Thursday, April 21, 2011

the right reasons to be long silver

I'm really warming to Kid Dynamite's blog and reasons include this post today on being long silver. I suppose that in the end it doesn't really matter if you're long silver because of the impending collapse of the dollar or the impending rapture or a bad translation of a Mayan prophecy or whatever other madcap balderdash you want to believe, because as long as you're long PMs (which really means gold, but the pseudo-PM silver is getting all the headlines) you get to enjoy the same ride (and continue in your fantasy worlds and think you're right about the world's end or the lack of physical silver out there). But what KD does is point out the sensible, well-adjusted, non-fearmongering reasons why long silver (including its most liquid form, SLV) has been, is and will continue to be the right side of the trade.


I'd add one thing to it, though. He's right on that the world isn't coming to an end and this is why I'm happy to sit through a rather dreary period for PM juniors and watch them underperform to silver and even gold bullion, because the current risk-off mode for the PM juniors will come to an end and they'll make for the most magnificent gains once the market decides to stop being so chickenshit. You can sum it all up with a phrase that's close to the centre of value investment, a phrase which found its way into The IKN Weekly edition 102 last Sunday.

In the end, price governs risk.

That's all. Have a nice day. And go read Kid Dynamite's thingy today, because reading smart people is smart.