SD reader Dave writes:
I invested $20,000 in gold and $60,000 in silver bullion five years ago. I was lead to believe they were going way up due to money printing and zero interest rates. So far I am down nearly 100%.
All the fundamentals are right for higher prices but both metals have gone way down.
Can these prices go up without a complete collapse of the dollar? I figure I only have about 10 years left to live. Will I ever get even?
Dave, All major secular bull markets have major corrections. As to the bad marking timing of purchasing $80,000 in gold and silver 5 years ago, I believe that ultimately the bull market will forgive bad timing- provided you have the intestinal fortitude to be right and sit tight.
The fundamentals that propelled gold from $270 to $1915 and silver from under $4/oz to $49.30 have not changed- if anything they have only continued to intensify. Only those with the intestinal fortitude and conviction to be right and sit tight throughout the duration of the secular bull market in gold and silver will reap the full benefits. Being right is the easy part, its the sitting tight that’s difficult.
The 3 previous major corrections in the current bull market all lasted in the general time frame of 2 years.
The latest (and I believe final) lasted nearly 5 years- and shook some of the most resolute gold and silver bulls out of the proverbial tree.
I believe the massive take-down in gold and silver over the past 2 years particularly is a last ditch attempt by the cartel to save the dollar and the financial system by preventing the public from recognizing gold and silver as safe havens as the fiat world burns to the ground.
The dollar is still perceived as a safe haven, but in reality, it no longer is. Gold and silver are the last remaining safe havens, and they will be widely viewed as such before the current bull market is completed.
I personally believe that those who can endure the pain and sit tight (and even add to their positions into the numerous corrections) will be highly rewarded and will survive the coming financial destruction as the global derivative debt bubble collapses.
All the best!