OK now that Silver has eclipsed the 20 FRN mark. Beware of the possibility of the psychological investor. Those are the folks who do not buy or sell based upon facts but rather through fantasy.
Fund managers and Brokers tend to fall into this catagory. They are SURE that gold and Silver will do something but they are not sure what. And generally about 6 months agao they were sure ut would do nothing. They are after commissions not profits. And now that Gold and Silver are higher, their % is going to make it worth their while to get you to add it to your paper portfolio. They will never advise you to take posession for then they would be out of the loop. You would no longer need them and you might close your brokerage account. The ETF's ( Electronily Traded Funds) are a good example of this. And where as they seem like a good idea if you can eliminate the brokerage house and use them as money in and of themselves, they are in fact,(IMHO) Just another way to possibly create something out of nothing at worst, or a way to keep all your investments tied to your BEAST number at best. That being said, the ETF's have over 650 metric Tons of Gold secured in them, (over 20 million 800 thousand ounces) this is a supply drag, and helps to push Gold higher. South Africa still can't figure out how to run an electric company and so they will be running on at most 90% power for the next half decade, China is consuming way more then they are producing, and the Dollar, thanks in part reciently to Greenspan being honest with the Saudi's is falling like the trade towers. Inflation is at about 7% possibly much higher on the CPI field, and on the commodity range it is about 20% with Wheat, Corn, Suger,Soybeans,Copper,Lead,.Silver,Gold,Lumber,Zink,Rhodium,Platinum, all well into to multi-year Double digits.
Outside of a deliberate manipulation of FRAUD. in My Opinion there is no reason in the world for Gold and Silver to go any place but UP. But then again those in charge have been known to change the rules.
Click here for a radio broadcast that I did with some of these figures...HERE
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