Did you "Catch the Wave"? It's not too late

 Hello friends. I wanted to wait before posting again to see if the "Wave" in silver and gold was just a daily catchup or if I believe it's actually on the move. This is mainly for those who have been wanting to have some silver or gold in their portfolio but hasn't done so yet. Also, for those who are building and stacking and wonder if they should get more. 

Remember; my opinions are just that. Opinions; based on many years of experience. Mine and the world's. I highly recommend that you research my or anyone else's opinions. We aren't your paid "Financial Advisors", but we do want to help.

Anyway, as you have seen over the past few weeks, the value of Silver and Gold has been quite impressive. Before you trade currencies (meaning silver/gold for dollars, euro, yen, etc... you have to determine WHY is the value of Silver/Gold on the rise. 

I/We would love it if it were because Gold and Silver (Especially Silver) have been undervalued for so long and they were coming back in line to what their true value is. That would be nice, but unfortunately that isn't really the reason for the rise. There's too much MANIPULATION going on in the trading world to allow Silver and Gold to be at their true value. Based on historical value, even in just the 20th century, minus major events like WWII, the average silver to gold ration was around 40 to 60 : 1. Meaning, 1 ounce of gold was equal to approximately 40-60 ounces of silver. That means at today's prices alone, silver should be between $35-$50 an ounce with gold at $2000 an ounce. But if you look at the last 20 years with the MAJOR MANIPULATION of JP Morgan, COMEX, and other influencers, the average ration has been 60-90 :1 . Meaning 1 ounce of gold would be equal to 60-90 ounces of silver. At today's prices, gold = $2047 and silver = $26, that's a 78:1 ratio. So no...... the prices aren't increasing because silver and gold are getting back to the values they SHOULD BE AT. In my opinion, if the prices were where they should be; based on historical value, inflation, and the value of the dollar;  then silver would be at $40-$50 per ounce and Gold would be around $3,000 an ounce. And even more accurately, with gold at $3,000 silver SHOULD be around $60 with a 50:1 ratio.

OK, so if things aren't where they are SUPPOSED to be, then why the climb in silver and gold value. Quite simple. The dollar is getting weaker. Ever since President Nixon took the United States off of the Gold Standard, the dollar became quite the world's reserve currency. Meaning, any international trading of common goods, such as oil, diamonds, and many other products were sold using the US Dollar. Also, the dollar is what is used as the debt currency. If we had debt with a country, we would use the dollar. As would many other countries dealing in debt. The problem is, when the value of the dollar goes down, those holding dollars as debt in other countries, trade the dollars back for other currencies like euros, yen, etc... And many people, if they see the dollar as not strong, will not invest in the dollars. They won't buy the government's debt or trade in dollars. This is when people put money in solid investments like Silver and Gold. 

You've heard me many times say that silver and gold are a PRESERVATION OF WEALTH. That when there is inflation, that the value of silver and gold will follow the value of the dollar. That's what's happening. But don't get confused with the VALUE of the DOLLAR, and the PRICE of goods. When there is INFLATION and the price of goods go way up, that's partially because the VALUE of the dollar is going down. Holders of dollars in debt, trade, etc. are turning the dollars back in. Basically, they are flooding the market with dollars they don't want. Thus, the VALUE of the dollar goes down and therefor prices for goods and services go up. Of course, they NEVER get our paychecks caught up as quickly as they do the price of food, rent, gas, etc. 

So, this scenario is the very reason I've been promoting for YEARS the need for you to have some silver and gold in your portfolio. And REMEBER!!!! PHYSICAL SILVER AND GOLD are the ONLY things that matter. If you can't HOLD the Silver and Gold in your hand, it DOES NOT EXIST. Do not buy ETF's, Silver/Gold Stocks, or any other type of PAPER. That is a ponzi scheme. There isn't enough gold and silver in the WORLD to cover the amount of PAPER Silver and Gold traded each day. By like 100X.  Anyway, even at today's trade value of around $26 an ounce for silver and $2047 you should still try and go out and get yourself about 100 ounces of silver and an ounce or two of gold. I know, $5000 is a lot of money to come up with for most people. Of course, I've always suggested over the years to do dollar cost averaging and buy a few ounces per month. But again, this is for those who don't have ANY silver or gold and think they MAY HAVE Missed the Boat. You haven't missed the boat, but the cruise is getting ready to set sail. And for what it's worth, I have physical gold on hand that I paid $37 an ounce for years ago. But then again.... I have some silver I paid $10 an ounce for years ago. So if I was to average it all out, my break even point is in the $20-$21 an ounce area. So getting some today at $31-$32 an ounce ($26 + $5-$6 Premium that dealers charge) still isn't that bad. Assuming of course you can even find any at a dealer. Most are totally sold out. Although there are still quite a few online dealers you can get some from.  SD Bullion and APMEX are two reputable places to get physical silver/gold and they have it in stock. It will be more than a local coin shop, but it is reputable and available. Local today would be about $29 for a 1 ounce silver round. SD Bullion and APMEX would be $31-$32 for the same 1 ounce. And don't even think about US Silver eagles. With the premiums on them, the going price is around $45-$47 per 1 ounce silver eagle.

But remember.... this IS NOT AN INVESTMENT. This is a PRESERVATION OF WEALTH. If the proverbial  "$H*T Hits the fan". then the value of silver is going to be $50-$100 an ounce, because milk is going to be $6 a gallon; bread will be $4 a loaf, gasoline will be $7 a gallon, etc... And that's why if you can get about 100 ounces of silver, and maybe an ounce or two of gold, that is about a month or two of expenditures. $5,000 and when prices go through the roof because of the crashing dollar and hyperinflation, the silver and gold can be traded back directly for dollars or used as direct currency and offset your normal income "IF NEEDED". If not needed, DO NOT THINK it's a great time to trade the silver and gold back for dollars because the value is $100 per ounce for silver. The value will reach $100 an ounce because what you can BUY TODAY in the store for $25 WILL COST $100 for the SAME AMOUNT of buying in the store.

Anyway; just like any other financial portfolio, it should be well diversified. Stocks, bonds, cash, real estate (YOUR HOME), silver/gold. But the GREATEST 2 ASSETS you can have in your portfolio in case there is a major catastrophe or economic break down, is: 1: DEBT FREE!!! Obviously, most people can't pay off their home if they are in their 30's, 40's or some in their 50's. But you can be debt free in all other areas. DO NOT CHARGE on your credit card unless you pay off the ENTIRE BILL EACH MONTH. Pay off car loans and other debt. 2: second greatest asset is YOUR SKILLS. Your knowledge, skills, capabilities, labor. The more you are capable of doing for yourself, means the more you can do for others IN TRADE for something you may need. THE BARTER SYSTEM!!! Your neighbor has a garden and does a great job at growing vegetables. But they can't do anything when it comes to doing electrical, plumbing, carpentry, fixing cars, electronics, etc... Most people throughout history have survived on the BARTER SYSTEM. But this only works if others have something to barter. So, build a portfolio that is diverse. 

Do I KNOW FOR A FACT where the value of silver and gold are going? Nope....But I do know that my silver and gold will NEVER LOSE ME MONEY/VALUE. It doesn't matter if the dollar value is $25 an ounce or $100 an ounce for silver. OR... if it DROPS to $10 an ounce. I won't lose money. When I need it to offset inflation, it will be there and my standard of living will not have to change at all. Remember, when you buy this minimum $5,000 worth of 100 ounces of silver and an ounce or so of gold, you aren't looking at having to use it all at once. You're looking, IF NEEDED, to use it to SUPPLEMENT you income to overcome inflation or unexpected personal catastrophe.

Keep the faith. I'll keep posting.

CYA
SE