Silver and Gold Repricing

Here is an excerpt from my Q1 Returns Report 2024 (Green meaning I’m in favor of buying)

Silver: Trading around $25 USD per ounce.

Gold: Trading around $2300 USD per ounce.

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Silver

Today Silver is at $70 USD

Gold

Today Silver is at $4,457 USD

Rationale

I moved 2.5% of my net worth into Silver and Gold Bullion and a similar sized chunk into Gold and Silver Stocks. I first started buying silver in 2013.

It started with diversification as a goal, but truthfully with time became more of a shit-hit-the-fan hedge. Shit hit the fan both in the context of NATO vs Russia and also the end of the long term debt cycle.

Shit hit the fan meaning that I can carry value on my self without needing permission from the bank or government to take it out of the bank.

The Coles notes of the end of the long term debt cycle is when debt and money creation become so excessive that central banks can no longer stimulate growth, forcing deleveraging through defaults, restructuring, wealth transfers, currency debasement and capital controls. Beware that this is all symptomatic of the evil Fiat system that we live in. Fiat is the root cause of war and death, enslavement and the never ending trod towards lower and lower quality of food and living conditions.

Guide In Stocks

I’ll only broadcast things I believe to be truths or good guides. I don’t get paid by these entities and have no affiliation.

From wider investment listening and absorption my guiding star on who/what was worth its weight was this gentlemen - Rick Rule. Rick has been in the Commodities space for multiple lifetimes and is someone I would consider an expert on sectors and individual stocks for metal commodities.

For this current period - Rick has sold off his speculative Junior stocks and consolidated more into the quality, established names (he is also adding Oil).

Now I’m personally not a believer in picking individual stocks - I prefer indices or sector plays. I did buy many individual stocks but more in the sense of building a mini-index.

Again - I’m not one for talking about individual stocks (unless they are doing something revolutionary or unique such a MSTR).

So if you are looking for ideas - I suggest you keep abreast of his thoughts via YouTube.

The stocks that I have that broke through 100% gain - I will sell the original investment so that the returns thereafter are infinite. (The math is any gain divided by the cost (of 0) is infinite). Sales proceeds are invested into a new candidate (likely orthogonal to my original investment).

If the asset I believe very strongly in - I will not sell in a lifetime no matter how much it has gone up.

Where We Are At

Gun to my head - is there much more of an upside? I assume yes.

From what I can tell, generally speaking Retail (regular people) hasn’t caught onto the Gold and Silver that Central Banks have been buying for the last few years. Also the paper market and physical market are disconnected beyond reality. Arbitrage plays are starting to kick in between China and Western systems.

We have not yet seen the unwinding of paper to physical. I’m not sure that we will but if we did the price would jump up extraordinarily.

In 2008, I remember listening to an interview with a guy who worked for the UK Bullion Markets blowing the whistle about the amount of paper to silver was greater than a 100/1 ratio. It’s still the case now!

If deliveries were demanded the price of Silver and Gold would go through the roof.

We also have just entered Not Quantative Easing MK: II. Which may be the fifth/sixth/seventh? round of gigantic money printing. Meaning that any hard assets will inflate in price regardless of whether anything substantial changes in how the metal markets work. (This is why we see the stock market rise so much even though a lot of it is mal-investment in my opinion).

So do I think prices will double from here - yes at some point. My gut feel is that we are roughly 30-50% through this change (from a time perspective).

Am I investing more? I don’t invest new cash anymore and haven’t for quite some time (maybe 2 years). I move my investments around based off cycles.