Another Viewpoint on SilverI saw this clip in the Laissez Faire Today newsletter today on silver. I thought the Board would find it to be an interesting commentary:
I just found a great article about silver written by Adam Hamilton, CPA. He's co-founder of the pro-free market contrarian financial service company, Zeal.
His sentiment on silver, I believe, is spot on.
His original article on SilverDoctors' site is a bit verbose. But the tail-end (below) puts it in a nutshell…
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"Today's abnormally low silver prices," Hamilton writes, "can only be rationalized with the false belief that the global financial markets are no longer cyclical, that gold and silver will fall forever while stock markets rise forever.
"With even the most rudimentary knowledge of market history, that fallacy is laughably silly! Prices perpetually rise and fall, and the longer any prevailing trend is in force, the more likely it is overdue for an imminent reversal.
"Silver is certainly no exception to this universal market rule. And I suspect that's why 2014 has enjoyed massive silver stealth buying by professional investors.
"While individuals and most professionals have succumbed to the bearish groupthink and capitulated, there is a growing minority of traders who see vast opportunities in buying dirt-cheap silver low. And these guys have been
"The best time to buy low is when no one else wants to, when a sector has been abandoned. And that describes silver to a tee today. After multiplying their wealth
"Wall Street constantly propagandizes to convince investors to buy high and sell low, to add stocks near record highs and sell precious metals near extraordinary lows. All Wall Street cares about is continuing to take its percent-of-assets-under-management fees by keeping capital in the stock markets, not about clients' sans-serif"=">by 12 times during silver's last secular march higher in the 2000s, smart contrarians are positioning for silver's next life-changing run-up.
"The bottom line is silver has experienced strong stealth buying by professional investors all year long. These contrarian traders are fighting the extreme bearishness plaguing this metal because they know well that markets don't move in one direction forever.
"Everything is cyclical, even silver. And after such a long miserable decline to such brutal lows, silver's next major move is going to be a massive new upleg.
"This rally will initially be sparked by speculators rushing to cover their record silver-futures shorts.
"These highly-leveraged bets are exceedingly dangerous, and will have to be closed rapidly when silver starts climbing. This silver surge will entice in much new capital on the long side.
"And with stock investors and another group of futures speculators already accumulating cheap silver all year long, they're ready to flood back in."
In short, silver's a buy.
Yes, it could go lower. Yes, you're going to have to be patient to see those life-changing gains. But it'll regain its footing.
And when it does, it'll be a spectacular sight. Especially if you're invested.