Only Precious Metals?

April 24, 2012

Whenever someone finds out I own a few ounces of gold and silver, they always make a statement like, “Oh, you think we’ll go back to the gold standard or using silver coins as money?”

This question is flawed on a few different levels, because they assume my thinking is that I’m a precious metals only guy. Nothing could be farther from the truth. Investing for the common person has many avenues, and the myth we’ve all bought into is, DIVERSIFY! Over the last twenty years if we had some money in real estate, precious metals, stock market, savings account, or any other form of investment we would’ve made some money, lost some money, but probably slightly made some money, or at least so we think. The lie is that we only experience 1% inflation per year. So, if we can find a saving’s account that yields 2% we’re now “making money.” Well, if the best answer your adviser can give you is “diversify” you should be smart enough to understand he isn’t good at his job and has no clue what is going to happen and your guess is as good as his. There is always a BEST, then there is everything else. There is no good investment, it’s either great, or, it’s not as good as great and you are losing “money” or the term I prefer wealth that you could be gaining. Let me simply state this, “if everyone is thinking the same thing, no one is really thinking.”

Precious metals, stock markets, and land all move in cycles. They hit equilibrium for only a short span of time, because they are consistently being overvalued and undervalued. As this article is being written in April of 2012 the stock market and land are still slightly overvalued, while metals find themselves extremely undervalued. If you study technical research you’ll learn about the different way stocks move. Right now the stock market and housing market are in what is called, “the dead cat bounce.” If you are unfamiliar with this term it basically acts like a ball. It drops, hits a bottom,  but it bounces back up, some erroneously call this equilibrium, however, this is just a bounce, it will then fall and bounce again, and again, and again. These bounces take several weeks to play out which is why they are often unidentified by us, the common investor. As these markets will soon be undervalued, the precious metals will rise to being overvalued, and that is the selling point, where we will want to now turn our investments to stock and houses. There is no “always, best” investments move in cycles.

So, for right now, I have sold everything and put all my wealth into metals, because now is a good buying time across the board. In future articles I will discuss why this week in particular was such a good week. But for now I will just say with silver being $30 and some change – buy, buy, buy!

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One Response to “Only Precious Metals?”

  1. Multiplicityinc Says:

    I will look forward to reading more of your posts in the future. We should all seek to be full-time learners!


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