Thursday, August 16, 2018

2nd. Best Investment Recommendation in 40 years. Only $15.00

The following is my second strongest investment recommendation issued in my 45 years of investing.
Lawrence speaking at a investment seminar in Bali earlier this year
My best sell signal was recommending people to buy beachfront property in Bali at $1000 per hundred square meter in 2002 .
Right now it is $20,000-$50,000 per hundred square metres or 2,000% to 5,000% increase.
Bali Paradise Beach Estates

"2000 to 5000% increase.

I am so sure about this one that I even recommended it today to my close relatives to get involved even though I don't even sell the investment and have nothing to benefit.

Therefore I put my reputation on the line.

Why am I so Bullish On Silver?

Silver has almost dropped to the lowest price is 2015. The last time it was at this price it rallied significantly and it happened to be in the summer.

Buy "when the blood is running the streets". I hesitate to use saying made famous by Baron Rothschild at a time when there it literally  blood running in the streets of our neighbour Island Lombok after a devastating seven point earthquake, but life goes on.

We made our charitable contributions to the survivors and we must now focus on our future.

"Buy when the blood is running the streets"

Right now with silver in the $14.50 to $13.50 per once price range it is a no lose proposition with nothing but upside potential and very little risk. 

In fact there is no risk at all providing you hold it into the future. Silver always increases over time, just like gold.

Why am I extremely bullish on silver over Gold is that it's selling close to the cost of production.  I mean the cost of producing. shipping, and distributing it before it gets to the retail level.

At this price level there is very little chance of dropping below $13.50.

I don't have time to show you all of the demands from silver but I do know that as soon as the supply of silver comes out of the ground it goes directly into the market. There is very little above ground supply of silver.

Therefore if any shortages occur because of a mine shutting down because of low prices you have the opportunity for great investment opportunity.


I also know that there's many industrial uses for silver such as silver solder in electronics

Every mobile phone, every computer, every electronic instrument you use needs silver.

So we cannot expect that demand not to drop. 

It is also heavily used in solar cells for generating electricity and that demand is increasing exponentially. 

Finally there is demand for silver jewelry with India estimated to import one third of the world's silver supply. India's economy is booming therefore the silver demand should increase.


Today Silver hit a price of $14.30 an ounce.  We are very close to the 2015 low. The last time we hit this price it soared.

My sincere belief is if you buy in this price range and don't get scared out if it drops a little bit further you will see profits of 10% to 20% in the next 6 to 12 months.

If you leverage you could be seeing 30% to 70% profits. 

If you hold long term I believe you will see silver double or triple in price.

Remember I have nothing to benefit from you buying unless you buy a huge amount, which I doubt.

The beauty is you can buy an ounce of silver as little for around $15. So anyone can invest.

South Africa has just issued the new South African Silver Krugerand.

 I'm not sure about about the selling price but if it's as popular as the South African gold Krugerand it should be a real winner. 

If I was living in North America I would buy a bunch and store in a safe.

Here are a few recent articles that support my recommendation.

Here's What's Next for the Price of Silver in 2018

The price of silver didn't move much early last week, but the events in Turkey have since pushed the metal even lower.
For its part, the U.S. dollar index (DXY) consolidated as well, but then it rallied before exploding higher late in the week.
Serious pressure on the Turkish lira, which bled into emerging markets, acted like steroids on the dollar. Initially, silver prices sold off but quickly reversed as silver benefited from safe-haven buying, as did the dollar.
But as investors increasingly sold stocks everywhere, especially emerging markets, they favored the U.S. dollar and treasuries.
That pulled the price of silver to lows not seen since early 2016, aggravating an already tired and extended silver bear market.
silver coins
Silver bulls pinned their hopes on gold, which seemed to return to safe-haven status even as the DXY surged higher. But that too has since faded with gold, making a new low near $1,200.
Here's a look at how silver prices are trending now – and whether we've finally reached a bottom for the precious metal…

Here's Why the Price of Silver Keeps Dropping

Like I said, silver saw little action early last week as both the dollar and gold moved within a pretty steady range. Silver's lower limit was $15.30, touched early Wednesday, and its upper limit was $15.49 on Thursday morning.
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Then as Friday morning rolled around and investors around the world began reacting to news that European banks were concerned about their exposure to Turkey, the silver price initially dropped from $15.42 on Thursday's close to $15.32. But buyers then stepped in to acquire silver as gold and the dollar also rose. That bid silver up to a peak of $15.42 before it retreated once again.
Here's a look at the DXY for the past five trading days:US Dollar at 96.26

Friday's close would see silver dragged down to $15.23 as participants sold before the weekend.
And on Monday, as stocks eventually sold off on further emerging market contagion concerns, the DXY consolidated around 96.4. That hurt silver even more, pushing the metal below $15 to $14.95 by late afternoon.
Now that silver is trading below $15, here's where I think the precious metal is headed next…

What's Next for the Price of Silver in 2018

If we're looking for an explanation as to why silver has sold off, the chart above showing the rally in the U.S. dollar is it.
Although silver and gold initially jumped along with the dollar, they finally sold off as participants showed their preference for the greenback and treasuries.
USD CHART

What's worth noting now is, thanks to the massive jump in the DXY, it's nearly in overbought territory with its relative strength index (RSI) indicator near 70.
While an overbought condition can last a while, as shown by the RSI through most of May, it's going to revert to the mean, and that could be beneficial to silver.
Silver has now dipped below its July 2017 low of $15.40.
Silver chart

And we have to go back all the way to April 2016 in order to match current levels around $14.98.
silver chart

If silver drops further, then the next support would come in around $14.50, then $13.50.
Given its terrible recent price action, that seems all the more within the realm of possibility.
But if the metal can bottom soon and then rally, my first target would be $15.50, then $16. Remember that this sell-off has been more intense than last year's summer blues. And those led to a rapid 16% gain in just over two months.
Meanwhile, the gold-to-silver ratio has also popped higher.
gold-sliver chart

That too suggests silver has gotten cheaper relative to gold and could benefit from a correction in the ratio, with silver playing catch-up.
So for now, it's likely best to sit tight and wait a bit for silver to find its footing and bottom out. That said, silver will rally. When the uptrend returns, it could be explosive.


India Soaks Up Physical Silver Supply

Craig Hemke
 | 
Tuesday, July 17th
India Soaks Up Physical Silver Supply - Craig Hemke (17/07/2018)
 
Rather than another discussion of charts and COMEX price projections, this week we thought we should point out a physical fundamental that has gone seemingly unnoticed in 2018.
Before we begin, let's be sure to give credit to Louis Cammarosano at Smaulgld. Louis diligently monitors global metal demand, and he brought this Indian demand issue to our attention last week. You can read his post here: https://smaulgld.com/india-silver-imports-april-20...
Let's cut to the chase. While the price of COMEX Digital Silver is being pounded lower in 2018, demand for actual physical silver in India is soaring. On Louis' chart below, note that the all-time peak in Indian silver demand came in 2015... when the price of COMEX Digital Silver bottomed below $14 and then began a 50% rally to $21 by mid-2016. In fact, the month of April 2018 alone saw India import 902 metric tonnes, the highest one-month total since December of 2015.
And it's important to understand the chart above in context. The 2,889 metric tonnes imported in 2018 is only through April. That's just 1/3 of the year, so to determine an annual run rate we need to multiply that 2,889 number by three. Thus, if current Indian demand continues at this pace for the rest of the year, total Indian demand will reach 8,667 metric tonnes for 2018, exceeding the previous high of 8,529 metric tonnes in 2015.
But let's not stop there. How much silver is 8,667 metric tonnes? Is that a lot or a little? Well, consider this article from December of last year. The author cites a report from a group called Metals Focus, which projects total global silver mine supply in 2018 to be 867,000,000 ounces. A similar study from Jeffrey Christian's CPM Group pegs global supply in 2018 at just 817,000,000 ounces. (http://www.kitco.com/news/2017-12-22/Global-Silver-Mine-Supply-Expected-...) Let's spilt the difference and call it 840,000,000 ounces.
Now back to India... How many ounces is 8,667 metric tonnes? About 280,000,000. So let's do some math. The entire world is going to produce 840,000,000 ounces of silver, yet India alone is on pace to import 280,000,000 ounces. Divide Indian demand into the total mine supply number and you find that India is on pace to import one third of all the silver mined globally in 2018.
Now you might expect that any one country sopping up fully one third of the global supply of anything would have a positive impact on price. But not in the bizarro world of COMEX digital derivative pricing! In 2018, it's not physical supply and demand that determines price. Instead, it's the supply and demand of the COMEX digital derivative that determines the physical price.
While the world only produces 840,000,000 ounces of silver, the COMEX in New York regularly maintains a total open interest of more than 200,000 silver contracts. At 5,000 ounces per contract, that's 1,000,000,000 ounces of digital silver. And with an average daily trading volume in excess of 100,000 contracts (http://www.kitco.com/news/2018-04-03/CME-Group-Lists-Record-Metals-Tradi...), the COMEX trades over 500,000,000 ounces of digital silver every day! As you can see, it's not the trading of physical metal that determines price. Instead, it's the trading of the digital derivative.
Putting this all together leads us to the crux of the matter. Led by India, the world is on pace to consume all of the silver produced in 2018, yet the dollar price of silver is now down over 10% year-to-date. That's a dichotomy that must soon rectify itself. Either physical silver demand will crash before year-end OR the paper price will be forced to respond as it did in 2016.
Thus, watch these global physical demand numbers closely in the months to come. If Indian and global physical silver demand continue to surge, the digital derivative pricing system must respond with higher prices or it will risk collapse and failure.


 
Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.You may copy, link to or quote from the above for your use only, provided that proper attribution to the author and source is given and you do not modify the content. Click Here to read our Article Syndication Policy.

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