PROFIT AND PROTECTION
The economy gives every impression that it’s going into a recession. That’s in spite of massive government spending. Only more of the same money and credit expansion can keep a downturn at bay, but that is highly inflationary. Confidence in the dollar has for the first time slipped a bit. That’s powered up gold and drawn attention to silver’s low price. Nobody seems to be too worried about financial affairs, but there are legitimate reasons to have concerns about the future.
Cultural issues don’t necessarily contribute to precious metals prices, but they are symptoms of decline that indirectly affect monetary policies and government spending. The U.S. gives trillions to solve social problems that usually grow worse. Free money often does more harm than good. Costly cures for left wing issues and the resulting government deficits provide a good argument for owning tangible assets. If the dollar sinks and the world economy contracts, as appears possible, investors will clamor for gold and silver. Precious metals prices appear to be discounting this possibility now.
Asian investors in the hundreds of millions are buying silver and gold. As gold gets more expensive, and silver moves up, it gives every indication that we’ve seen the bottom. Silver has a lot of ground to make up and if the bottom is in, we go up. We think you can make a lot of money with silver, but more importantly, is the protection it provides you against inflation, depression and the dangers of social disorder and financial anarchy.
