When trying to do something successfully for the first time, one of the strategies I find most helpful is to consider the opinion of someone who has done it before. And certainly with investing, listening to traders who have a track record of success can be incredibly insightful.
Along those lines, something that I’ve found striking as I’ve been fortunate to interview many of the world’s most successful investors, is that they all seem to share the same sentiments regarding gold and silver.
Certainly Jim Rogers fits into the category of the more successful traders of the past 50 years. And if I were to summarize our interview down to one thing Jim said, it would be how he mentioned that “when people lose confidence in government, they always buy gold and silver.”
So while many in the mainstream who have been watching too much CNBC often react to gold and silver investors as if they’ve just arrived from another planet, I find it interesting how I have yet to find a single investor who saw the subprime bubble coming in advance, that doesn’t now advocate owning silver (perhaps with Warren Buffett being one exception – although he was a large silver holder at one point).
Sure. You can find plenty of bankers on Wall Street who see absolutely no appeal in gold or silver. Yet how many of them can explain how the United States treasury is going to undo $22 trillion worth of debt? Or $200-plus trillion of unfunded liabilities in Social Security and Medicare? Or how the Fed is going to ever normalize interest rates without crashing the system.
Personally I’ll take Jim’s opinion over any of the folks I once worked with on Wall Street. Or you could take the opinion of Rick Rule, Doug Casey, or Peter Schiff. Or even better, you don’t have to take anyone’s opinion for it. But rather just look at the debt loads and quantitative easing balances, while factoring in that the Federal Reserve is already abandoning any further significant sequence of interest rate hikes.
It’s also interesting how you rarely even hear anyone argue that gold and silver are going to go lower from current levels. And why would they? With both metals trading close to or below what it actually cost many of the miners to dig it out of the ground, while further short term paper manipulation is always possible, how much lower are the metals really likely to trade?
In the end, the simple answer is that Jim Rogers is likely quite correct. That when people lose confidence in governments and money, which is happening as we speak, they always buy gold and silver.
That’s incredibly likely to happen this time around again. And if you have any questions, you’re welcome to email me here, or call Miles Franklin at one 800-822-8080 if you would like to purchase physical precious metals.
-If you have any questions about this article, what’s happening with the Fed, or the precious metals market, you’re welcome to email me here.
-To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).
-Or get Miles Franklin’s detailed report on why the price of silver is set to explode.