Silver and Gold won't back off
For the longest time, we've seen the manipulation on Silver and Gold by the Banks, Cartels, and governments. In the old days, there was an economic pattern. The cycle ran the 7 year run, give or take. Stocks go one way, bonds and fixed investments go another way, cash/silver/gold go another. The pattern worked and was predictable. As the economy changed, we knew where to move our money.
Then, the 2008 crash came and the USA government wouldn't thought they knew better than the normal economic evolution. They thought they could force the economy to stay a certain course. They started their quantitative easing, printing money, deflating, etc. Now, they are totally confused. The stock market is "ARTIFICIALLY" High. (Should be closer to the 12000-14000 range for the DOW. The S&P500, along with gold should be in the 1500-1600 range. Silver should be around 35-40. But it's too late for that. What has to happen now, is for a major reset. Even though the banks and the heavy players are trying to keep the dollar and the markets strong; which means keeping gold and silver down; it's simply not working. As seen lately, they can keep it slow, but gold and silver are moving and they will continue to. Are we in a Bull Market for the precious metals yet? I can't say yes on that yet. But I do feel confident that we have definitely seen the bottom for the metals.
And, people are really starting to wake up to the PAPER metals markets. The people are realizing that the paper market is not really a safe investment. It use to be that the paper owners knew that they could exchange their paper for the physical "IF" they wanted to. But because of their greed, they didn't want to. They simply wanted to buy and sell quickly to make a quick profit. Unfortunately, they've started to realize that the price of something can only go up, if others want to buy it. And the desire for the paper is starting to go down. Add to that, the weakening of the dollar and the volatility of the stock market, and people are wanting the physical instead of paper. Unfortunately, there's a 200:1+ ratio of paper to the "REAL STUFF". This is causing issues, because those buying the paper are realizing if they want to trade it for physical, they may not be allowed to. They'll be told that they have to wait 6-8 months. OR, they can sell and take DOLLARS. Neither is sounding so good.
Add to this, the many banks and countries wanting to go to a complete CASHLESS SOCIETY, and you start seeing a problem. Quickly, for those who don't know much about a cashless society, let me briefly explain it. The governments and banks, will tell you it needed to reduce crime, drugs, under the table illegal money transaction, tax evasion, etc. You might think this sounds legitimate. The government would be able to monitor all transactions, and no one would be able to HIDE their money; like the drug dealers or the person selling used property, yard sale, etc. And many people will say: "Well, I use my debit card and credit card 90% of the time anyway.... what's the big deal?" Here's the big deal. If there is NO CASH, then that means your ENTIRE WEALTH, is in a bank of some sort. If you don't like that bank, the best you can do, is TRANSFER your wealth/credit to another bank or institution. Sound like no problem. Right? Well, have you read anything recently about europe and other banks having NEGATIVE INTEREST RATES??? Supposedly, that's suppose to only be for the big corporations and banks who store money with each other. Basically, charging these big accounts, who only leave their money in the accounts for short periods of time, a FEE (Negative Interest Rate). It's rationalized by saying there's a lot of money being stored in these banks, and because it's for a short period of time, the banks can't use the money to give loans and they can't make money off of it. Sounds good at first. But, imagine a totally cashless society. The government, big banks, federal reserve, etc. decide that the economy isn't moving quite as fast as they'd like. That too many people are SAVING their "Money" and not spending enough. (That was a BIG COMPLAINT this past holiday season. Consumers weren't spending. Well, if we go completely cashless, the government, banks, etc. are able to force a NEGATIVE INTEREST RATE on us. Well, if I'm going to be charged to keep my wealth in the bank, you'd be more likely to spend it. Better than losing it. The more they want you to spend, the greater the negative interest rate they can set.
Bottom line, our money, wealth, and spending is being manipulated more and more everyday. Fortunately, most humans are rebellious in nature. If they go cashless, there will still be some sort of underground economy. Drugs will still be bought and sold. Illegal actions will still happen. As well as legitimate under the table actions such as selling used items, yard sales, doing odd jobs, etc. There will be around the cashless society. So while an inconvenience, and more infringement on our freedoms, I'm sure there will be a way around most of this.
But take this, along with the volatility of the stock market, no trust in the dollar or bonds, no interest or incentive to save, and you find that silver and gold is a very smart place to store some of your wealth. If you bought silver today, it only has to go to $30 an ounce to DOUBLE. TOO EASY!!! Gold, only has to get to around $2400. I am not a fortune teller, but I believe the NORMAL price, not too long from now, will be silver around $40-$50 and Gold around $2000. I see a separation between the physical and the paper silver/gold. I see the industrial use of silver expanding; especially with more medical and energy requirements. I see silver leading gold. With inflation and supply/demand being lopsided, I see Silver nearing $100 an ounce and Gold around $3,000. These are not going to be 3 month surges and then a big drop. These are going to be normal evolving plateaus that the metals will reach. It will PRESERVE your wealth. Even in a cashless society.
Do not get into silver and gold IRA's. No ETF's, mining stock, or any other stock. Depending on how much money you have, I suggest having a certain amount in the metals. And right now, would be the perfect time. I see the bottom either there now, or really close. I've suggested for the average person, to assist during inflation or to supplement their income in retirement, that they have about 500 ounces of silver; and if you're wanting gold too, about 3-5 ounces of that too. But a lot depends on how much money you have. If you have a healthy size 401k/IRA, and you're wondering what to do with the market going down, maybe you suspend putting money in there for a while until you see a bottom, and you invest your monthly in physical silver and gold. You don't get your 401k/IRA tax break, but you're diversifying. You can start up your 401k/IRA contributions again later. Mind you, I DO NOT RECOMMEND TAKING ANY MONEY OUT or TRANSFERRING from your 401K/IRA. Not even into silver or gold. This is something you have to look at.
Many of my readers don't really have a large 401k/IRA with hundreds of thousands of dollars in it. For those folks, stick with the plan. Build up your silver and gold as we discussed many times and you'll be able to protect some of your wealth, supplement your income during inflation, supplement your retirement when the time comes, pay off debt early, and buy items at a discount. Keep to the plan. For those with a larger portfolio or financially in a better position; I'm simply saying that you might consider making PHYSICAL silver and gold a percentage of your portfolio. How much??? Hard to say. That's your comfort level. 10-15% of your portfolio would be a good start.
REMEMBER: You're NOT BUYING SILVER AND GOLD. You're simply EXCHANGING MONEY. You're taking some of your money that's in DOLLARS, and you're EXCHANGING it for Silver/Gold. Just like when you go on vacation to Europe and you EXCHANGE Dollars for Euros. You didn't SPEND IT.... You simply EXCHANGED IT. And as long as you're not trying to speculate and turn over the silver/gold immediately trying to make an "Investment Profit", you'll never lose you're wealth/money.
CYA: SE:
Then, the 2008 crash came and the USA government wouldn't thought they knew better than the normal economic evolution. They thought they could force the economy to stay a certain course. They started their quantitative easing, printing money, deflating, etc. Now, they are totally confused. The stock market is "ARTIFICIALLY" High. (Should be closer to the 12000-14000 range for the DOW. The S&P500, along with gold should be in the 1500-1600 range. Silver should be around 35-40. But it's too late for that. What has to happen now, is for a major reset. Even though the banks and the heavy players are trying to keep the dollar and the markets strong; which means keeping gold and silver down; it's simply not working. As seen lately, they can keep it slow, but gold and silver are moving and they will continue to. Are we in a Bull Market for the precious metals yet? I can't say yes on that yet. But I do feel confident that we have definitely seen the bottom for the metals.
And, people are really starting to wake up to the PAPER metals markets. The people are realizing that the paper market is not really a safe investment. It use to be that the paper owners knew that they could exchange their paper for the physical "IF" they wanted to. But because of their greed, they didn't want to. They simply wanted to buy and sell quickly to make a quick profit. Unfortunately, they've started to realize that the price of something can only go up, if others want to buy it. And the desire for the paper is starting to go down. Add to that, the weakening of the dollar and the volatility of the stock market, and people are wanting the physical instead of paper. Unfortunately, there's a 200:1+ ratio of paper to the "REAL STUFF". This is causing issues, because those buying the paper are realizing if they want to trade it for physical, they may not be allowed to. They'll be told that they have to wait 6-8 months. OR, they can sell and take DOLLARS. Neither is sounding so good.
Add to this, the many banks and countries wanting to go to a complete CASHLESS SOCIETY, and you start seeing a problem. Quickly, for those who don't know much about a cashless society, let me briefly explain it. The governments and banks, will tell you it needed to reduce crime, drugs, under the table illegal money transaction, tax evasion, etc. You might think this sounds legitimate. The government would be able to monitor all transactions, and no one would be able to HIDE their money; like the drug dealers or the person selling used property, yard sale, etc. And many people will say: "Well, I use my debit card and credit card 90% of the time anyway.... what's the big deal?" Here's the big deal. If there is NO CASH, then that means your ENTIRE WEALTH, is in a bank of some sort. If you don't like that bank, the best you can do, is TRANSFER your wealth/credit to another bank or institution. Sound like no problem. Right? Well, have you read anything recently about europe and other banks having NEGATIVE INTEREST RATES??? Supposedly, that's suppose to only be for the big corporations and banks who store money with each other. Basically, charging these big accounts, who only leave their money in the accounts for short periods of time, a FEE (Negative Interest Rate). It's rationalized by saying there's a lot of money being stored in these banks, and because it's for a short period of time, the banks can't use the money to give loans and they can't make money off of it. Sounds good at first. But, imagine a totally cashless society. The government, big banks, federal reserve, etc. decide that the economy isn't moving quite as fast as they'd like. That too many people are SAVING their "Money" and not spending enough. (That was a BIG COMPLAINT this past holiday season. Consumers weren't spending. Well, if we go completely cashless, the government, banks, etc. are able to force a NEGATIVE INTEREST RATE on us. Well, if I'm going to be charged to keep my wealth in the bank, you'd be more likely to spend it. Better than losing it. The more they want you to spend, the greater the negative interest rate they can set.
Bottom line, our money, wealth, and spending is being manipulated more and more everyday. Fortunately, most humans are rebellious in nature. If they go cashless, there will still be some sort of underground economy. Drugs will still be bought and sold. Illegal actions will still happen. As well as legitimate under the table actions such as selling used items, yard sales, doing odd jobs, etc. There will be around the cashless society. So while an inconvenience, and more infringement on our freedoms, I'm sure there will be a way around most of this.
But take this, along with the volatility of the stock market, no trust in the dollar or bonds, no interest or incentive to save, and you find that silver and gold is a very smart place to store some of your wealth. If you bought silver today, it only has to go to $30 an ounce to DOUBLE. TOO EASY!!! Gold, only has to get to around $2400. I am not a fortune teller, but I believe the NORMAL price, not too long from now, will be silver around $40-$50 and Gold around $2000. I see a separation between the physical and the paper silver/gold. I see the industrial use of silver expanding; especially with more medical and energy requirements. I see silver leading gold. With inflation and supply/demand being lopsided, I see Silver nearing $100 an ounce and Gold around $3,000. These are not going to be 3 month surges and then a big drop. These are going to be normal evolving plateaus that the metals will reach. It will PRESERVE your wealth. Even in a cashless society.
Do not get into silver and gold IRA's. No ETF's, mining stock, or any other stock. Depending on how much money you have, I suggest having a certain amount in the metals. And right now, would be the perfect time. I see the bottom either there now, or really close. I've suggested for the average person, to assist during inflation or to supplement their income in retirement, that they have about 500 ounces of silver; and if you're wanting gold too, about 3-5 ounces of that too. But a lot depends on how much money you have. If you have a healthy size 401k/IRA, and you're wondering what to do with the market going down, maybe you suspend putting money in there for a while until you see a bottom, and you invest your monthly in physical silver and gold. You don't get your 401k/IRA tax break, but you're diversifying. You can start up your 401k/IRA contributions again later. Mind you, I DO NOT RECOMMEND TAKING ANY MONEY OUT or TRANSFERRING from your 401K/IRA. Not even into silver or gold. This is something you have to look at.
Many of my readers don't really have a large 401k/IRA with hundreds of thousands of dollars in it. For those folks, stick with the plan. Build up your silver and gold as we discussed many times and you'll be able to protect some of your wealth, supplement your income during inflation, supplement your retirement when the time comes, pay off debt early, and buy items at a discount. Keep to the plan. For those with a larger portfolio or financially in a better position; I'm simply saying that you might consider making PHYSICAL silver and gold a percentage of your portfolio. How much??? Hard to say. That's your comfort level. 10-15% of your portfolio would be a good start.
REMEMBER: You're NOT BUYING SILVER AND GOLD. You're simply EXCHANGING MONEY. You're taking some of your money that's in DOLLARS, and you're EXCHANGING it for Silver/Gold. Just like when you go on vacation to Europe and you EXCHANGE Dollars for Euros. You didn't SPEND IT.... You simply EXCHANGED IT. And as long as you're not trying to speculate and turn over the silver/gold immediately trying to make an "Investment Profit", you'll never lose you're wealth/money.
CYA: SE:
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