Fortune 500 stocks? No! Silver investing, Gold investing

Financial investor, who likes gold and silver, distrusts dollar.

I have become a fan of investing in gold and investing in silver, not just bullion, but mining stocks and ETF’s funds that hold gold and silver. I have to preface this by saying that two years ago I knew almost nothing about the stock market. Then what little money I had was wiped out in an IRA. A friend who is wealthy taught me about the market and more importantly how he was making money in gold and silver. I thought he was nuts. Investing in gold and investing in silver seemed stupid. I had heard that “gold bugs” who held gold in high regard vs. the American dollar were also members of The John Birch Society, had an arsenal of ammunition for the day the government would be overthrown and strongly believed in a New World Order (made up of political and business leaders) who met secretly to plot the course of the world. Paranoid! At the time I wondered if my friend was crazy. But my friend showed me he had made his fortune investing in gold and silver and he was willing to show me the fundamentals.

 Those fundamentals included economic and political concepts as well as tips on investing in gold and silver. He introduced me to the writings and backgrounds of David Morgan of Silver-Investor, Robert Quartermain, a big player in the owner of silver mining and Richard Maybury of Early Morning Report who writes on the broader political and economic forces at work. Fast forward to today. I listen to CNBC all day, not because I believe their on-staff commentators but because I want to know the course of gold and silver prices and occasionally to hear a guest speak the truth. “If we recover, and I mean if, normal for the economy won’t look anything like it does today.” Or “As the dollar falls and oil and gold rise, look for countries other than the U.S to mount a drive to replace the dollar as the globe’s reserve currency.”

David Morgan   Silver-Investor.com
David Morgan Silver-Investor.com

I am not going to try to give you an entire background on how I came to invest in gold and silver mining. My caveat is that I am not the usual “contrarian” who is perhaps best represented by Republican Congressman Ron Paul. I had always thought of myself as a liberal, very willing to spend money on social problems to help not only those who couldn’t help themselves, but also to help average Americans in hard times. I am still altruistic enough to want to do that but it leaves me dichotomized. Yes, I want all those social programs, but in the meantime we are drowning in the kind of debt that means as the government debt grows and the Fed spends more money our entire economy is tanking.

So my number one reason for investing in gold and silver is because I think the dollar may be doomed and the dollars we have saved or want to spend are almost worthless. Contrarians point to this axiom. “No currency has lasted the value of which is the paper on which it is printed. In other words, a currency cannot last that is not based on gold or silver.” They point that we are not alone in having a shaky currency in these recessionary times; others countries are in the same if not worse shape.

All of that points to a replacement of world currency with gold or silver, but no, not anytime soon. This scenario takes a long time to play out. But in terms of investing, how much better to buy gold and silver (very expensive) and gold and silver mining stocks. Of course, part of this reasoning is that the usual big stocks have shrunk in value to almost nothing. They go up on the stock market based solely on the optimistic view that a recovery is around the corner and those stocks will once again regain their value. Not! General Motors is just one example.

The U.S. government is flooding the economy with cash to support floundering Wall Street firms. Other key countries with their own shaking economies are following suit, leaving our global economy drowning in paper currencies.


As paper money continues to be created, the value of each dollar, euro, pound or Yuan actually declines. So to buy a set amount of “stuff,” it takes more inflated dollars Doesn’t it make sense then to own the “stuff” with a fixed value rather than worthless paper? Enter precious metals, the way to own stuff that actually has value. Most people assume gold may be the best metal investment but silver has unique characteristics that make it as good if not better an investment. Silver is in short supply in our world. Gold has been and is being stored but silver has use in energy, technology and jewelry manufacturing. Remember, we have billions of people worldwide already entering the middle class and billions of others poised to do so. The industries that have to have these metals will pay top dollar for silver. Enter the mining stocks that haul up from the ground gold, silver as well as other precious metals collected during the mining process. OK. you are not convinced! You are still betting the Bank of America share will soar and that the usual Fortune 500 companies will once again be the basis of your retirement if not your fortune. Don’t believe me. I didn’t believe my friend. I went out and researched these stocks for myself as well as the basic economic fundamentals that leave me loving Barrack Obama but placing my bets on his being the ill fated captain who took over the Titanic after it had hit the iceberg. I would suggest you subscribe to newsletters on the Internet that discuss gold and silver. A favorite of mine is David Morgan’s Silver-Investor. He has a free newsletter along with a paid subscription that goes in-depth on particular trends and mines. If you never get a paid subscription, there is an entire education on precious metals on the Silver-Investor web site. So tell me I’m crazy! My stocks are doing very well…I’m just saying!

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Comments 11 comments

emievil profile image

emievil 7 years ago from Philippines

Hi. I love your hub. I wish I can invest in gold and silver even if I am in the Philippines. I think this is the reason why my aunts are hoarding gold jewelries because they always believe in the (increasing) value of gold.


Svea profile image

Svea 7 years ago from Florida Author

I don't have a lot of money so buying the gold and silver is out of the question except for a few pieces that I had in the family. I invest in gold and silver mining and many of those stocks which I review on the newsletter are called penny stocks because they literally sell for pennies although some bigger ones are more expensive per share. I take money I would otherwise waste and put it in the mining stocks, China stocks and gold and silver ETF's also explained in the newsletter. In these times you can't afford not to be educated even if you have very little money.


Svea profile image

Svea 7 years ago from Florida Author

Don't you like it when your instincts are right? Silver and gold may go up and down in value day by day )including mining stocks, bullion and ETF's) but overall when mainstream analysts and economists start extolling the virtues of the precious metals I feel not only vindicated but smart. These same analysts who scoff at gold and silver investors on CNBC as "gold bugs" are going to be eating their words. (Gold and silver are not easily digestible!)


Steve Nichols 6 years ago

In this bleak economy is it any wonder why there's a push to invest in gold? Investors are seeking a commodity that will keep its value. It helps ease the pain of watching the falling value of the US dollar.


majpaul profile image

majpaul 6 years ago from SYDNEY

I have invested in Gold,Silver and Palladium,but I could not make any fortune yet!!!


htodd profile image

htodd 5 years ago from United States

This is really great post..Thanks


htodd profile image

htodd 5 years ago from United States

This is really great post..Thanks


Heena 4 years ago

I used to think that investing in dollar is the best thing for me but after seeing today's market condition i repent of not buying gold and silver the time i could afford it. Now i cant afford to buy gold and silver because of their increased prices.

Heena - http://www.miningstockalerts.com/


Svea profile image

Svea 4 years ago from Florida Author

Maybe not too late...look at mining stocks..Do your homework and then decide if the price of gold and silver may not be going higher


Svea profile image

Svea 4 years ago from Florida Author

Not much is happening right now but nothing is really happening on Wall Street. Just wait and see after the election. Now is a good time to buy


Svea profile image

Svea 4 years ago from Florida Author

Not much is happening now and nothing will until after the election. Look for good deals now in gold and silver mining stock. Check where the price is now and compare it to its lows and highs. Then you might find some that are selling at a good price and buy. You need to track the ups and downs of any stock to know a good time to buy. I use all the info on Ameritrade.

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