Tuesday, October 8, 2013

Thoughts on gold and silver

Gold and silver finally seem like they are ending a year down in price. Like Jim Rogers said, given their unusual 12-year straight bull-run, they are likely to have an unusual process of bottoming too. In my post on 22 Aug 2009, I made some predictions just for kicks. They can be viewed here:
http://silvernjin.blogspot.sg/2009/08/greatest-wealth-transfer-ever.html.

In my mind, I wish the bottoming process takes a longer time to complete. Given that the fundamentals are so good, the longer it is that prices stay this low, the more opportunity there is for one to buy. This year alone, I've increased my position by 50%. If prices continue to go sideways or fall in the months ahead, I hope I can increase my gold/silver holdings by another 50%.

Anti-gold bugs everywhere, however, continue to criticise this investment. When asked why it is a bad investment, the answer is always the same - that they think the metal is useless. They better hope that the market also think the same way in the years ahead. Other than this bit of argument, there isn't any other thoughtful analysis by them. History, fundamental economics, and the way currencies work are totally ignored. These people will rather attack precious metals investors than focus on their own money-losing investments. They are the only source of headache (but yet, fun) for me. I guess I have no choice but to put up with it, given that I am so outspoken about precious metals and the evils of central banking and market interventionism.

The price of silver continue to be irresistible for me. I am looking to start buying big-time into agriculture as well - starting from sugar probably. In the next few months, I am producing some nice reports on precious metals and agricultural commodities for those who are interested.




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