I would just like to say what I think about the silver manipulation, and people’s reaction to it. I hear all the time about everyone’s frustrations with silver being clobbered all the time, and yes I can fully understand it. I myself couldn't care less what the price of silver is on any particular day or week. Just step back and look at the larger picture of the situation and ask yourself a couple of questions. Why did you buy in the first place? What is your long term strategy? If you are not going to sell your metal, does it really matter what price it is?
I will try to answer these questions the best I can, remembering that I don't claim to be an expert; these are just my opinions and how I see it after studying these markets for over 20 years.
Why did I buy silver?
The reason for me buying silver is because I’m not a young man anymore, so the older I get the more I have to think about me and my partner’s future. So if you went back 25 years in time and said I need to secure my future for my old age and bought say 5000 ounces of silver with your savings. That purchase would have set you back about $25,000 in Australian dollars. That silver today is worth $113,000, that’s a 4.5 fold increase in a massively manipulated market. If it was actually trading in a free market it would be at least $250,000 or a 10 fold increase. What did I have to do for this increase in wealth, NOTHING, so am I worried, not at all!
What is your long term strategy?
My long term strategy is, sometime in the future I know this manipulation will end, as they always do and the value of my silver, priced in paper terms will skyrocket to I don’t know what. Will I sell it all? No of course not, I will sell what I have to, and buy what’s needed, so we can be comfortable in our old age.
If you are not going to sell your metal, does it really matter what price it is?
If you have no need for the money locked in your silver, then to me it doesn’t matter if silver is $1 an ounce. The only time I would stress over the silver price is if I have some type of financial trouble and need to liquidate my position.
So I hope this blog can put some people’s minds at rest, just sit back and let nature take its course.
