What's up ,
Right now it seems the only thing that is certain is that nothing is certain. When uncertainty is high, silver is a great investment. It loves a good monetary crisis. Fourteen years ago Porter Stansberry made a comment about why silver spikes in a financial meltdown. You will laugh inside as you read this because everything he is talking about is tame compared to the monetary policies and economic situation today in 2020. When he says “phase II”, he is referring to the three stages of a monetary crisis.
Phase II happens as the government begins to take action to halt rising prices through force. The government will not cut its own spending, which is the primary driver of inflation… It will not begin to address the unsustainable nature of entitlement spending, or the current value of its long-tail obligations…
Instead of addressing the genuine causes of inflation in the United States, the government will begin to tax, regulate, and even imprison what it labels the culprits. These efforts will only exacerbate and accelerate the rise in prices… Once Phase II begins, more and more people have tangible evidence that something has gone badly wrong with the economy. They begin to hoard. Rich people hoard gold and silver.
Porter Stansberry
Can you see anything he mentioned happening today? The government has accelerated their own spending and are currently regulating everyone’s behavior. Because of this, rich people are hoarding gold and silver. They want to exchange their depreciating cash for precious metals.
Because it’s on sale right now. We know from the current conditions that we should be buying precious metals, and the gold to silver ratio will show us which metal to buy. Historically, gold and silver hold a relation at a ratio between 20 and 100. In other words, at any given time, gold is somewhere between 20x and 100x more expensive than silver. A good indicator of how cheap silver is on any given day is this ratio. At the time of this writing, the ratio is sitting around 80. That’s on the high end, which makes silver the better buy. When the ratio drops then gold might be a better look. Because the ratio will gravitate back to the low end like it always has, we can safely expect silver to run up to the $40-$50 range from the $25 spot price it is today.
Kind of a dumb question and the answer is no. Owning silver does not put cash in your pocket each month. In my books, if it isn’t putting cash in my pocket each month, then it really isn’t an investment. My personal reason to buy silver is not to strike it rich, rather to protect the capital I have through this pending monetary crisis. Yes, the money we put into silver might double over the next couple of years, but the one sure thing based on the current trajectory of the US monetary policy is that the dollar will be worth less tomorrow than it is today. Every day, hoards of noobs put their stimulus cash into Robinhood while the debt bubble increases along with the likelihood of our country electing a POTUS with a socialist fiscal policy. When everything blows up, we want our wealth protected. The high chance that it will double in value in the meantime is an added bonus. Then we can all sell our silver high and buy cash flowing assets on mega sale.
Financial education. A stock pick here and a killer real estate property there will not give us financial freedom for our families. We need to increase our education daily in order to become the type of people that wealth flows through like a mighty river, blessing all the life that it touches. As we study principles of cash flow, finance, real estate, stocks, and more on a daily basis, we will become wealthy on the inside. The lagging results of cash flow to cover monthly expenses, free time to serve, and wealth to bless will naturally follow. Start small, be consistent, and learn a little bit every day! If you don’t know where to start or want some recommendations, text me at (509)-655-5446 or read some other content I've shared like this one about stock options.
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