Big Silver Drop, Great Time to Buy!

Silver just took a huge drop, this is a great time to get in if you have not already.  Silver touched fifty dollars an ounce this spring and now has dropped down to thirty dollars today from around forty last week.  This is significantly lower than its high this year and many multitudes lower than its inflation adjusted high of 1980.  Many people may think that this is a bad signal for the metals market but, they are completely wrong.  The silver market naturally has huge swings because it is such a small market.  Pullbacks, even large ones, are a healthy sign for a bull market.   It is when bull markets turn into a parabolic increase that they reach bubble levels.  We are still a long ways away from silver or gold being a bubble.

Remember that silver is not just a precious metal, it is an industrial metal as well.  Even if the economy comes back strong, silver should do well in a boom just like oil or copper.  It is the greatest conductor of heat and electricity that occurs naturally in the universe.  This means we use it for everything, especially in the modern electronic age. There are literally hundreds of uses that you can find here.

We are in a totally unprecedented time in history when all the countries in the world have fiat currency.  Every single fiat currency in history has collapsed.  This has happened hundreds of times throughout the world as we look through time.  Hell, hyperinflation occurs in South America every decade or so! Even if you don’t buy everything I have been selling you about silver, you should at least protect yourself and buy a smaller amount of it just in case.  If you think that massive inflation or hyperinflation is a low probability scenario you should still have some capital invested into precious metals because it is such a high impact scenario.  Personally, I am confident this is a high probability, high impact scenario.  Consequently, I’m making a large portion of my portfolio out of silver.  Also, invest in physical metals to start out, don’t have all your gold and silver in paper stocks or shares.

Here is a movie on silver and gold investing by Michael Maloney.

 

Here is an article with more technical analysis.

 

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