Since I bought my silver bars when the price was $29, I definitely can cash in my profits now.
My friend feels that I have made enough profits, and now is the time for me to sell my silver bars.
My answer must have shocked her.
I tell her that I am not selling silver bars now.
On the contrary, I want to buy more silver bars.
She says that the price is so high now, it is a risk to buy more.
I do not agree with her assessment.
Looking at the macroeconomic factors, I cannot see how the price of silver will drop in the near future.
While silver price volatility is expected, even a one day drop of 5% is not shocking, the long term trend is still an upward trend.
There is simply no way the US economy can boom in the near future.
Many people are out of jobs, and they are not getting out of jobs willingly.
It is not as if they are rich enough to stop working forever.
The US debt will not just go away.
The US dollar will keep declining. The weaker the US dollar, the better for the economy in the long run.
Weaker US dollar means stronger export.
When demand for US goods pick up, the jobs will come.
The weaker US dollar may push the manufacturing plants to return to US. That is provided the government is smart enough to lower corporate tax rate and individual tax rate.
Due to all these factors, I do not plan to sell my silver bars unless I am really desperate for money.
It is hard to imagine that a block of ugly metal can cost so much money.
Well, that is life.
Even though we cannot eat silver, or need silver for survival, the value of it is more than the value of rice, and other stables.
Are you selling silver bars now? If yes, you may like to hold on for a while.
If and when silver hits $50, the price will go up even more.
If you have excess cash, and want to hedge against the declining currency, you can buy silver bars.
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Silver has been a good investment. It will definitely have a long way to go.
ReplyDeletesell silver