Archive for February, 2010

Gold and silver both have been hit hard.  The dollar, in a surprising move is on the way up?  Banks are paying back their TARP “loans” and the global economy is questionable.  Maybe all that money that the government printed isn’t going to suck the dollar into oblivion.

China isn’t giving the bullish reports (although the china bulls are calling for amazing growth over the past 2 years) there is a slow down on the horizon it would seem.  The stock market is falling backwards, the dollar is advancing and precious metals like silver and gold are falling by the wayside.

Just check out this article about SLV and GLD ETFs. They have been slammed along with the price of silver and gold. Once what was on a tear is now on the decline. So what gives?

Could it be that all the hedge funds, mutual funds, and general investing public is taken profits after a rediculous upswing that cause outrageous ratios that didn’t make sense? PE’s that made 10 years down the road, but really, willing to by GE at a PE of 30? Doubtful.

OK, so we exaggerate.

But honestly, with the worldwide economy cooling, is it wise to take your money out of precious metals? We thing not. We think it’s a perfect time to buy precious metals. Prices are retreating all over the place, because the economy isn’t as great as everyone thought it was. Who cares? Why not get in on some deals and buy silver at these reduced rates while China and India prepare for the growth they promise?