Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

This is Where Smart, Rich Investors Will Buy Silver

Commodities / Gold and Silver 2010 Feb 11, 2010 - 02:50 PM GMT

By: DailyWealth


Best Financial Markets Analysis ArticleIt was smartest thing on silver I've heard in a long time…

Not surprisingly, Chris Weber said it.

For those of you unfamiliar with Chris Weber, he's as close to an investment oracle as you'll ever find. For 39 years, since age 16, Chris has made his living as an investor. To live this sort of life, you have to be a contrarian… you have to be willing to think and do unpopular things. Chris did just that when he told readers of his Global Opportunities Report:
If the Chinese economy falters, then it is very possible that commodities will fall as well, since China has been a huge market for them.

I think gold will do better than silver under this scenario, because gold is viewed as a monetary commodity by all the major players, whereas silver is viewed as an industrial metal as well as a monetary one. In a contracting economy, silver may fall. That doesn't mean I'm going to rush to sell my silver, it means that I am prepared to see silver fall.
This sort of thing drives people who hold gold and silver nuts. There's a reason gold has been used as money for thousands of years. It's easy to get attached to. And many gold and silver owners are very emotionally attached to their gold and silver holdings… much more so than, say, someone who owns 100 shares of Microsoft. Telling them gold or silver could decline in price is like saying their children are ugly.

Chris, like me, believes the price of silver is going to be higher years from now. Governments are in a long-term trend of debasing their currencies, which will send the price of "real assets" like silver much higher. But despite Chris' bullishness, he doesn't stick his head in the sand and ignore things that might differ from his thesis.

After all, even the strongest bull markets can trend sideways, or lower, for many months… even years. And a weakening of the global economy could hurt silver because it's heavily used in industry.

For a picture of how "hurt" silver could get in a correction – and where I expect will be a spectacular buy point – take a look at this three-year chart of silver:

Note that if you take out the crazy price action produced by the late 2008 credit crisis, you'll see that buyers tend to support silver when it trades for $11 to $12 per ounce. Silver bounced down to this area in August 2008, April 2009, and July 2009. Each time, silver stopped falling.

I believe this is the price where smart, rich investors step in to buy millions of dollars worth of silver for their "crisis portfolios." I know several extremely wealthy investors who have this area pegged as a place to buy lots of silver. They see it as the bargain price.

They know a global debasement of currencies will eventually push gold and silver higher… which will overwhelm any short-term considerations. And $12 silver is a cheap way to hedge the rest of your portfolio against currency crisis.

I'm sure Chris' comments generated some negative feedback from hard-core gold and silver fans. I'm sure this essay will generate some, too. But as investors, we always have to consider the potential risks to our holdings, rather than blindly focusing on the potential rewards. You have to be prepared to see your silver holdings decline in value.

And while I'm bullish on silver, I agree with Chris. If the magical economic recovery the U.S. and Chinese governments have engineered doesn't pan out, it could temporarily depress the price of silver…. Even down to $11 an ounce. And as you can see, this would present a terrific buying opportunity for silver bullion and silver stocks.

Good investing,


P.S. Last week, my colleague and resource expert Matt Badiali showed you how to get paid by a "gold bank." The same idea works just as well for silver. If you're looking for a conservative "sleep at night" way to hedge your portfolio with a unique gold and silver investment, click here.

P.P.S. Chris Weber is, by far, one of the best investors we know. And his Global Opportunities Report is considered a must-read in the DailyWealth office. If you're interested in finding out about Chris' personal favorite recommendations for both cash and gold, click here to learn more.

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2010 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules