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International investments can help protect
against a falling US dollar. Precious metals at times also
protect against currency turmoil. In 2004 one of our messages
shared the fact that I speak at many global investment seminars
with Michael Checkan, one of the true foreign exchange and
precious metal experts in the U.S. His said that this was the
decade of the commodity. “The
bull market in commodities had a number of years to still run”.
His prediction was that the dramatic upward moves in the metals
would only be coming in President Bush's second four years
and as the decade for commodities we had something to look
forward to over the next 7 years. He has been very correct!
So I took note of what he has now written about silver and
share it here with you.
He believes that this bull market will continue throughout
this decade and into the next, something like the volatile
markets after President Nixon closed the gold window in August
1971. He outlined many reasons why reasons why including increasing
demand for physical commodities, rapid growth of Asian economies
and supply shortages, which are not likely to be corrected
quickly. He also feels that the huge US fiscal and foreign
trade deficits will push the US dollar down and commodity prices
up.
In Michael’s opinion, silver
holds one of the best opportunities for reward. The price
of silver since January 2000 has increased from $5.40 per
ounce to $14.28 per ounce in April 2006. This is a 175% increase
in the last 5 years. Gold's all time high was $850.00 per
ounce while silver's all time high was $50.00 per ounce.
The all time high for gold could come while the all time
high for silver would need multiples to be reached. Bottom
line, silver is still cheap at $14.28 per ounce.
Just keep in mind the warning we shared about gold yesterday.
Gold and silver are in a price stampede. Their prices will
rise too high and then drop. Some investors will make a lot
from this because they do not get caught in the mania. Most
will lose. Some will lose a lot. Invest intelligently. By all
means invest in gold and silver as insurance against currency
turmoil and inflation. But, if you speculate and especially
if you leverage your speculation, do not risk more than you
can afford to lose.
If you’re interested in adding silver to your portfolio,
Michael’s firm offers the Perth Mint Certificate Program.
Precious metals purchased from and stored with the Perth Mint
are fully guaranteed by the government of the State of Western
Australia, a politically and economically stable government
that boasts an AAA rating from Standard and Poor's.
For more information go to http://www.assetstrategies.com
Learn about investing in top value shares, currencies, gold
and silver. Join Merri and me at our September 15-16-17, 2006
International Business and Investing Made EZ course in North
Carolina. Review where to invest and do business now and learn
which markets and currencies may be strong in the year ahead.
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