The silver market now and looking ahead.
We all know that silver is a commodity in the bell-whether asset class.
In most cases, commodity prices spike from some form of natural disaster. As a result, commodity investors and brokers are sometimes viewed as vultures capitalizing on grief.
Silver, like gold will probably make a huge move up in price if the stock market were to tumble down significantly over a protracted period of time, and the reason?
Very simple, with world wide investments at over 28 trillion dollars, if anything happens to truly scare investors, there will be a record amount of selling from risk investment and a record amount of buying into safe investments. Precious metals today offers protection no other asset class can match.
Precious metals cannot default like a corporate or government bonds.
Precious metals investors are not vulnerable to corporate embezzlement.
Precious metals don’t go out of business or file for chapter 7, 11 or 13.
So if the stock market tumbles, doesn’t it make sense there will be a huge amount of safe haven buying in the silver market?
Does this mean that we want the stock market to crash? absolutely not! But what if the markets do crash? what would happen to your investments and your retirement nest egg? A question most of us wan’t to ignore until 50-90% of our savings/net worth is lost in a few short days/weeks/months.
I want you to know this in greater detail.
I’m sure you probably agree that the big institutional investors in the form of government intervention (The Fed) (The world bank), hedge funds, insurance companies, retirement fund and mutual fund managers and banks have more influence in investment pricing than the average individual investor.
What you may not know is how all these huge institutions are fully vested, and what their portfolios look like.
I’m going over this because I have seen this before. Something bad happens to the market and gold and silver prices also go down but several weeks later, precious metals prices rebounded up and moved up much higher.
What do we think happened?
Portfolio managers were forced to sell their precious metals holdings to meet portfolio margin requirements.
And while this liquidation was going on, the market makers were dropping the bid.
Once the margin selling was over, precious metals prices recovered quickly, that is all.
So if you see a huge drop in the stock market and gold and silver prices, you have to know that silver and gold liquidation is mostly from highly leveraged institutional players liquidating their precious metals holdings to maintain other equity margin obligations.
I am totally convinced and have made the decision that if I see the metals go significantly lower with a sudden steep drop in the stock market, that the dip in prices will not last long and should be viewed as a major buy opportunity to get in or to fatten up the position.
However, long term, over the next several years if the stock market never crashes, and the entire world economy soars with help of the widening of the Panama canal which is almost complete and expected to be a world wide game changer, than there will most likely be a huge world wide run for resources and what do you think that will do to silver prices?
What will significantly higher silver prices force institutional investors that have huge short positions in silver?
What will the Market makers do when they see huge orders to buy silver from banks they believe are short the market followed by a record amount of buying from people that have sold out of the stock market known as safe haven buying?
What will short term speculators do when they see silver prices soaring? What will the industrial sector that uses silver to make their products do to protect themselves from further price increases and to assure they have enough silver to continue to manufacture their products?
Ultimately it doesn’t matter what the catalyst is that triggers higher silver prices.
If silver prices suddenly spike, a huge short position will have to be covered and that will attract world wide speculation and also force industrial users of silver to increase their inventories to make certain that there is enough inventory to maintain production.
Now ask yourself right now:
With silver supplies at historic lows, industrial demand for silver at historic highs, a U.S. dollar in the nose bleed section, a record short position in silver, and the stock market at record highs, is there an enormous opportunity in silver to make an incredible return on investment if you have staying power, are patient and have the nerve to not second guess yourself.
In the last five years we saw silver prices tumble from $47 to where we are right now at $16.
The last time silver prices were at $5 an ounce, gasoline prices were a dollar a gallon.
Right now gas is at $3.00 a gallon and regular just over $2.00 a gallon which should put rock bottom silver prices at $10-$15 an ounce.
This means silver prices are very low and represent a great opportunity to attain an above average return on your money “SAFELY” and safe investments and great returns usually do not appear at the same time.
This is why today’s investment silver is such a rare opportunity.
Right now is the time for retired investors and investors approaching retirement to take full advantage of the current strength of the stock market to lock in profits and move that money into safer guarantee’d annuity programs. Stock market has rebounded dramatically and is now showing signs a potential meltdown.
But for the senior investors and all other investors with ample income, it may be even smarter to jump into the metals market now and move into the annuity programs after you catch another big ride.
But the key to proper bullion silver investing is to have a platform that offers you quality full service and account management at a deep discount instead of the typical precious metals trading platform offering high pressure sales tactics high sales fee’s with unsuitable margin recommendations.
For a more information and to receive access to our top recommended bullion dealer, complete the short form on this page to be contacted and provide more information on this opportunity. We have analyzed every major bullion dealer/broker in the US and even offshore companies and we are confident that this bullion firm will provide the best trading rates you have ever seen.