The stock market has been on a meteoric rise over the last year or so, while precious metals have been on a downhill slope. This occurs because the market becomes comfortable, and quite frankly, greedy, as stocks continue to rise while interest rates remain at or near zero. Gold and silver stocks are mostly considered to be a long-term investment, and are relatively safe, but the allure of fast money compels investors to abandon the precious metals ship and climb aboard the risky, manipulated train of paper stocks.
It is a simple, inverse equation – stocks go up, metals go down. Stocks go down, metals go up. Do you believe that the current stock market gravy train will sustain itself? Or should we take steps to mitigate a massive market change and invest while metals are at their lowest levels in nearly half a decade?
The US economy is dead. The Fed has known this for a long time, but pumped it up to where it is now to draw in all the greater fools, the so-called big investors who have made money like honey from QE and ZIRP. […] The Fed will raise rates because that will make the biggest banks the most money. There’s nothing else that matters. The Fed can’t revive the US economy, that’s just a foolish notion. But it can suck a lot of wealth out of it. – Zero Hedge.com, The Fed Has a Big Surprise For You
We saw a massive spike in silver and gold prices back in 2011 and 2012, when the stock market was tumbling, the Federal Reserve was printing hundreds of billions of dollars that were aptly titled, “Quantitative Easing”, and the public was still reeling from the 2008 depression. During this time, silver rose to historic highs, approaching $50 per ounce, gold was approaching $2,000 an ounce, and the stock market was taking a brutal beating. It’s about to happen again as soon as the Fed is forced to raise rates.
Right now, silver is trading near $18.64 – $18.70 per ounce, the lowest it has been in four years.
I don’t typically make market suggestions or claim to have any qualified investing experience, but I do preach about owning tangible goods, which certainly include physical gold and silver. I’ve just made another sizable silver purchase because I do not believe the stock market can or will sustain itself. Whether you choose to buy-in at a 4-year low is up to you, but I’m confident that I’ll be writing another editorial this time next year when silver is trading above $25 an ounce. Whether I make a profit or not isn’t the point; I have protected my current wealth and created an emergency financial plan for a sudden market correction, and that is what truly matters to me.
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