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Saturday, January 8, 2011

"Governments across the globe are spending with abandon and creating big risks for savers and investors. That’s why it’s a good idea to keep a portion of your assets in “chaos hedges” like gold and silver."

The Silver Rush Is On
By Dr. David Eifrig

Demand for silver coins is taking off. It’s up almost sevenfold from the mid-1990s. The public is catching on to the value of silver, and I expect this trend to continue for years.
Since my first essay, the price of silver has soared more than 100% – from $13.50 to about $29 today. But over the long term, there’s much more to come.
Here’s how I explained it in 2009:
Governments around the world are behaving absolutely stupidly right now. Our vice president just said with a straight face that the government has to spend more money in order to save the nation from bankruptcy. That’s crazy… but it passes for conventional wisdom these days.
In my 30 years of investing, I’ve never seen so many risks in the financial system. That kind of “patriarchal thinking” is producing those risks.
The stupid thinking I saw in 2009 hasn’t gone anywhere. Governments across the globe are spending with abandon and creating big risks for savers and investors.
That’s why it’s a good idea to keep a portion of your assets in “chaos hedges” like gold and silver. You should know, I’m not the kind of guy who lives in a concrete bunker. I don’t think the world is about to end. I’m not anyone’s idea of a “gold bug.” I buy this stuff just like I buy car insurance.
You should think of gold and silver as insurance against calamity. You should think of it as a safe store of wealth.
As I’ve just showed you, many people are catching onto this line of thinking. I expect millions more will over the next few years…


Read more:
http://www.dailywealth.com/1597/The-Silver-Rush-Is-On

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