After JP Morgan seriously manipulated paper silver and gold prices last Thursday I really don't trust anything they say. Is this another pump so they can dump. Technically nothing they did was illegal, although you could argue they used insider knowledge of when other traders would be margin called. And their timing for repurchase was absolute perfection, which is basically impossible unless you know something others don't.
But paper silver and gold, perhaps even the comex itself is a dead man walking. they change the rules to suit themselves. for example, Once the paper silver reserves of real silver go to zero (which will occur in just over 2 weeks) expect the rules to change again. Paper silver will no longer need to be backed by real silver reserves. Also you will no longer be able to request delivery of silver. Cause there is nothing left to deliver.
In my humble opinion, paper silver with no actual real silver reserves just becomes a meaningless piece of paper, with zero value. The same is true for paper gold, but to a way lesser extent. Gold is not as scarce, and it's a currency hedge. Silver, copper and other metals are scarce, demand seriously outstrips supply for the medium and long term. Plus it's and industrial commodity That is used daily. Gold is used too, but it is primarily just stored.
So I'm buying $Pan American Silver(PAAS)$ and $BHP Billiton(BHP)$ in a month or so, I'll share my success or failure on both with everyone that follows Me. After all talk is cheap, when not backed with execution.
I expect modest returns in a month, maybe 10%. In six months, I will be wanting to be 50% up on both stocks. Obviously I'm not suggesting you buy either. These stocks suit me personally. Plus I have spent a lot of time researching a lot of other stocks to narrow it down to these two.
I am suggesting that these two stocks are worth researching. Decide for yourself if they are a good fit for your portfolio.
Happy investing fellow tigers
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