catalytic converters, and utilization has increased more than 50% over the last ten years. Now that the whole world is concerned about air pollution, its use in the auto industry will continue to grow. However, now the largest market for platinum is for jewelry––more than 35% of the total platinum utilized today. Increased purchases should occur as platinum bullion coins are being minted and circulated at a low premium.

* However, it is not now a “monetary” metal, and probably will never be again in our lifetime––except in India. Silver is strictly an industrial metal and most likely will fall dramatically with other commodities during the next depression. There is lots of silver and it’s very unlikely that it will ever be scarce, though it may rise in price for a short period––i.e., in a time of hyperinflation––but during the next depression, it may just as well drop to the price of $0.25/oz.

**The previous paragraph may also apply to platinum. It would probably appreciate faster than gold if inflation occurs in the economy as inflation occurs in the monetary system. However, if the economy has seen the largest proportion of inflation that’s expected and also experiences a deflation of the economy––while the Federal Bank hyper-inflates the monetary system (paper currencies) in an attempt to keep the worldwide economy from crashing––then platinum and silver would most likely drop in value while gold rises. When the next depression occurs, platinum would drop while gold would retain a relatively high relationship to all commodities.

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