Sometimes it's a good idea to take a step back, zoom out, and look at the forrest - not the trees, or the leaves.
Taking a look at this 12-year long section of the Silver price, the last few years have been rough for Silver Stackers - showing a move from $50 down to the $14 range. Price has been moving "sideways" over the last couple of years. A strong consolidation, like what we are seeing here, is very supportive of a future move upwards.
But, I have great confidence in the fact that Silver, as a precious metal, will not lose its' value over the longer term. In fact, most Silver market experts have already called the bottom for Silver - and I agree that we have seen the bottom. On top of that, demand for silver to be used in industry is projected to increase over the next several years - making silver more scarce. This is not to mention the fact that the top 15 silver mines, worldwide, have been reporting falling ore grades for several years running - making silver more expensive to mine, and more scarce. So, economics 101 says that rising demand, paired with falling supply, equals increased price. It's not rocket science.
Even a bonehead will be able to make a good bit of profit by buying silver and gold - but only if they buy it right now, while the price is still very low. Once the silver price starts to run up, everyone will want in to buy some - but there won't be any to buy. Silver premiums are already on the rise, and bullion dealers are taking longer to make their deliveries on orders. I think silver sellers will disappear once silver starts passing $24, $25, maybe $26. If you don't have any before then, you are S.O.L.
This long, bowl-shaped chart formation is a strong sign of a very healthy bull-market starting right now. The price movement will likely be trending upwards for the next few years. During the next few years, we will see a couple of "blow-off tops." I will likely take one of these opportunities to take some profits and - if the real estate market comes down again - buy some land, and/or a house.
For me, the best scenario would be to see the precious metals asset class move way up, and the real estate asset class go through another "popping of the bubble" scenario. I think (and hope) that this is a likely set-up for me to take advantage of in the future. I have been planning for this exact scenario for about 7 or 8 years, getting into a large position of precious metals while the price is absurdly low.
What do you think? Will my ideas come to realization? How many more years will it take for us to see the Silver price run up? What are you planning to do with your own Silver stack?
DISCLAIMER: I am not a financial advisor. Anything in the above content is meant for educational/entertainment purposes only. Do not make trades based on this article. I am not responsible for any financial gains or losses you make in regards to this information.
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