Well I have just about doubled my money from when I got into silver at about $18 an ounce last August, but don't get discouraged if you haven't joined in on the fun yet. There is still plenty of room for this puppy to grow. See, even though we hear about it every time Gold makes a large move (and sometimes silver too, but only when it's headed down) the mainstream media does an excellent job of leaving out silver and all its glory, for the majority of Americans to hear about. Which I think is an atrocity to the public! Some of you, will more than likely never be able to buy Silver for less than $30 an ounce! And just maybe, if something had caught your attention on MSNBC money, or some other program, you might have been interested enough to check it out. Maybe that's just wishful thinking on my part, but how can you know if no one ever talks about it! And that is exactly my point.
We are nowhere near the end of this secular bull market, it has only just begun. And it is gonna be exciting! As I write this, Gold is teetering underneath its all time high of $1433 by a dollar! And Silver is actually at a new 30 year high of $34.50 as of today. If I had a little more capital (investment cash) and more patience I would be in the oil game right now. That is about to blow up in our face, and send gas prices through the roof! Now that does indeed suck for most people, but over the course of history, Silver and Gold have done very well in rising in value compared to oil. So if you own some and keep accumulating them on a regular basis (as I do, and encourage everyone to do) then you will be just fine. But if you keep your dollars in cash, you can guarantee you will be losing purchasing power on a weekly, and even daily basis.
But back to the main point, it's very easy to tell when something is overbought or becoming what some would call a "bubble". Just ask yourself a few questions. Have I seen or heard about it on TV? Have I overheard anyone at work, friends, or strangers out at a restaurant or bar talking about it? If you asked 100 people if they owned even an ounce of Silver, or know anything about how rare it is, would even one person say yes? Just think back to the tech stock boom and bust, or the real estate boom/bust. Everyone towards the end was either talking about it, or making money off of it. Those that do not rely on the fundamentals get burned 99.9% of the time, and usually show up late or at the end of the game.
Obviously we are nowhere near a bubble in Silver and the price has been rising significantly for over the past 10 years now, due to solid supply and demand fundamentals. And the fundamentals have never been more bullish for precious metals, there is already a supply deficit in Silver and the media hasn't even started mentioning it on a large scale! As our financial system deteriorates on paper, and the majority start shifting there assets into Gold, Silver and Platinum the price will explode! There are already shortages of the shiny white metal now, and the shift has already begun.
Just ask yourself this simple question. Would I rather buy Silver now at $35 an ounce, and rely on the fundamentals and take a chance. Or would I rather buy when it's every days' news headline, and feel comfortable because everyone else is doing it at $100 an ounce? Believe me, it is gonna happen.
For thousands of years Gold and Silver have been money, even in Chinese the word Silver means money. Paper currencies like our Federal Reserve Note, which is not even money, it is a debt instrument (if you don't believe me pick up a dollar bill and read it) have only lasted an average of fourty years, from its inception to its demise. Well it's 2011 and we got off of the gold standard in 1971, it is time for change. But I bet Obama wont see this one coming ;)
Take care and have a great day!
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