Political hot air will not reinflate your savings or 401k accounts. Nor will printing more paper fiat money which will devalue due to excessive supply and excessive public debt.
To quote the Bard "All that glisters is not gold."
For some of my friends who are "silver" bugs......
Supply and demand for silver bullion (both as a store of value and as an industrial commodity) suggests a future silver shortage. When? No one knows for sure.
- I'll be watching the "shorts" to see if they can cover their positions over time.
Silver prices will eventually explode...but in a gradual, slow-motion upside move as investors and users slowly eat up the world's visible supply of silver bullion (about 500 million ounces).
- The 1st 100mn oz's (mostly privately held) will be the first to take profits and disappear between $60 and $100 per oz.
- The 2nd 100mn oz's will disappear by $250 per oz.
- The 3rd 100mn oz's will disappear somewhere between $250 and the current spot price for gold.
The owners of the remaining 200mn oz's of silver will not "take profits" at any price.
Bullion (silver or gold), stubbornly, will survive as the last and best store of wealth compared to most fiat (paper only) currencies like, let's say...the Zimbabwe Dollar* or the Obama Dollar.
*Of course, I could be horribly wrong about this despite toilet tissue currently being more valuable than Bobby Mugabe's Z$ while both items are useful for the same purpose thanks to Marxist-socialist economic brilliance.
Thursday, 1 October 2009
Bullion................from Rico
Subscribe to:
Post Comments (Atom)
1 comment:
No, I think you're quite right. Until recently, the gurus were suggesting a balance of 75% gold / 25% silver for a private citizen's fallback stash. Today the typical advisor is around 50% gold / 50% silver.
Because gold has become so precious, it's become somewhat illiquid, whereas the market for silver is quite active. There's no shortage, for now. But I wouldn't bet on the continuation of that happy circumstance, federal money manipulations being what they are.
Post a Comment