Is HyperInflation a possibility? You bet it is...
NIA(National Inflation Administration)released a report that believes because this decade's Real Estate bubble was so large, Real Estate prices will likely overcorrect to the downside and the median U.S. home will be worth only 500 ounces of silver at some point this decade. Therefore, if you buy just $13,000 worth of physical silver today based on 26 dollar silver, NIA believes you will be able to pay cash (without any mortgage) for an average American home within the next 5 to 10 years." http://inflation.us/foodpriceprojections.pdf I do believe that we'll see inflation like this, but I think what we'll see first is corporations trying to keep a lid on prices and they'll do that by reducing the size of the item you buy. We're beginning to see this already, with cereal boxes shrinking as well as the amount of food being served in restaurants with each plate as commodity prices climb higher and higher. Gold & Silver were the star performers yesterday, with Gold trading past $1,400, and Silver trading past $27. This morning, there's more Gold & Silver buying, and now Silver is trading over $28! WOW! The thinking that the FOMC's $600 Billion QE isn't going to be enough, and the Eurozone periphery country problems is really pushing Gold & Silver higher, and higher.
People ask me all the time how to play the silver/gold market...so here you go...
I stick with the etf's for silver = SLV, a stock that has a great model geared toward no work all pay based on Silver is SLW....just reported great numbers. I own options on both and have for years.
Gold again etf GLD or if you want leverage with the gold miners which as you will learn leverage is a two sided sword, goes up and down with gold prices but more than the actual physical moves. With that being said GDX (major miners) and GDXJ(small miners) is the way to play it. The GDX miners are pulling it out of the ground all expenses paid for 450 an ounce....gold at 1400 no brainer. If you're interested in two actual stocks go with AEM and EGO....pulling it out of the ground for cheap and no future prices locked in.
If you're looking for gold, silver, palladium and platinum just read about a new ETF that looks very good called GLTR.
Again do your own homework....gold and silver while is needed in any and all portfolios....has skyrocketed lately so average in to any and all investments in this area and if you're familiar with options use deep in the money far out options instead to buy these.
If you do nothing else after reading this other than get interested....for goodness sake do something. It's your money and I promise you the price of silver and gold as I've stated for the past 10 years to anyone that would listen will be more expensive 2 years from now than it is now.
Do your own Diligence..
Happy Investing.
Marty Blackmon
We had a key reversal in everything today....Watch out for all stop losses on any stock you have. I was buying puts days ago on the S&P 500 and have sold all upside November calls against my silver and gold so I've protected all my gains so far on all silver and gold by giving up my possible upside and if we go down I make money...nice huh? While I believe in silver and gold long term you have to respect the price action today and pay attention.
ReplyDeleteWhat this does is give you the opportunity to jump in the miners gradually if they continue to sell off....which I hope they do. My favorites are again AEM and EGO.
Using BullionVault you can obtain physical gold and silver bars at current spot prices.
ReplyDeleteOpen your free account now and get 4 g's in free silver as a joining bonus.