It is hard to find a good investment now. Stocks, bonds, and commodities are not cheap. So what is the best thing to do? Buy the thing with the best chart and favorable supply and demand. Gold and silver. These markets cannot handle big investment flows like equities and bonds without going much higher. The steady pressure to chase performance, lack of good investment ideas, and weak economy make gold and silver the perfect performance vehicles. We are right in the middle of the bubble. I can't imagine it ending without some huge up moves. Traders will flock to the precious metals, whether the market is up or down. I see this continuing for at least another year.
I expect weakness today, the market is grinding lower and there hasn't been a flush out yet. It should come soon.
Subscribe to:
Post Comments (Atom)
Posts
1 comment:
gold and silver (and also agricultural land and other things like that) are no bubble. we are in the middle of a long term rally and i expect to see gold trade at 3,000 to 5,000 dollars in say 3 years with silver higher than 100 at that time. this has to do with currency debasement and central bank money printing and their inability to print gold or silver. in silver the supply and demand is extremely bullish and in gold, china and india can easily buy the entire supply this year, if they want. the chinese are trying to be cool about it, but they are desperated as their fx reserves are all in paper and only less than 2% in gold. this stuff is going much much higher.
Post a Comment