By: John Fisher
- Silver turnover (amount physically changing hands) is extraordinary – on the order of 1.5 to 2.0 million ounces per day. Tight supplies will only increase, driving the price higher.
- JP Morgan and the other large holders of short positions on the COMEX are unwinding their positions – having to buy back at much higher prices than where they entered the market – extremely bullish. Despite JP Morgan exiting the silver market, eight other financial institutions are short almost 50% of the annual silver mine production – resulting in tremendous downward pressure on the silver price.
- Silver is appreciating much more rapidly than gold at this point – and may do so into the near future.
- As the Gold:Silver ratio has declined from 66 to 47, balance your purchases 50/50 between gold and silver. Look to swap more silver for gold near 42.
- There are too many prospects and clients attempting to enter the market, or buy more, as soon as the price dips. This is a huge mistake. I know of too many individuals who were going to do that back when prices were in the teens, and again in the 20’s and have now been left behind. When and if it does dip, people don’t know how far it will dip, so they still don’t buy. Then when it goes up again, now they won’t buy because it was cheaper just days ago. Here’s the deal – the only deal that works: Buy regardless of the price – absolutely don’t get cute or fancy. If the price goes down, buy some more. You and I do not know what the market is going to do – other than go higher over time. This is the ONLY strategy that is sure to work.
- 2011 – $40 silver easy, $1650 gold easy. Stay out of platinum and palladium – they have no monetary component.
- Individual investors in Europe in increasing numbers are experiencing difficulty in taking physical delivery of their metals in bank storage.
- 90% pre-65 silver coinage is absolutely the best buy in silver at present. If you don’t have any, get some. It is also the best form to have for emergency purposes.
- I intend to be much more bold next year in encouraging individuals to have some, even nominal, positions in physical metals. The dollar is tanking and will continue to tank, and China will increasingly dictate world economics and monetary policy, especially that of the United States.
- Finally – if you have been waiting, you are already kicking yourself about what could have been. DON’T WAIT ANY LONGER! Yes, you have missed the first part, but with all the knowledge and experience I have, the greatest move is yet to come.
All Things Considered – John’s Commentary
I will be direct and concise. I take NO pleasure in saying, “I told you so.” I truly wish many of my clients would stop proving me right. When I say, “Don’t try and time the market”, it is the absolute best counsel I can provide you.
I have multiple clients, that even over the last month have “been waiting for prices to go lower”. All the while, silver has now surpassed $30 and gold $1,400 as they sit and wait. It is an effort in futility.
If you have a day trader mentality, trying to pick up a buck or two on the silver price, you will likely pay in the long run. If you approach your metals investing with a sound and long-term mentality you will reap great reward.
The gold and silver prices will both decrease and increase over time. The great news is that the price trend will increase significantly over the next many years for both metals. Buy now and profit, wait and you risk lessening your profit and growth.
