I have been recommending silver since it was in the $4-$5 per ounce range. Today it is trading in excess of $33 an ounce.
I still think it is a good value.
Will Silver continue to go up forever? Of course not.
But in my opinion there is still a lot of upside to the silver bull market.
There will be shakeouts. There are always shakeouts in a bull market, so one has to be mindful that those will occur.
What’s the ultimate outside for silver? I don’t know? Nobody has that crystal ball. As an “educated guess” I would be surprised if it did not trade at least in the $75 range over the next couple of years.
This is simply my opinion. There is no guarantee of this; it is just an estimate looking at the technical graphs and silver’s history over the last 30 years. Don’t bet the farm, always stay diversified, but to my mind, silver still has considerable upside despite the fact that it has already increased 8 times over the last decade or so.
In addition to precious metals I feel people should diversify a modest amount of their dollars into some other stronger foreign currencies.
In my opinion the Chinese Yuan is the strongest currency on the planet. I say this because currency should represent products and production and the Chinese are extremely productive. It is for this reason that I feel their currency will appreciate. This and the fact that the Chinese have about $3 trillion in reserves.
The Chinese government has been holding down the value of the Yuan for many years. Recently they decoupled the Yuan from the dollar and it has started to rise (the Yuan was previously pegged / tied to the dollar – now it is on “its own” but the value continues to be controlled by the Chinese government.)
They don’t want it too high as it makes their exports more expensive and hurts their balance of trade. But I feel strongly that the appreciation of the Yuan will come – stronger and stronger as China becomes the world’s strongest economy. I take no joy in saying this, but unless Congress and the President have the guts to reverse the massive U.S. budget deficits, this is what will happen.
I truly hope they do. But history is not on their side. The trillion and a half dollar annual budget deficits of the Obama administration are turning the decline of the American Republic into a rout, while China emerges as the planet’s economic superpower.
Not pleasant news, I know. But for these reasons, I believe the Yuan is a good investment.
The real, long term solution to this mess is to base money on products. Institute a monetary system that provides enough currency to cover the nation’s products and real estate.
Sounds wild, doesn’t it? But think about it; you couldn’t inflate or deflate the currency, which is at the heart of the economic booms and busts.
Just a stream of consciousness here, but from what I see; whether commodity, production or product based currency, we should have an internal currency separate from debt currency, allowing us to trade with ourselves.
The dollar flow out of the country through the bag men at the Fed, with government agencies bonding everything that moves, The non-production sector is now so oppressive that a soviet style production stagnation seems inevitable if not here.
If somehow, a fiat currency which is not debt based could be set up allowing the production sector to trade intramurally; which only interfaces with the commissars, equity courts, aparatchiki (and all the other deadbeats and sociopaths) instead of having them woven in to the fabric.
The problem is that non-producers simply don’t get what money is. As long as we have any economic reliance on Lawyers–people who spend four years learning that lying, cheating, stealing, murder and general sociopathy is OK and necessary, then practicing it the rest of their lives– and economic schools which separate concepts of wealth building from actual production, the corruption will be systemic. The host will die.