Here’s Why I’m Bullish On Silver (And Always Have Been)
In 1965, I began going to the local banks in Hilo, Hawaii, turning in dollar bills in exchange for rolls of dimes, quarters, and half-dollars. I would go home, unwrap the rolls of coins, pull out the real silver coins, and return the silver coins with the copper tinge on the edges to the bank.
It was not long before I had a large cloth bag ﬁlled with real silver coins.
I do not know why I began exchanging dollars for rolls of coins and then saving the real silver coins as a habit. But I did.
In 1965, I left for school in New York and never saw my bag of real silver coins again. I’ve always wondered if my mom spent that money, those real silver coins.
My Quest for Silver
Then, between 1996 and 2012, I had a partner, a real teacher, named Frank Crerie. Frank was about the same age as my rich dad and my poor dad. Frank had taken a number of gold and silver mines public through IPOs (initial public oﬀerings) on the Canadian and U.S. stock exchanges.
Too old to travel, Frank sent me throughout the world looking for gold and silver mines. It was an incredible and very real education. I remember looking at the side of a hill in the Peruvian Andes, looking at a line of holes, small gold mines, and following a gold vein in that hill. My mining geologist told me those tiny holes produced gold for the Incas, long before Francisco Pizarro arrived from Spain, killing their leaders and then stealing their gold.
I also remember traveling to Mongolia to visit another old gold mine we called “The Checker Board.” It was called that because the mine was on ﬂat ground and looked like a checkerboard due to the holes.
One of our best mines was an old silver mine in a remote part of southern Argentina. Our group took that mine public on the Toronto Stock Exchange when silver was less than $3 an ounce. We did very well once silver broke $7 per ounce. Today, silver bounces at around $15 an ounce. Unfortunately, we sold at $7.
Silver is a Hedge
I do not own gold and silver to make money. They are insurance, a hedge against the stupidity of the elites… and myself.
I have insurance on my car, just in case someone hits me, or in case I hit someone else. Gold and silver serve a similar purpose.
All investments have risks. Real gold and silver have no risk. The price of gold and silver will go up and down—because the value of our fake money is going up and down.
When a person invests, let’s say in a stock or real estate, they expect an ROI, a return on investment because they are taking a risk. When a person saves money in a bank, they expect a rate of return in the form of interest, because saving money in banks is extremely risky, especially when elites are printing money.
When I purchase a gold or silver coin, I do not expect an ROI, a return on investment, because I am not taking a risk. Gold and silver are God’s money. Always remember, the price of gold or silver will go up or down because the value of our fake money is going up or down. Gold and silver are just gold and silver. Gold and silver will be here long after you, I, the elites, and the cockroaches are gone.
When I purchase real gold or silver, I purchase them forever. I never plan on selling. Just as Warren Buﬀett holds stocks forever, I will purchase gold and silver forever.
What You Should Know About Silver
I’m excited about silver because as I write, it’s relatively inexpensive. I’m also excited about silver because—unlike real estate, which can require a lot of money, some finance skills, lots of due diligence and property management skills to do well—silver is affordable to the masses, and management skills are minimal. Just buy some silver, put it in a safety deposit box at a bank, and your management nightmares are over.
Today, for less than $20, anyone can get into the silver. On top of that, silver is easy to buy and somewhat liquid. All you have to do is find your neighborhood coin dealer and start trading.
My question is: Do you understand silver? Do you know why silver is a good investment? Do you also know why it’s a bad investment?
If you don’t know the answers to these questions, I would recommend that you stick with what you understand.
Although I’m not a silver expert, I’ll share with you the reasons why I’m bullish on the asset:
- Silver is a consumable precious metal. Unlike gold, which is hoarded, silver is used industrially. For years, before digital photography, it was used in the film for cameras and movies. Today, silver is used extensively in electronics. The reason this is a good fundamental reason to get into the metal today is that silver stockpiles are dwindling, so its price is driven by supply and demand.
- It’s a precious metal. Silver has been used as real money for centuries. We, humans, have an ancient fascination with this metal, as we do with gold. As I mentioned earlier, I have visited gold and silver mining sites all over the world. That’s something that has always amazed me, regardless of whether I was in China, South America, Mexico, Africa, or Canada. I still remember standing on a mountaintop in Peru, doing my due diligence on a gold mine, and looking at tiny caves dug into the side of a mountain. The caves were the mines of ancient Incas who were seeking gold, long before the Spaniards came and stole their wealth and country from them. Standing on a 14,000-foot mountain, where I could hardly breathe, I wondered what motivated those ancients to live in such an arid and hostile environment and delve for gold. Then I realized I was there for the same reason, only centuries later.
- The primary reason I’m in real estate, oil, gold, and silver is that the U.S. dollar has become the peso the world. It’s becoming more and more worthless as the U.S. is the world’s biggest debtor nation.
So that’s a simple explanation of what I understand about silver—and why I’m bullish. I’m not buying silver because the price is going up, I’m buying it because I believe I understand why its price is rising.
I could also be wrong—but at under $20 an ounce, silver is a good buy, in my opinion. I believe it’s the last great affordable investment for the masses. And when the masses find out, another bubble will inflate and, of course, at some point burst.
Editor, Rich Dad Poor Dad Daily