[su_quote cite=”Warren Buffet” class=”wwd-post”]”Someone’s sitting in the shade today because someone planted a tree a long time ago.”[/su_quote]
Dear FutureMoneyTrends.com Subscriber,
Bitcoins go parabolic, our recommendation just a few months ago is up 723% this morning. We could be way early in calling this, but at this point we wouldn’t buy bitcoin with it moving like this, parabolic moves without exception always come crashing down. We will keep you updated though, for our paid digital currency report, trading tips, or to become a paid FMT member with regular updates, please click here.
These type of moves in any investment are what I like to call net worth game changers. Now typically you have to be pretty patient, we obviously got pretty lucky in the timing of our recommendation, we had no idea it would take off so fast. This isn’t normal so don’t be too hard on yourself if you missed out on this epic move in Bitcoin.
Investing with patients is your greatest asset, think of those who purchased Bitcoin back in 2011, they saw it rise to $30 and crash to 1 cent! So older investors have no doubt been through some rough patches and are feeling joy today.
For those invested in silver you recall that great feeling back in 2011 when silver essentially ran from the teens in the summer of 2010 to $50 by April. In fact, I remember from the mid 30’s to $49 it went up practically $1 a day, it felt great…Of course this was followed up with a 50% crash followed by short term rallies and more sluggishness for the past 2 years to where today we sit around the $27 mark.
I believe silver investors will have their day in the sun sooner than later, my personal prediction is that silver at some point trades in the hundreds of dollars, somewhere between $300-$500 per ounce. However a bubble in the market could send it over $1,000.
Looking further out into the late 2020’s or early 2030’s, the supply of silver could send it to being much closer to the price of gold, as the above ground available supply shrinks and mining begins to contract. Already we have seen ore grades in the U.S. collapse by 95% according to the USGS, all of our silver producing states have also peaked in production. Nevada, the #1 silver producing state, production is DOWN over 70% since 1997.
The next big winners
Sectors that I think are the next BitCoin, as far as overdue for a parabolic move goes…commodities like uranium, precious metals, and bio-tech to name a few. Health-care stocks are also a must in my opinion to own, the world is aging, and I think you can profit from these businesses for the next few decades.
***Look for some great interviews over the coming days with David Morgan, Chris Duane, and Gregory Mannarino.***
Questions and Answers
What is the deal with silver? Seriously, for the last two years just when you think it can’t get any worse…it does!
My friend David Morgan has a great saying about a market like this, [su_quote]”it will either scare you out or wear you out.” [/su_quote]Certainly a lot of us are being worn out, but the demand for physical silver is better than ever, in fact sales hit a March record at the U.S. mint, this is following other new records made in previous months. Looking at China, Russia, and other data that is public to us, we know that the story for silver is fully intact. Silver also has many growing uses including solar, which has massive support from both western and eastern governments.
The opportunity in silver comes down to this…
Raw cost, the all-in-cost of silver is roughly $28 per ounce, so as of today we are now entering into a situation where some of the miners will need to scale back if this continues. How long can a situation like this last? Years, uranium is a good example right now, last year it was natural gas, and as Rick Rule has pointed out platinum and Palladium are in this scenario now.
Supply, the fact is there is less above ground available silver than there is gold (about 5 times as much gold vs. silver). Plus thousands of more uses, however when you look at new supply including mined and recycled, new silver is only being added by about 9 ounces for every 1 ounce of gold. Yet investors are buying 50X more silver for every 1 ounce of gold purchased. This is unsustainable and is likely only continuing because of the COMEX, where silver is traded 100X the actual physical.
The nice thing about the demand for silver is even if the price quadrupled, it really wouldn’t effect industrial demand. For example, you have about 70 cents worth of silver in your $500 iPhone, a significant price move in silver just isn’t enough to alter its use or to make a manufacturer run out and look for an alternative metal.
On a technical basis, silver has 2 years worth of support at the $26 mark, so buying anywhere in this range should be buying at or near a bottom. However, as you all know markets can be irrational, so if we see it fall past $26 than all bets are off, once it drops below $26 we do have some support at $22, but the next major support area doesn’t come in until $17 per ounce. I DO NOT think this will happen, I am just giving you all the information that is available. IF we saw something like this, we have to consider that the mining companies would literally be shutting down mines if prices remained low, which of course would only cause prices to rise dramatically.
The best way to profit from silver right now is to buy high quality mining companies like Endeavour Silver, First Majestic Silver Corp, Silvercorp Metals, Pan American Silver, or Silver Wheaton. Only buy the mining shares you can stomach the volatility and are looking at the big picture because if silver does go down significantly from here, these shares will get bloody!
SHARE DISCLOSURE: I personally own Silvercorp Metals and Pan American Silver.
End Question and Answers