It may be hard to wrap your mind around this but nothing can go up and up and up without dropping. Instead it goes up for a finite amount of time before dropping. Let's look at silver hitting $50 an ounce. It was thought impossible! Let's look back to 2003. Silver actually went below $4 an ounce. Over that 8 year time looking back you might think it only went straight up.
However for every few steps up there were some steps back. See... There are people who do not truly understand money and metal. These are the ones that may have bought at $10 but have sold out at $20 only to miss seeing the price more than double again. They like to take profits. The smart ones will sell just before it dips and buy just before it resumes an upward trend. Paper money is not profit. Look at the value of the dollar over the last hundred years. Silver is on an upward trend because of the inflationary nature of paper money.
But before I jump too far ahead I want to explain that if it weren't for people taking so called profits, which is why we see huge drops in the metals markets, you and I who are smart enough to buy and hold onto our metal can benefit from a dollar with more purchasing power. After all, the lower gold and silver prices the stronger the money. Just look up gold prices in a weak currency such as the Zimbabwe dollar. The more you can buy with a unit of currency the stronger it is.
The lower commodity prices are, for the most part, the stronger our money is. This does not mean our economy is stronger but it means you will derive more fruits from your labors. Instead of your dollar buying 1/50th an ounce of silver it will now buy 1/35th of an ounce or so.
But this huge selloff could make some nervous and it might for e silver down another ten per ounce. Do you know what this means? Either now or soon will be your last best chance to buy silver because it may head up again and not stop until it hits $80.
I would rather have chances to buy silver at price lower than where it went than to not have those opportunities. Aw hell I guess I'm just trying to say that instead of sellng when everyone else is, buy!
When silver works it's way up it took time and as a result of poor fiscal policy we seen a rapid acceleration this past month or two. Inflation will steal wealh from you without you knowing it. This is why people buy gold and silver. Rome collapsed. Guess what their gold Denari are worth now? The same as they were then. When America collapses, what would you want? Paper that is unfunded such as happened to the confederate dollars in the civil war or do you want gold and silver that stood the test of time all through the ages?
Gold and silver transcends culture, race, background, languages and customs. It speaks a universal word to all peoples: wealth and security against corruption. Remember, when you see big drops In prices, it's not that it's become a bad investment, as much as it means it became a better investment!
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