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Don’t fall for the silver commercials

Posted by John T. Reed on

One of the gold companies has also been touting silver lately. I bought some this past year. I wanted my wife to sell some gold she inherited but she would not, so I asked if we could at least convert half of it to silver. She agreed.

So I watch the gold eagle and silver coins wholesale prices in each weekday Wall Street Journal (listed in a daily section called “Cash Prices”)

Silver has been going down lately. Since I bought it as a hedge against USD inflation. The daily price of silver is irrelevant to my use of it. In the event of USD inflation, the USD price of silver and other commodities will soar. The real price (adjusted for inflation) will probably do nothing. That’s the definition of a hedge against inflation.

The silver pushers make all sorts of meaningless statements to get people to buy silver. One is Rich Dad Poor Dad author Robert Kiyosaki saying “I love silver.” He’s an idiot. I long ago called him a liar at my web site. One of his companies went bankrupt. And his loving silver means absolutely nothing. Warren Buffett loving silver—he does not—would mean absolutely nothing.

They also keep saying that silver is still well below its prior peak. But they do not mention that was an extremely unusual situation: The Hunt Brothers tried to corner the market in silver March 27, 1980.

https://en.wikipedia.org/wiki/Silver_Thursday

I do not recommend silver. One reader of my hyperinflation book thanked me because he bought silver on the recommendation of my book. And it went up after he bought.

My hyperinflation book never recommended silver. It just listed the advantages and disadvantages of it. And my analysis was that when you net the advantages and disadvantages, silver is a BAD investment.

See my article about gold which generally also applies to silver:

https://www.johntreed.com/…/60940227-disadvantages-of-gold-…

Here is an article I wrote about silver when its price dipped a lot:

https://www.johntreed.com/…/74867203-it-may-be-time-to-cons…

No one knows what the price of silver, or any other publicly traded asset, will be tomorrow. Not me. Not Kiyosaki. Nobody.


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