In my work as a metals broker I have an almost constant refrain: Trust no one except your own judgment. So let us take a look at a few facts we can all agree on and let the silver chips fall where they may.
Industrial use of silver is absolutely necessary. And while consumer buying may be down right now, it is certain industrial application will only proliferate and bloom into more and use and production. Think of it as a sort of giant Pac Man eating up supply.
China is monetizing its citizens with gold and silver. Where once private ownership of bullion was a serious crime it has now become national policy to exhort that vast population to buy silver, buy gold, and buy it now. Reserve currency anyone?
Historically, silver trades at a 16/1 ratio to gold. And we are talking about a lot of history so remember your Shakespeare, “What is past is prologue.” With a current price ration of 63/1 silver is a bargain.
At the end of the day inflation is very easy to understand: trillions of dollars poured into the money supply dilutes the purchasing power of all dollars. Regardless of drop in prices due to inventory, which creates a false perception of sensible deflation, the actual relative value of the dollar has dropped over 7% so far this year. Whoever is feeling bullish on the dollar please take one step forward…
The gold locomotive has left the station and it is not coming back and silver is the caboose. I know that sounds flippant but the new bull metals market is being supported by much vaster, deeper, and more determined markets (read China, India, our own domestic market, etc.). Silver is going along for the ride.
The Chinese curse, “May you live in interesting times,” has found fuller expression day by day. Every generation feels especially tested but, by gosh by golly, these times are unprecedented in so many ways it boggles the mind. And that is what is called uncertainty – the mother’s milk of precious metals investing. Does anyone have any real idea where we are headed? How could they, there road no maps for this undiscovered country. Thus faith-based currencies blow thither in the wind while real gold and silver money finds purchase within our hearts.
So I offer for your consideration: It seems that a little prudent hedging in an undervalued silver coin or two (or hundred) makes much more sense than dollars. What is the realistic downside? After all, on the other side of currency (and all paper-backed assets and securities) lies the darkest abyss of fiat nothingness.
Aaron Kutchinsky is a lecturer/seminar leader and expert precious metals broker on the subject of proactive and timely personal and community economic protection and preservation.
Salvation Investing is the concept, and understanding, of absolute and urgent protection of your equity investments, worldly assets, and personal safety: Gold, silver and other precious metals are real money, wealth, and treasure to safeguard and firewall you, your family, and your community against the probable and catastrophic collapse of US/Global currencies and financial structures.
http://www.salvationgoldandsilver.wordpress.com
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