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Silver is still cheap

by Silver Coin Guy on August 21, 2011

Despite all the uncertainty and turbulence (volatility!) in the financial markets these past couple weeks one investment class has been on a tear… precious metals.  Precious metals are considered a “safe” asset, as opposed to stocks, bonds and other more conventional investments. (By conventional I mean those investments that are officially sanctioned and promoted by the financial powers that be.) and naturally these tend to perform  better in uncertain times than they do when things are more settled.

So the question we need to ask ourselves is, “Has silver and gold become too expensive?”

Honest Ed FSOD
Creative Commons License photo credit: PinkMoose

After all, we don’t want to invest a significant sum into silver and gold assets only to have the price drop right after we’ve invested.  That would be like buying a house in 2006 at the top of the market only to find yourself chained to an investment worth far less than you paid for it.

I remember a year or two ago when I was stressing about paying $18/Ounce for silver.  I thought it was expensive at the time but in retrospect it was amazingly cheap.

Ten years ago I fretted over spending $250/Ounce for gold which again, in retrospect, was very, very inexpensive.

I wish I had bought more.

Now, with gold and silver prices at new highs I have to ask myself, “Should I continue to invest in Gold and Silver coins or wait for a price correction?”  This is a question we all ask ourselves when it comes to making financial decisions.  To properly answer it we need to look at some fundamentals.

What does the future of the US Dollar look like…good, bad, terrible?

What about the Euro and the whole European debt thing.  Good for the stock market, business and wealth in general?  The answer is no, at least in my opinion.  The math is against it.  Our politicians have promised too much for too long to too many and now it’s time to pay up.  Well, the money simply isn’t there, no matter how much they raise taxes.  The system is unsustainable.

It is my firm belief, and this is just my opinion, that even at today’s prices silver and gold are bargains.  If you’ve been telling yourself that you should invest in precious metals now is the time to actually do it.  If you’ve already invested in precious metals this is no time to stop…take advantage of the opportunity to pick up more now.

Silver is going to go higher in price.  Gold is going to go higher as well because the economic fundamentals all point in that direction.  You can choose to trust the Government, as most people have, and their continued lies and false promises.  Or you can choose to trust in a form of wealth that has served as a way to preserve value for thousands of years…gold and silver.

Protect yourself. Choose to own silver coins and gold coins.

 

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