Question by Jay Dub: What is your opinion of the commodities markets ??? Particularly Silver ???
I’ve been an active investor in the commodities markets for about a year now . . . specifically in silver. Just want to know other peoples opinions of precious metals.
Most detailed answer:
Answer by 4XTrader
More than likely, you’re going to get some moron tell you that precious metals are a “bad” investment. They base they’re argument on the fact that from 1980 to 2002, precious metals were in a brutal secular bear market. But what they fail to see is that from 1971 to 1980, silver sent from about $ 1.40/oz. to $ 50.00/oz – a 3,471% increase.
All assets have their bull and bear cycles. The precious metals have just ended a 22 year bear market and are only 4 years into a secular bull market.
These same people will say that “stock” is the place to be. Well, let’s see:
From 2000 to today, the Dow is up about 1940 points (from it’s top of 11,722), or 16.5%. From the low in 2002 of 7200 to today, it’s up 6,465 points or 89.8%. Not to shabby. But let’s take a look at silver. From 2000 to today, silver is up from $ 4.95 to around $ 13.11 today – up $ 8.16 or about 164.8%. From it’s 2002 bottom at around $ 4.25 to today at $ 13.11, it’s up $ 8.86, or about 208.5%.
So, here is the deal:
Dow – up 16.5% in the last 7 years, up 89.8% from 2002 low.
Silver – up 164.8% in last 7 years, up 208.5% from 2002 low.
So, where do these people get that equities are the place to be? Yes, from 1982 to 2000, equities were the place to be and not precious metals, but now the tide is turning and the precious metals complex is whipping the pants off stocks.
I can speak for the entire commodities complex, but we have crude oil up, gasoline up, natural gas up, corn up. You’d need to examine each commodity individually to see, but I suspect that the commodities markets are fairing much better than equities.
If you know better then please let us know below.