Sunday, May 1, 2011

Is silver still a good investment?

While The Federal Reserve is still printing money you bet it is!
There will be many who will tell you that precious metals are in a  bubble and to stay away from it but do not listen to them. Why am I saying that?
  • Do we have rising prices on commodities? Yes
  • Our national debt is still rising? Yes
  • Is there a currency war going on? Yes
  • Are JPM et al covering their shorts at this high prices? Yes
  • Is APMEX paying $3 over spot to buy silver eagles? Yes
  • Has US Mint run out of  silver Eagles coins? Yes
  • Is silver still in backwardation? Yes
  • Has Bernanke acknowledge there is inflation? Yes
  • Are the interest rates still  at all time low ? Yes
  • Are Silver investments still at the bottom of the chart compared with other investments vehicles?Yes
  • Do we still have a very low percentage of investors in silver today? Yes
  • Did Scotia Mocatta transferred 25 % of silver from " Registered" to "Eligible" status, a 45% reduction in physical silver? Yes
  • Is China unloading US debt at an increasing speed? Yes
  • Does the world looses confidence in the dollar? Yes
  • Is the dollar on the brink of loosing the world currency status? Yes
  • Are you the only one in your family or friends circle understanding the silver investment besides your local coin shop dealer? Yes
  • Are your friends and family still give you the crazy look when you talk about it? Yes
  • Do I really need to keep going? NO

The above picture shows clearly what the dollar has become today and the sooner people understand this the better will be for them. The dollar will be soon dead, and it is not a matter of how but when.
Below is a chart of silver's performance for the past ten years if you still didn't get the picture.

And if you are still not convinced than see another picture below of dollar's performance versus PM.

 Now hope you are invested in PHYSICAL Silver that is why you are reading this post today. Do not get fooled to invest in SLV or other paper silver investments, because this is just an illusion of wealth that may soon go away!  Buy Silver Eagles, if you still can find any, silver bars: Engelhard and Johnson Matthey my recommendation since the big brand names are better for future dealing and the Eagles may become a value in numismatic since there is a real shortage going on, you may also get your hands on some Max Keiser's coins, because he had started this fight against the JPM who holds the largest short position in silver and suppressed and manipulated the price of silver for many years.
Below are the pictures of the  physical silver I recommend for you to buy.



No, it is not to late to get in the game. But it will be soon....
And you know it will be to late when the inventory of silver just disappeared or the the dollar becomes the bathroom accessory I just pointed out to you.
As many will tell you price don't matter, buying silver is an insurance for your well being.
However I will tell you we are entering a zone not easy for the faint heart. And I am saying this because you will see wild swings in silver up and down. If you are there for the long run and you are buying for investment, don't look! It is time to sell only when everybody and their cat is in this investment, which is not now by far! Price doesn't have nothing to do with it, as many try to compare today's price with the 1980 Hunt brother's price from which point it only went down. So don't get fooled in looking at prices when trying to predict a top.
If you are buying to make some money than the best thing to do is to protect your physical's down days buying calls on the silver double short ETF(ZSL) just when you think the silver has gone crazy up, than sell them for a profit when it does drop as you thought it will, buy some more physical with your profit and repeat the game. You can buy some puts on the ZSL as well when silver has a big down day and sell when silver goes back up, just make sure you keep buying more physical with your profit, as the physical silver and gold is the only real money.

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