Sell Stocks, Buy Silver!
Will Rogers offered this advice for making money. “Take all your savings,” he said, “and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”
Rogers was a humorist and could get away with giving that kind of advice. We, on the other hand, take your money and wealth (and our own!) more seriously. And we have never seen better advice than this:
“Buy low, and sell high.”
Not many people do that of course. Too often they do the exact opposite. They buy high and sell low.
If you would like to buy low and sell high, we can’t think of better advice than to sell stocks now. And buy silver.
That’s because silver is low. And stock are really, really high.
The all-time high of Dow Jones Industrial Average was 27,359 points. That was last July.
As you can see, the Dow keeps bumping up against resistance in the neighborhood of 27,000, and can’t break through. That stands to reason, since there is ample evidence that a slowdown is on the horizon. September was the worst month for US manufacturing since the Great Recession; global growth has slowed; political turmoil worsens by the day, and the trade war is spreading.
Please make sure you see the report we featured recently here that corporate insiders are selling their company stock at a furious rate, on pace for a record not seen since the dot com bubble. It reads in part, “Executives across the United States are shedding stock in their own companies at the fastest pace in two decades, amid concerns that the long bull market in equities is reaching its final stages.”
Think about this a moment: Instead of paying dividends to their shareholder, they are using company earnings to buy back their stock and thus run the share price up, so they can exercise options and sell their own stock at higher prices. What it should tell you is that corporate managers engaged in such practices have very short time horizons for their companies. And they have their own best interests at heart. Not yours.
So, if the stock market is high, you know what to sell.
But what is low? What should you be buying? Something that is not subject to corporate mismanagement and can’t be printed into worthlessness.
What is low right now that has proven itself as both a monetary and an industrial commodity? Is there anything that stands up to government debt and bankruptcy? Prized for wealth preservation and financial privacy?
The answer is silver. It meets all those important qualifications. And silver is just over a third its price of 40 years ago. Think about that a moment. How many other investments are less than a third the price they were almost 40 years ago?
Forgive us for repeating the point we made not so long ago. “Today, everywhere you look, things are higher. In 1980 the median price of a US home was only $47,200. Today it is $226,800.
“Oil stopped out a $40 a barrel back in 1980. Today it is $53.
“At the beginning of 1980 the Dow Jones Industrial Average was 824. Today it is around its all-time high of 26,500.
“Everything is higher today. Everything except silver.”
Call or visit an RME professional today.
By the way, Will Rogers also said, “Remember, write to your Congressman. Even if he can’t read, write to him.”