Asking Strangers If They Want a Free Candy Bar or a Free Bar of Silver Bullion
InvestorSarfari Comments:
Question: Would you take a Hershey Bar or a 100oz Silver Bar if it was offered to you at random?
I would bet most of our audience would choose the silver, but as Mark Dice found out, it was the TOTAL opposite. Hoping that those who chose the silver were edited out for effect. But if indeed the majority chose chocolate, we shouldn’t be surprised why mining stocks are such a bargain.
Silver prices have been trending up. Historically its been a safe haven to park your money, just like gold. There’s been wars and territorial battles over it for centuries. It also has large industrial uses in electric cars, solar, space and the medical sectors. All have a growing demand for this metal going forward.
So if a random person pulls you over and asks if you care to take a bar of chocolate vs a 100oz Bar of silver, make the wise decision! (see analysis below if still confused!).
Silver. Is it a good time to buy, or not?
To better answer, let’s look at a few key trends in the current economy and compare it to the past.
The United States has been in the forefront of a dangerous trend: debt spending. They’re not the only one. Governments around the world have been printing and spending money irresponsibly, under the guise of health, defence, climate, “stimulus” and for other politically dubious reasons.
The national debt of the United States has already crossed the $30 trillion mark (far surpassing that of other countries), making it difficult to even service the interest payments, let alone pay down the principle.
The issue is made worse by rising interest rates, which will make it considerably more difficult for the U.S. government to pay the interest on its growing debt. The consumer is also suffering greatly because wages haven't even come close to keeping up with the soaring costs of goods and commodities.
Everyone is experiencing the rising trend at the grocery checkouts and gas pumps - and many are experiencing disappointing annual salary reviews. That’s if you even had a chance for a review. Tech employees are losing jobs as fast as the time it took to blend their free smoothies in the office lounge. This move to trim salaries across all sectors will continue into 2023.
In short, the economy is in a bad spot. Stock market volatility is still high and the jobs market is in recession. Inflation is on the rise, along with interest rates. With a new recession in full swing, this has led many analysts to believe that the market is right for silver to shine. We agree.
We've seen these SAME historical conditions that paved a period of strong demand in silver.
Silver has finally seen some movement, with prices up 12% since the beginning of the year. This comes after a long period of relative calm, where silver was seen as a boring asset to hold in your portfolio. It was also considered something of an albatross for investors, who had been stuck holding the metal in recent years without seeing much return from their investment.
Within a year, silver might potentially double in value. The price of silver has reached as high as $50 per ounce, but it’s currently trading around $23, which is a historically low price that won't stay for long, given the high rate of inflation in the country.
This is truly an invitation for value-focused investors to get in at a terrific price – but don’t expect this window of opportunity to last long. There are a few other factors that affect silver prices: demand from industrial applications such as electronics or solar panels; supply from mining companies; and political factors like how Russia and China control a large chunk of global supply and demand for the precious metal. ALL of these are favoring upward pressure, adding to the similarity of historical conditions.
Regardless of how you decide to enter the long-commodities trade (physical coins or bars, contracts or mining stocks), the key is to get started soon and leave some opportunity for purchasing more. Expect incredible long-term returns since the consequences of irresponsible governmental and central bank policy will stay with us for a very long time.
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