For those who remember the Lone Ranger TV series of the 1950s, it always began with the rousing cry “Hi Ho Silver, Away!” Silver was the Lone Ranger's horse. We can apply that rallying cry to the current Silver market too.
Among precious metals people, who are frequently considered a subset of tin hat people, Silver now appears to have broken through upward resistance and pushing upward out of its long cup and handle formation. If you are unfamiliar with the cup and handle, it is a graphic formation on a price chart that resembles a tea cup with a handle as the name implies. A break out of the handle above the cup peak is very bullish. I like both Gold and Silver and though I can't predict the future, I see this as an opportunity to accumulate more Silver, perhaps on a dollar cost averaging approach. It is also a good time to consider the Silver and Gold Mining Stocks which history suggests lag but eventually soar in precious metals bull cycles. I use SILJ for an easy and liquid ETF featuring the Junior Silver Miners. It's more speculative but when it pops it pops good. GDX is ok for gold but I prefer the Euro Pacific Gold Fund managed by Adrian Day, a real pro. This Mutual Fund is part of Peter Schiff's family of funds and has been a good winner for me. It is available through most brokerages though some , like Schwab, charge a small transaction fee to add it. You can also buy it at Euro Pacific's site.
I realize that my blog is not an adequate educational format but I do like to bring some ideas to my client's attention, especially if I myself am acting upon them. I do not give investment advice and factually, the precious metals are as much a hedge against financial and global uncertainties as an investment with some capital growth potential. I think we are in a long process of resetting the Global Financial System and Gold will give you a seat at the table in any new system established out of the current chaos. It happens every 80-100 years and we are due. I am not saying the USD will immediately crash or lose its Reserve Currency status, but I do believe it will be in a down trend for a while. It could be volatile but grab the trend, don't be a day trader and you should ride it out holding some Gold and Silver and mining stocks. A little bitcoin is fine too but it is NOT digital gold no matter what Hodlers say, and runs more like a risk asset in sync with high tech stocks on the NASDAQ.
Take a look at the chart below and if it looks good to you, take a sip of that cup.
Best,
Donn Marier
DM-Your Own CFO
