Historical Valuations and What It Means Now....
Well if you follow my thoughts at all you know that I look for value. There is an element of central bank interference at the moment and this plays a role in certain markets valuations. You know how I follow these trends. I don't look at where the market should be but rather I look at it and how it fits into the central bank's ideology. For example, it is the single reason why you will never again see a commodity like Oil at one hundred dollars a barrel ever again. Simply put the economy could not handle it and it would push indebted people over the edge of the financial cliff. As a result of this knowledge, the central banks won't allow this to happen.
However what about other markets. Like, say gold and silver. Silver certainly has a lot more uses than gold so it may be stifled from its ascent. It has always been a very strongly manipulated markets and so anything is possible.
If you look at historical valuations of Silver it should be around 26.00 an ounce right now in relation to the price of gold. That is quite a ways off from where it is now and it has some catching up to do.
I have attached a chart to show you the history of my own involvement with Silver so that you can see how I played it. I first bought it at a low of nearly 4 Dollar back when the gold bull was just beginning in 2001 when I knew the Dollar would fall. This was an easy one to buy because it couldn't really go any lower so my own risk was almost nothing.
My parents (may their souls rest in peace) bought Silver at the high back in 1976 and listened to the hype that it was going up forever. They watched as it fell and fell and fell for decades after that.
In 2007-8 I started telling everyone where I worked at the time which was in social services to follow my lead. Buy Silver I said after the big correction of 2008. I pleaded with these poor hard-working souls to trust me. To simply follow my lead because the risk was almost nonexistent while the upside was huge. This was before central bank interference so the potential was truly large.
No one listened to me and hence they lost out. The market slowly made a huge run-up and they watched while the price kept rising day after day. Some even yelled at me for not forcing them to buy (as if I could make them do it or something). It was truly a sad time to go to work. It was painful for me to see them and look them in the eye. All they talked about was where the price was. When it was over I told them that they could likely have retired had they rode the full move out. That they would have made 6 or 7 times their money or more if they kept buying.
You can see the chart below. It doesn't mean that Silver will return to its former highs any time soon but if gold heads up to higher levels so that debt can be inflated away I would think that Silver and some other commodities will follow. Positioning yourself in Silver is much easier than gold for most. You only have to spend 17 dollars an ounce at the moment where gold will cost you 1500 an ounce. It is the poor mans ticket to some riches if price follows gold. I am telling you to buy with a stop below 11. Plain and simple. Enjoy!
However what about other markets. Like, say gold and silver. Silver certainly has a lot more uses than gold so it may be stifled from its ascent. It has always been a very strongly manipulated markets and so anything is possible.
If you look at historical valuations of Silver it should be around 26.00 an ounce right now in relation to the price of gold. That is quite a ways off from where it is now and it has some catching up to do.
I have attached a chart to show you the history of my own involvement with Silver so that you can see how I played it. I first bought it at a low of nearly 4 Dollar back when the gold bull was just beginning in 2001 when I knew the Dollar would fall. This was an easy one to buy because it couldn't really go any lower so my own risk was almost nothing.
My parents (may their souls rest in peace) bought Silver at the high back in 1976 and listened to the hype that it was going up forever. They watched as it fell and fell and fell for decades after that.
In 2007-8 I started telling everyone where I worked at the time which was in social services to follow my lead. Buy Silver I said after the big correction of 2008. I pleaded with these poor hard-working souls to trust me. To simply follow my lead because the risk was almost nonexistent while the upside was huge. This was before central bank interference so the potential was truly large.
No one listened to me and hence they lost out. The market slowly made a huge run-up and they watched while the price kept rising day after day. Some even yelled at me for not forcing them to buy (as if I could make them do it or something). It was truly a sad time to go to work. It was painful for me to see them and look them in the eye. All they talked about was where the price was. When it was over I told them that they could likely have retired had they rode the full move out. That they would have made 6 or 7 times their money or more if they kept buying.
You can see the chart below. It doesn't mean that Silver will return to its former highs any time soon but if gold heads up to higher levels so that debt can be inflated away I would think that Silver and some other commodities will follow. Positioning yourself in Silver is much easier than gold for most. You only have to spend 17 dollars an ounce at the moment where gold will cost you 1500 an ounce. It is the poor mans ticket to some riches if price follows gold. I am telling you to buy with a stop below 11. Plain and simple. Enjoy!
No comments:
Post a Comment