Should You Invest in Silver Now? Rich Dad Thinks So!
Commodities / Gold & Silver 2009 Jan 23, 2009 - 01:02 PM GMT
What most investors hear time and time again is that "timing is everything." This is an important factor for any investor and especially those who aspire to become truly financially independent. And, no one knows how to time the market like Robert Kiyosaki – author of Rich Dad, Poor Dad.
Kiyosaki knows that there is a time to sow and a time to reap. He has reaped fortunes that helped him retire at the early age of 47. And, he sowed when real estate was not the preferred investment class and he cautioned real estate investors against risky strategies such as "flipping," and relying solely on the appreciation of properties with low or no "cash flow."
So, what does this famous investor like now?
He is looking at the commodity markets, specifically the precious metals: gold and silver. Yet gold and silver are investments that are still out of favor with most of the investing public.
Why You Should Be Investing in Silver Just Like Robert Kiyosaki
1. For the average investor, silver can be an effective means of diversifying investment assets and preserving wealth against the ravages of inflation. Although the value of silver may vary, it has an intrinsic value that is immutable and permanent. Accordingly, many experts suggest that investors should include it among their investment assets.
2. The commodity markets, specifically the silver market, have outperformed both the stock and bond markets recently and, I believe, will continue to do so. Since 2000 if you would have invested your currency into gold you would have seen a 190% return on your money. If you would have invested your money into silver you would have seen a 240% return on your money. This is an important shift to recognize, yet very few individual investors are aware that this fundamental change in the marketplace has taken.
3. One of the most incredible truths about silver is that up until now, demand has outstripped supply for fifteen straight years. Annual silver supply deficits have run as high as 200 million ounces in boom years, and as low as 70 million ounces in years of recession like we are in now. It is important to realize that even in years of decreased silver demand the mining supply on an annual basis did NOT meet demand. There is nothing more bullish for a commodity than such a deficit condition.
4. There is actually less silver bullion available for investment than gold! This one fact alone should alert any intelligent investor into thinking that some silver must be held as part of one's precious metals allocation.
5. When people have tangible evidence that something has gone badly wrong with the economy, they begin to hedge against it. They hoard real assets. Rich people hoard gold and silver. Here's why: When things go wrong economically – when there's a crisis like we have today – the price of silver goes bananas.
6. The U.S. government is bailing out every business that they deem too big to fail. Giving these Wall Street companies billions of our taxpaying dollars that has to be printed out of thin air because we are bankrupt will lead to inflation and a lot of it. Gold and Silver are a hedge against inflation, which is why they have been rising since the turn of the century and they will continue to rise.
7. The United States is 10 trillion dollars in debt and with unfunded liabilities such as Social Security and Medicare the total U.S. debt is actually 52 trillion dollars. This debt will eventually lead to the dollar weakening and collapsing again while silver will skyrocket to the moon.
So follow Kiyosaki's advice and invest in precious metals, specifically silver, now. You will be able to build wealth, and retire securely without fear. You may even be able to retire early just like Kiyosaki.
By David Morgan,
Silver-Investor.com
Mr. Morgan has followed the silver market daily for more than 30 years. Much of his Web site, www.silver-investor.com , is devoted to education about the precious metals . David Morgan believes NOW is the time for baby boomers who want to retire comfortably and without fear to start investing in precious metals. Now you can discover his Ten Rules of Silver Investing for Baby Boomers, when you sign up for his free newsletter here .
Contact information: silverguru22@hotmail.com
Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.
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