So dispite the pounding that gold and silver have taken since the beginning of the year, I view this pullback as temporary. Some people are predicting much higher prices, but I don’t know if we will see skyrocketing prices. However, I will explain why gold and silver should be in everyones portfolio.
Imagine investing in something that is consumed, and you know that it is finite in availability. Well gold and silver fit that category. Stocks are just paper, they are created on a whim. Even if you just hold cash, cash is created easily. Even mining stocks, they are still stocks, and can be created. Silver is used in electroics, and other consumer items like solar panels. Since it is in consumer products, a lot of it ends up in a landfill. Even China wants to expand its production of solar panels, and silver is used by the solar panels. Trump wants to expand the military, and a lot of silver is needed.
The earths crust only has ten years worth of gold, and it has even less of silver left. What will happen to prices after there is none left? Sky is the limit. With the price being manipulated down, (Deutsche Bank paid a fine for it), this is the perfect opportunity to buy gold and silver. Use the manipulation to your advantage.