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.