Mike Maloney released a great video this weekend, bringing a great long-term perspective on silver, and where the dollar is ultimately headed. As Mike explains, “There is no scenario where gold and silver do not rise.” Ultimately, they are destined for a far higher price. Mike warns against buying silver on margins, buying futures and options and using the ETFs, because you can be scared out of the game much more easily. Buy the physical metal with cash, not borrowed money, and stay out of the paper markets. Mike also tells of his experience buying gold right before an extreme dip in price, which might have flushed out a weaker hand. However, looking back he would jump at the chance to buy at the price he did that day. Ultimately, the purchasing power of gold and silver must increase dramatically.
“If all you have is digits, and not ounces, you are going to be in trouble.”