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Message: Black & white.

Black & white.

posted on Jan 16, 2008 07:25AM
We who deal with the stock market tend to be very reactionery and look at things as if they were only black and white instead of most things being just shades of grey.

You will hear statements as:
The dollar is dead.
Gold is the new king.
Silver is the ideal place to be.
Uranium is the energy with an answer to future.

Superlatives that have truth behind them but by all means they are not absolute. It is our nature to overstate for the sake of emphasis.

The dollar is by no means dead. It has been merely dethroned from Emperor status into just one of the still major kings (Gold and Euro being the others).

Gold, having been forced into exile, has returned as a proper king again with the promise that it will likely achieve Emperor status for a while. Silver, it's brother in the PM sector gets a promotion from a Duke to a Prince ( also former Dukes now lower princes, platinum, palladium and even lowly copper?).

Silver is the place to be eventually. Gold moves first closely followed by silver.
Bullion of the two is the place to be now. Shortly followed by the big cap stocks of the two and last but not least are the small cap PM sector stocks that have shown that they hold substantial resources. Bullion to be at least 10 percent of ones portfolio while you aquire low priced stocks with potential( perhaps to 50% of portfolio). At the end, end up with more silver then gold for it will be last but with potential for higher gains due to more serious devaluation and shortages.
When it all explodes it will not be a time for waiting but a time when investors will be seeking quality stocks to invest in because there will be a shortage of them.

For those particularly in the US, do not trust brokerages and investing institutions to hold physical for you, get hold of it yourself for you could be subject to confiscation at the end. (It is ironic that the 'land of freedom' is more likely the one to curb your freedom.)

This is not advice ( want advice, pay for it ) just a subject for contemplation and discussion.
Cheers to the prospects that await.
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