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The Best Opportunity of Your Life in SilverBy
Monday, July 14, 2014
"There's a situation in the silver market now that we absolutely must take advantage of," I told my True Wealth subscribers last month.
"It is the best opportunity to buy silver in over a decade – and possibly one of the best times you will ever see in your life."
"Silver is down by 60% from its peak in April 2011," I explained. "Compare that to gold... and you can see just how extreme the bust in silver has been."
Take a look:
 As you might imagine, when an asset falls by 60%, investors give up on it. And that's exactly what happened with silver...
I like to look at "real money" bets on commodities and currencies to gauge investor sentiment. One way I do this is by looking at the government's Commitment of Traders report. It shows what real futures traders are doing with their money.
When I wrote to my subscribers last month about silver, I said: "based on the real money, silver is more hated today than any time in the last decade."
Looking back over history, silver had been this hated three times: 1997, 2001, and 2003. In two of those three cases (1997 and 2003), the price of silver roughly doubled in about a year.
 I told my paid subscribers: "I'm optimistic that silver bottomed in late May, and the next move up has started... I'm perfectly happy to buy silver today – at the most hated point in over a decade." For years, my plan has been to focus on the stock market while the getting is good – and then start to move more toward "real assets" as the stock market booms nears its end.
I still believe we have time to make money in stocks... But I couldn't pass up the opportunity to buy up a legitimate precious metal at its most hated level in over a decade.
My friend, I believe you will want to own precious metals over the long run...
We are in an epic struggle between inflation and deflation – as I have explained over the last week (with examples from Jim Rickards' excellent book The Death of Money).
One of these two will win out... But will we see uncontrollable inflation? Or punishing deflation? Today, it is hard to tell... But one of the interesting conclusions from Jim's book is that the price of gold will likely soar in either outcome...
If gold soars, without a doubt, silver will soar, too.
My call last month on silver was exactly right for my paid subscribers. But I don't believe you've missed it yet at all...
Silver has rallied a bit... but you can still buy silver today at late-2010 levels... Silver doubled in price in less than a year after that.
Also, you can trade silver today... You could buy the silver exchange-traded fund today, the iShares Silver Fund (SLV), and set a stop-loss at this year's lows (around $18). As I write, that's only about 12% below today's price. So you could set up a trade with significant upside potential, but only roughly 12% downside risk.
Silver today is no longer as hated as it has been in a decade... but I think it's still a good trade to make today...
And based on Jim Rickards' conclusions about inflation and deflation, I want to own precious metals for the long run. The upside potential – if Rickards is right – is tremendous. And today is about as attractive an entry point as you will get on silver...
Don't miss it...
Good investing,
Steve
Further Reading:
Steve also thinks there's a great opportunity in silver coins. "If you're interested in silver, [MS65 Morgan Dollars] are the best way I know to invest today," he writes. "We have a real shot at triple-digit gains, even if silver prices go nowhere." Find out why right here.
Two weeks ago, Steve went into detail about the battle between inflation and deflation he mentions above. To learn more about it, check his essay, "The World's Most Important Financial Battle Is Coming to a Head."
Market NotesNEW HIGHS OF NOTE LAST WEEK
Intel (INTC)… Big Cheap Tech
Apple (AAPL)… Big Cheap Tech
Johnson & Johnson (JNJ)… Big Pharma
Royal Gold (RGLD)… gold royalties
Franco Nevada (FNV)… gold royalties
Randgold Resources (GOLD)… gold miner
Freeport-McMoRan (FCX)… copper and gold miner
Alcoa (AA)… aluminum miner
Hess Corp. (HES)… Big Oil
ConocoPhillips (COP)… Big Oil
National Oilwell Varco (NOV)… oil services
Archer Daniels Midland (ADM)… agriculture
Kraft Foods (KRFT)… Big Food
Yum Brands (YUM)… Taco Bell, Pizza Hut, KFC
Colgate-Palmolive (CL)… household goods
Walt Disney (DIS)… entertainment
Time Warner (TWX)… entertainment
Time (TIME)… magazines
Wyndham Worldwide (WYN)… hotels
Hyatt Hotels (H)… hotels
Marriott International (MAR)… hotels
Spirit Airlines (SAVE)… airline
NEW LOWS OF NOTE LAST WEEK
Barclay's (BCS)… European bank
Deutsche Bank (DB)… European bank
Lumber Liquidators (LL)… lumber
Molycorp (MCP)… rare earth minerals
Krispy Kreme Doughnuts (KKD)… donuts
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