intro

A place to bounce around ideas and information... in general just chit chat... Because we're all different, and yet, we are all the same, just like zebras.

Topics: Silver, Gold, Financial Markets, Commodity Markets, Politics, Global Geopolitical Eco-Finances, Globalists, New World Order, Freedom, Health, Agriculture & Crops, GMOs, etc...

Peace.

Tuesday, April 19, 2011

My Investment Strategy, Update

So where I stand now is heavy in PSLV and light in SLW and JJC. I went long those stocks in November-ish. JJC is flat. SLW is up about 10% which is good, but... PSLV i'm up over 30%. The fact of the matter is that Silver is outperforming everything right now, even in crazy violently up-and-down times.

So, my moves are this week or next, selling JJC and SLW, and going 100% long PSLV. Silver baby silver. "They" say it's good to have a diversified portfolio... Screw that! If silver is the investment of the decade I'll be 100% long in it, thank you very much. But buying is easy, at some point you have to sell (or do you?) to lock in profits.

Here's the plan I devised today. I no longer feel comfortable talking about precious metals in terms of the ever-dying federal reserve note. Ratio is the price gold/silver. When I started with silver and gold the ratio was around 50, and it is now around 40. Historically it is 15, but because of industrial demand issues and overshoot of trends adjustment, we may get down to a ratio of 10. So...

I decided that I will ease out of silver beginning when the ratio is 20. Mind you, I am talking the paper stock markets. When the ratio is 20, I am selling 20% of my paper silver. But... I am not holding cash, I will use it to buy PHYS, which is Sprott's physcially backed gold fund. When the ratio is 15, I'm taking another 20% off and when it is 10, I'm taking another 20% off of my silver. Again, all these conversions will be into paper gold. And/or debt servicing depending on how soon or long this takes.


Of course, if the government decides to be responsible, stop accepting the federal reserve printing more and more and more money, and if the gov starts paying down debt, well then... Then I will sell all my paper metal and hold USD. LOL. Don't see that happening anytime soon though.

Happy Investing =)

z

No comments:

Post a Comment