Increasing government regulation is one of the major reasons that investors continue to flock to precious metals investments, despite their volatility. Often huge increases in precious metals valuations has the opposite effect, but few investors seem to be selling their physical holdings these days. To the contrary, many are jumping into the precious metals fray, seeking a new way to protect their economic futures.
With debt liabilities ever increasing on the world stage, astute investors see their only plausible play in silver and gold. The United States continues to drive up liabilities, totally unfunded, while many other world powers, such as those on the European continent, are in even more dire straits. Debasement of paper currencies is, so far, the only solution to these problems, both here and abroad.
Regulation is the major method way employed by governments and banks to discourage individuals from acquiring physical precious metals stores. Precious metals are currently the best, if not the only way to retain private wealth in economies with unbacked currencies. This includes virtually all world economies.
France, the Netherlands, United Kingdom, Austria, Vietnam and the United States have all recently enacted regulations that actively debase individual abilities to purchase precious metals. These actions include restraint of trade, intervention in specualtive market action, bank transfer requirements, asset seizure and caps on amounts of precious metals purchased in single transactions.
Tracking, control and supression of individual freedoms to regulate wealth seem to be an everyday occurence. Maybe this is the reason that silver and gold purchases are not slowing, even at record prices.
