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?
We believe silver is undervalued and is ready for a price spike. In the near term it could be vulnerable but in the long term will make a great investment. Silver compared to gold is cheap and because it is a smaller market, prices are more volatile. This will serve investors well if they are able to purchase silver now as the percentage increase will be more than gold. Silver being the poor man’s gold is much more affordable to the average person and owning it will be much needed protection once inflation raises it’s ugly head and it will.
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Hi All
Loving your work on unlocking the secret codes the silver market holds. I am a massive believer of Silvers potential and ability to change peoples lives in the future. There is a web page called http://www.preciousmoney.co.uk where you can buy silver bullion coins at .999 and a Facebook page under Precious Money Ltd where you can have your say on the silver market, the economy in general and any other related views you feel the need to release from your chest. Remeber Precious Money Ltd!!!
Here are some good charts. It looks like it has paid off to trade up your silver for gold when the ratio is in its low 40′s. Will this be the time that the ratio makes a big move lower? I don’t know. But the ratio is off its highs from the 70′s and we got about 20 more ounces to go before it hits the low 40′s. Keep buying that silver! http://taoeconomics.com/content/silver-gold-ratio-its-way-back-down
It seems to me that one of the factors influencing silver prices recently has been the growth of ETF holdings of this metal. A chart of this growth can be seen here.