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Gold market commentary by James Turk - Founder of GoldMoney

Why should you invest your money in Gold and/or Silver?

Gold Shines for the Ninth Consecutive Year!

Gold has now climbed nine years in a row against the US dollar. It appreciated 23.9% in 2009, which was a dazzling performance but only gold's third best annual gain this past decade. Gold also rose against seven other major world currencies, declining last year only against the Australian dollar. The following table presents the numbers for this decade:

Gold % Annual Change
	USD	AUD	CAD	CNY	EUR	INR	JPY	CHF	GBP
2001	2.5%	11.3%	8.8%	2.5%	8.1%	5.8%	17.4%	5.0%	5.4%
2002	24.7%	13.5%	23.7%	24.8%	5.9%	24.0%	13.0%	3.9%	12.7%
2003	19.6%	-10.5%	-2.2%	19.5%	-0.5%	13.5%	7.9%	7.0%	7.9%
2004	5.2%	1.4%	-2.0%	5.2%	-2.1%	0.0%	0.9%	-3.0%	-2.0%
2005	18.2%	25.6%	14.5%	15.2%	35.1%	22.8%	35.7%	36.2%	31.8%
2006	22.8%	14.4%	22.8%	18.8%	10.2%	20.5%	24.0%	13.9%	7.8%
2007	31.4%	18.1%	11.5%	22.9%	18.8%	17.4%	23.4%	22.1%	29.7%
2008	5.8%	33.0%	31.1%	-1.0%	11.0%	30.5%	-14.0%	-0.3%	43.7%
2009	23.9%	-3.6%	5.9%	24.0%	20.4%	18.4%	27.1%	20.3%	12.1%
Average	17.1%	11.5%	12.7%	14.7%	11.9%	17.0%	15.0%	11.7%	16.6%

As invenstor I can say that Gold is one of the world's best performing asset classes this decade and the increasing number of news reports and other media coverage is evidence that gold is still going to rise. Consequently, now a good strategy is to continue to accumulate gold, nor selling it but keep buying it every 2 months or every quarter if one of these alternatives better suits your budget.

View gold to be your savings. Saving money is always a good thing, particularly when the saving can increse your money, as is clear from the above table.

As I noted one year ago: "Some months and even some years you will be accumulating gold at a higher price, and at other times a lower price. But over the long-term your consistent accumulation of gold will be averaged in at a good price."

Now it's not yet time to take profits, but as well as gold has done this decade I expect that gold will rise much further. You can see its trend vs GBP in the last decade in the following graphic:

Gold price in GBP in the last 10 years

Don't miss this great opportunity, instent your money in Gold NOW!

While 2009 was a good year for gold, it was a great year for silver as well.

Silver rose against all nine of the major world currencies, including a 53.0% gain against the Japanese yen and more spectacular gains ranging from 42.6% to 49.4% against five other currencies. Its results are presented in the following table.

Silver % Annual Change
	USD	AUD	CAD	CNY	EUR	INR	JPY	CHF	GBP
2001	-0.1%	8.5%	6.1%	-0.1%	5.3%	3.1%	14.4%	2.3%	2.7%
2002	4.8%	-4.6%	4.0%	4.9%	-11.0%	4.3%	-5.0%	-12.6%	-5.3%
2003	24.0%	-7.3%	1.4%	23.9%	3.2%	17.7%	11.9%	11.0%	11.9%
2004	14.3%	10.2%	6.5%	14.3%	6.4%	8.6%	9.6%	5.4%	6.5%
2005	29.6%	37.7%	25.5%	26.3%	48.1%	34.6%	48.8%	49.3%	44.4%
2006	45.3%	35.3%	45.3%	40.5%	30.4%	42.6%	46.7%	34.8%	27.5%
2007	15.4%	3.7%	-2.1%	7.9%	4.3%	3.1%	8.3%	7.2%	13.9%
2008	-23.8%	-4.3%	-5.7%	-28.8%	-20.1%	-6.1%	-38.1%	-28.2%	3.4%
2009	49.3%	16.1%	27.6%	49.3%	45.0%	42.6%	53.0%	44.9%	35.0%
Average	17.6%	10.6%	12.1%	15.4%	12.4%	16.7%	16.6%	12.7%	15.6%

The above table makes clear silver's volatility. Silver also fits well within a long-term accumulation plan, but only if you are prepared to accept the volatility that comes with it. The reward for doing so will be that silver outperforms gold over the long-run, as is already becoming evident. By comparing the average annual rates of return in the above tables, silver has done better than gold in five of nine currencies, and is not too far behind in the other four:

Silver price in GBP in the last 10 years