A couple of weeks ago, gold and silver began a heavy correction — especially silver. This was caused by a variety of reasons, mostly fears of a European caused massive recession or worse.
Whenever there’s fear of an economic slowdown, people flood to cash — and when that economic slowdown is caused by a a problem with the Euro, then people will flood to dollar cash. That means everything prices in dollars will most likely take a dip, or at least will be priced lower than they would be alternatively.
This is hard for some people to wrap their minds around, because they would generally prefer holding gold and silver if the world economic system collapsed — but the problem here isn’t a fear of complete economic collapse — the immediate problem is fear of a strong recession brought on by Europe.
Even then, physical bullion and paper bullion are two different animals — I don’t have any “paper” gold except for money I have in the Permanent Portfolio Fund. The gold and silver I own is in physical bullion and in storage — I’m not interested in cute ETFs or mutual funds or even stocks. Those are extra risky and simply require too much research per investment for it to mix well with my strategy.
What Should You Do?
So what should you do? That depends on your strategy, like all investment choices. There is rarely any objective “good time to buy” or “good time to sell” that works for everyone. Every financial goal is different and every portfolio should be matched up to that plan.
For myself, I will say that I’m still adding gold and silver to my portfolio on a near daily basis through SilverSaver.com. Like I’ve said over and over, I plan on doing this even if gold and silver take a huge correction. I’m buying gold and silver for the sake of security, not “get rich quick” schemes. The fact that I’ve made a lot of money over the years because of this is just icing on the cake. It’s just the extra, to me.
What’s Going On?
He also predicted that Europe would make gold and silver fall even more here. He was right. That article is still 100% relevant for right now’s market.
Gold and silver have been hit hard in the last month or so because people are flooding to the dollar because the dollar is the best currency safe haven. And that says a lot about the rest of the currencies in the world.
An Investing Strategy That Works
By the way, I’ve hinted a lot about my investment strategy over the years. I adhere to the “permanent portfolio” strategy, only I have a slightly different take than the traditional make-up.
I’m putting the finishing touches on a 10+ page report that explains exactly how anyone can set up a similar, boring portfolio. It is only available to people who are members of Safe Haven Reports, a brand-new monthly publication that focuses on the most useful and politically incorrect information when it comes to economics and investing.
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