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Silver: lifeboat or iceberg?

Are you a Titanic investor?

You might be if you would be more than irritated should silver drop from $31 a troy ounce to $21 in the next few months.

With all the stories about the 100th anniversary of the doomed ship and the end of the pre-World War I era it has come to symbolize, I have decided to throw in my two cents.

The builders of the Titanic called it unsinkable.

The passengers believed it.

They didn’t think anything of the fact that there weren’t enough lifeboats should the worst happen.

Why?

Because the worst could not happen.

But it did.

At that point it was too late to worry.

Is that how you think about silver?

The worst can’t happen?

You don’t need a financial lifeboat?

Now is the time to think about this.

If silver takes a plunge, would it affect your day-to-day cash flow?

Would your children’s college funds be drained?

Would it materially affect your retirement?

If you answer yes to these or any similar questions, now is the time to build a lifeboat.

A silver investment can be the smartest investment you have ever made or the worst. In my lifetime both have happened in four different cycles.

But neither outcome should make you change your way of life.

If it can, now is the time to modify your holdings.

To do this is not exciting. It is not the stuff of dreams. But being a lifeboat builder is necessary work as Titanic passengers discovered too late.

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3 Responses to Silver: lifeboat or iceberg?

  1. Tom Snyder says:

    While I sold my silver at the Chicago Central States Show in 2011, we had a club member who was faithfully buying it up. He told us that he had 80 to 90% of his net worth in silver. Well, talk about having all your eggs in one basket ! He hasn’t shown up at the club meetings lately.

  2. swellford@steelservicesinc.com says:

    If silver falls to $21 in the next few months, count me in on buying. The key is not overextending your portfolio in one particular asset. However, the long-term dynamics of silver is excellent.

  3. schnauzer says:

    I’m holding on to all my silver and not blinking an eye. If it does drop to $21, I’m just going to buy more and more and will still be buying aggressively as I am currently way before that. I firmly believe in the philosophy, “Don’t wait to buy silver, buy silver and wait”. For the life of me Dave, I can’t understand why you appear to be such a “Silver Hater” in all your writings regarding the subject.

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