Posted by: ProspectingJournal on Oct 03, 2011
COMMENTARY – ProspectingJournal.com – It’s unclear as to what gold and silver bugs have to complain about recently. The market has given them two, count’em, TWO big discounts with which to start buying in with both hands this year, and yet the recent kaboom in silver prices from a couple weeks ago has many heading for the hills and sinking their chances with the bonds and dollars. Sure, the headlines haven’t been friendly to gold and silver lately, especially when all one sees is one of the biggest drops in ten years. But, what these headlines should be reading is “SILVER AND GOLD, NOW ON SALE (for a limited time only)!” What’s to complain about?
It’s becoming more acceptable these days for financial advisors to suggest bulking up your portfolio to contain at least 5%-10% in silver. If you’re not at that percentage, now wouldn’t be a bad time to reconsider and inflate your position. In times of turmoil, it’s a nice hedge. In the unlikely event that the economy turns itself around and faith returns to the markets, then the remaining 90% of your portfolio will be your top performer… so win-win. As Dr. David Eifrig of DailyWealth states, “Just like I wear my seat belt while driving, I own silver and gold – just in case.”
But, if you’re a believer in precious metals already, then this advice isn’t new to you. What may be worth noting is how much trouble you might be having convincing those that you care about to take such precautionary measures. It can be difficult to prove your stance on gold and silver when the short-term snapshot looks so unappealing. Perhaps you’re being ignored for your contrarian streak, or because the world hasn’t fallen into total chaos as you’ve warned. Alas, we cannot forget the rise from the drubbing silver took in April to its $42 high in August. Like when Rocky wouldn’t listen to his trainer Mickey Goldmill, silver just won’t stay down!
Disclaimer: The author of this article does not hold shares of any of the ETFs mentioned in this article.
written by shgrunewald, October 06, 2011