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Sanity With Silver...
By Nick Hodge | Friday, November 22nd, 2013

If you haven't bought silver yet... you should start.

I've already started buying mine, with most of my holdings bought when silver was around $24.

At today's prices, I'm buying more.

There's also a way for you to get leveraged exposure to silver without risking excess capital. Here's what I mean...

Take the Money and Run... to Silver

In early 2008, the financial markets were in free-fall.

Silver's peak that year was right around $21.00 per ounce.

Today, you can buy silver for cheaper than you could then.

For me, that's convincing enough.

The only thing you can buy today for the same price as 2007 are houses and silver. Those are both true stores of value.

Stocks are a third higher (33%!) than they were in 2008, having gone from DOW 14,000 to DOW 7,000 (in 2009) to DOW 16,000 at the present time.

(If they're not already, Steve Miller tunes should be swirling around your head.)

Sanity With Silver

Here's a chart of the Dow Jones Industrial Average and the S&P 500 since they bottomed in early 2009.

Forget for a moment if this can last (it can't), and think for a moment about if it's deserved.

Now a few questions for you...

Is the economy 120% to 140% better than it was in 2008?

Are you spending 120% to 140% more at your local retailers?

Have your wages increased 120% to 140% in the past few years?

Those gains you've enjoyed in your IRA or 401(k) since 2009... are they real? Or do you just "own" them on a screen?

Could they be wiped out like this in the next, oh say, 17 months, like those at the Federal Reserve would like you to forget?

Is the unemployment rate better now than when the Dow hit 14,000 the first time, in 2007?

(Hint: It's more than 50% worse, from 4.7% unemployment then to over 7% now.)

Is median family income higher or lower than it was then?

(Hint: It's lower.)

As you're turning these questions over in your mind, ask yourself just one more: Should the stock market really be 120% to 140% higher than it was in 2009... or are stocks simply being inflated by unprecedented monetary actions for which we don't know what the ultimate outcome will be?

Are You Getting It?

These stock market gains are fake. A mirage. An illusion. A house of cards. An apparition.

It's a Ponzi scheme. It's a paper game.

Only the first ones out can profit. And the first ones out are never people like us.

Hard assets are our insurance against that.

I like silver particularly because it's affordable to most people. I've bought a lot of silver in the $24-$26 range. And I haven't lost a wink of sleep as it skid 25% to $19.00.

Because I KNOW silver is a store of wealth.

And I know it's worth more than the $25 I paid for it.

But when a stock I own slips even 10% to 15%, I worry. I get antsy. Because I truly don't know what it's worth.

Will it slip another 15%? Will it go to zero?

Silver doesn't go to zero.

We here at The Outsider Club think the white metal has a lot of upward room from here. And we've even found a way to make double the silver returns that are on the horizon...

Call it like you see it!

cheers

W. C. Guy

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West Coast Guy
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Golden Minerals Company
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