Interesting Silver Movement

Source : kitco.com

Above chart shows some interesting movement with respect to silver..

Though it did touch quite a low.

My prediction made 1.5 years about silver seem to be holding ground.

Surprised to see it touch a high of 20

Present scenario shows a steady climb. Would really like to have access to more data and charts and make some predictions. -)

Real Treasure Hunt

And I'm not talking fiction aka Lara Croft in this time of Global Economic Recession.

But it is a phenomenon in the West..Late Dr. P.K. Dutt was one of them.  

He taught me a few things...saying the principles of geology can be applied.  And it's adventurous.

Like searching for nuggets in "placer deposits"...this is one of the EASIEST WAYS of finding them.  The principle is very simple...

In a stream the heavier metals..and that includes gold nuggets...occur in the bends....the outer bend where the water current speed drops..and the gold nuggets or particles deposit.

But then people have to STUDY THE GEOLOGY, THE GEOGRAPHY, THE LOCAL CUSTOMS, THE APPROACH ROADS, LEARN HOW TO PAN & CONCENTRATE THE GOLD... where to camp...one has to research this stuff.

But then....

This was how a few people became rich..prospecting and finding gold even in Subarnarekha...

Of course, in our country there has not been any Gold Rush...

Market Sectors that Will Survive the Economic Downturn

We have to go back to the Basics..

MEDICAL & PHARMACEUTICAL STOCKS

Due to a high percentage of elderly people as also a large percentage of young people in medical doldrums in this fast-paced lifestyle

GOLD, SILVER & BULLION

Will beat the inflation rate and will give steady returns

SELECT BANKING STOCKS

By this I mean select. Nowadays one can get the necessary info from the Net. After all, everybody will put money in their banks transferring from the stock markets.

..And a few other sectors

Disclaimer : I keep changing my auto-forwarding list so often....sometimes in a hurry forget revising the names...hope this doesn't reach the wrong person....hope you go through ALL my blogs 'n' enjoy the new look

EASIEST WAY of making money from stocks ....SECTOR ANALYSIS

Easiest way of making money from Stock Markets is ANALYZING WHICH SECTOR WILL GROW:

EASIEST WAY is to invest in Sector-Wise Mutual Funds.
Funny thing is, sometimes, some Sectors have an Inverse Ratio vis a vis other Sectors.
But, let me do some few Single Sector , Zero Correlation Analysis.

Here are some case examples......

• Mutual Funds (Infrastructure) with Steel & Cement emphasis GREW prior to Beijing Olympics......
• BANKING SECTORS WILL ALMOST ALWAYS POST POSITIVE, if not spectacular growths. Which country wants it's banks to fail ??? Elementary. UNLESS, the Oil deficit sucks out too much money from the Reserves. Scary, but possible.
• Petro-Funds are for SHORT-TERM TRADING....I deal with Oil Oscillations in my Global Study blog.
• Information Technology (IT) is a buzzword. But, if I were to invest, well, I'd go into ITES (I.T. enabled services) before 2009 January. Dependent on who comes - Obama or John Mc Cain. My hunch is Mc Cain...but that's a diff'rent story. Though I saw media mogul Murdoch stating in an interview it will be Obama thru' narrow margin. Anyway, Republicans = Outsourcing O.K. = ITES - biased Funds skyrocketting.
• Pharmaceuticals in Developing Countries.....will move up due to globalization effects
• FMCG (Fast Moving Consumer Goods) will be reflected by overall economic trends. No spare money = no buying power to buy FMCG.
• INDEX FUNDS !!! IMHO, one can make a HUMONGOUS AMOUNT OF MONEY FROM JUST STUDYING "MASS PSYCHOLOGY" EFFECTS......this is EASY MONEY TO MAKE on a short-term basis.

So, IMHO, far greater DEMOCRACY / SCRAPPING OF ENTRY , EXIT -LOADS & CAPITAL GAINS is needed to BENEFIT both the ECONOMY & the INVESTORS....

So, this is one GET RICH EASILY WAY.......studying individual stocks of individual companies is too much time-consuming...one has to be a 100% committed investor and quit other stuff to MAKE REAL BIG MONEY.....

....Medium Investors CAN GET RICH EASILY BUYING & SELLING SECTOR FUNDS.

HOW TO AVOID LOAN TRAPS...a primer

A lot of people I know are now LOSING (to the banks, of course) a lot of their hard-earned money. This is thanks to the floating interest rate skyrocketing. And most of these folks took money for home loans and other loans in this consumerist world. A lot of them are rich...

But one guy,for example, a rich trader in my neighborhood, has lost all peace of mind & losing almost 40% of what he earns.
From what I gather from him, it's the other way, around :

The bankers are laughing all the way to (or shall I say, at) the banks

The more I read about Warren Buffet, world's richest man, and the most successful investor (though his 'guru' Benjamin was a theorist) + George Soros + Rakesh Jhunjhunwala & others...I'm convinced of this :

• A loan should only be taken at a fixed rate when the country's inflation rate is low, and hence lending rate is low. One should compare the present rate when taking loan to the historic rates upto 10 years back.
  
• If one takes a floating loan in a fluctuating economy, well, you get even get ready to pay 1.5 times to 2 times your asset value you are after...be it a home, or a fancy car, or whatever.
• Bankers & investors investing in Bank Sector Mutual Funds make money....professionals lose all the money to the banks.
• Never give in to Greed. Shanbhag, yet another legendary Indian investment advisor, always cautions against taking loans of high value...like for homes, or foreign education loans 'n' stuff.

I received a few calls after my last SMS 'es...2 of them very angry at me...it's a case of transferred anger at the economy....both of them have taken floating rate loans when the rate was low.

Floating rate interest, connected to the economy, a country's centralised Bank's health, Stock Markets (now Global, BTW), GDP, Forex Reserves, other reserves, investor psychology, commodity price import/export value(like crude oil) & so many factors.....is impossible to predict...at least by me.

Folks....hope you read my other blogs on global stock markets 'n' stuff to get the Macro economic idea. Macro > Midi > Micro > personal investment. That's how it goes.

Invest in Term Deposits for 5 years...lose money 1st year, make money for 4 years

Strange solution ? ?

Well, here's the reasoning why you'll GAIN if you go for Term Deposits FOR A LONG TENURE OF 4-5 YEARS .

You see, the inflation has pushed up the interest rates.

Now, here's my prediction:

The inflation rate(11-12%) is currently higher than the interest rates for 5 years(10%). You are losing, right?
O.K. keep losing....But, my guess is
...the inflation rate, linked to crude oil prices + food crisis + other factors....

WILL START GOING DOWN WITHIN 1 YEAR......

Why?

Because within 1 year :

• The Crude Oil Crisis will blow over.
• Food crisis will go down due to the monsoons
• NDA will form the Government (I think within 6 months, for that matter)
• Political stability under NDA will ensure better economic decisions, though I like Dr. Manmohan Singh (poor guy, his hands were tied by political compulsions.....if freed from constraints, he could have by himself solved the inflationary mess we are in. I hope the country remembers he saved India from ruins !)

So, after 1 year, the Inflation Rate goes down......within 2 years, it might even touch 5%.

But your Bank's Interest Rate will be 10%.....

So, you GAIN BIG TIME........
10%-5% = 5% ASSURED GAIN for 3-4 years.

You can even wait 2 months more for the Interest Rates to go up to even 12% .

INVESTING IN SILVER.......part 5

By now, I guess from the charts all you folks are more or less convinced that Silver's the future profit-making commodity.

Yielding better gains than gold, or stocks and other instruments.

Well, so how do I buy silver ??? You ask....

Here are some options:

1. Silver Bars. These, however, should have the purity certificate. Plus, buy them from reputed banks. Recommendation : Excellent
2. Silver coins. Again....the purity + good banks. Incidentally, some silver's upto 99.99% pure.Recommendation : Excellent
3. Silver Accounts. Certain banks offer silver accounts, where you can buy silver...that is, the money you commit makes the bank buy and hoard silver. You can sell the accounts.Recommendation : Excellent to Very Good.
4. Stocks to Mutual Funds of Silver Mining Companies. Recommendation: O.K. to Mediocre. Why? Well, because the company's share value depends NOT ONLY ON SILVER'S PRICE INCREASE, but other intrinsic factors.

So, that's it......I would definitely go for silver.

The economy might be gloomy, cloudy....but that's where the proverb kicks in :

Every cloud has a silver lining .

So you really want to be super rich ?? .....Consider this

Study the lives of the super rich.....and you'll find some very interesting things.

Contrary to popular belief...in their academic & professional lives :

NONE OF THEM WERE......

BRICKS IN THE WALL.

George Soros narrowly escaping from the concentration camps....
Bill Gates a college dropout....
Richard Branson deliberately escaping death (havin' a brush) 10+ times....
Warren Buffet (currently #1) doesn't give a damn about MBA 's in Finance & what not.....
Dhirubhai Ambani selling "pakoras" to pilgrims in Mount Girnar......
J. Rockefeller & so on & on .......

How many MBA's do you know who have made it to the Top 1000 Richest People in the World ?

Investing in Silver .....part 4

Uncertain times for the global market.....with crude oil touching $140 / barrel....
....rising global inflation rates...
....even food crises (who could have even thought of that !)

But. once again......check out this graph . I think I got it from kitco or some other source...anyway, it's a wonderful graph that shows the returns when it compares Silver versus Gold versus Dow Jones Industrial Average :






What more should I have to say, folks......

Well, I'm getting e-mails and calls from worried investors all over the world asking me about silver, silver and more silver. Instead of phoning me you can send me an e-mail....I can attend to your problems.

But before switching off your PC......remember :

The electronic mainboard of your PC uses a little bit of silver.

Add all the electronics components and gadgets....I hope you understand

WHY THERE'S GONNA BE THIS
SCARCITY OF SILVER !!!

Investing in Silver....part 3

The other factors that are contributing to silver prices skyrocketting up are:

The currency traders are exiting the market and entering the bullion market. These type of traders prefer gold, silver & platinum. Once they start to realize the value of silver...prices will escalate like anything.

And currency traders know very well the fact that THE PRICES OF SILVER HAVE MORE THAN DOUBLED AGAINST THE VALUE OF THE U.S. $ SINCE DECEMBER 2001.

Once these same set of traders realize that returns from silver will be far greater than gold, obviously they'll turn to silver.

check out the following graph from stockcharts.com:


Post 9/11......after a buffer time, the U.S. $ (red line) begins to fall.

FROM ABOUT THE SAME TIME, SILVER PRICES (blue line) BEGINS TO RISE.

Obviously, this is an effect of the currency traders shifting attention to silver.

Investing in Silver....Part 2

Some of my readers ask me - I have heard of gold, but I haven't heard of silver as a means of investment. Why ?

Well, it's elementary.

Mr. Warren Buffet, the world 's No. 2 richest man ("Oracle of Omaha") as also his guru Mr. Benjamin Franklin has openly stated that the entity "Mr. Market is a neurotic person" .

It's a problem of "mass psychology".....people do buy and sell in hordes. We all make the mistake of buying when something's overvalued......that's why we all lose in the stock markets.

You see, silver's been GROSSLY UNDERVALUED FOR THE LAST 100+ YEARS.

Countries stopped buying silver in the late 1800's, and we started buying GOLD.

It was money or gold or real estate.

Then came the stock markets and other means of investment.

This resulted in a steep ARTIFICIAL DROP in the value of silver.

And that's another reason why silver is vastly undervalued.

It's still undervalued.

INVESTING IN SILVER ........Part I

Investing in silver has proved to yield far better results than the stock markets (for example, the Dow Jones Industrial Average or even the Asian Stock Markets) and gold.

Now, check out this fact......

During the period July 2003 to November 2006, if you had invested in the following 3 items, you would have gotten these profits :

• Returns from Silver were 210 %
• Returns from Gold were 84%
• Dow Jones Industrial Average yielded a mere 35 %

So, how come savvy investors HAVE heard of silver yielding results, yet it is not yet that publicized ??

Yes, it's that mass market psychology, folks....the same mass market psychology that the greatest investor of all times, world's #2 richest man as of last year Mr. Warren Buffet & his 'guru' Mr. Benjamin Franklin prompted to say that "people buy and sell in hordes".

This is in fact, the RIGHT TIME to buy into silver...it hasn't peaked yet.

Check out the graph below. graph source : kitco.com



The above graph shows how silver prices are skyrocketting.

Silver prices have especially started to move real up after September 11, 2001.......I 've also noticed that.



Another fact :

There is going to be HUMONGOUS SCARCITY OF SILVER in the market. Why is that so ?

Because the demand FAR EXCEEDS the supply.

This is because silver is used extensively in PC mainboards, electronic circuits and even some electrical circuits.

Due to the huge boom in PC manufacturing, there is going to be a HUGE DEMAND FOR SILVER.

And right now, my research indicates that there IS JUST NOT ENOUGH SILVER AVAILABLE TO BE PROPERLY EXTRACTED FROM MINING.

GOLD & SILVER .......right time to invest

This is just about the right time to invest in both Gold & Silver .

As for Gold, as I had pointed out in my blog globalstudy.blogspot.com

1. The dollar is weakening against the euro & other strong currencies. That always historically pushes up the gold. There's an INVERSE RATIO between the two.
   
2. It's basically a wartime economy, folks. Some analysts are of the opinion VHNWI 's are hoarding up on gold in billions. Besides these some corporations are also stuffing up gold.
3. This leads to a temporary shortage, pushing up gold prices even more in the future.
4. Further terrorist attacks or even the threat of further attacks will boost up gold further.
5. There's a credit crunch, leading to gold price increase.

SILVER

As to silver, there's a serious scarcity in the market. There are newer demands on silver brought about high-tech.

Plus, all you have to do is look at the silver price hike...

Between 2003 July - 2006 November, gold hiked by around 90 % while silver hiked by 200 %.

In fact, silver might be the GREATEST LONG-TERM INVESTMENT , apart from some pockets of real estate....which are in fact, more hard to predict.

Main principle in becoming rich EASILY

We can all become rich easily, believe me.....

Yeah, I know, you've already become a skeptic. Even I was.

But then, let me share with you the ONE PHILOSOPHY that is ABSOLUTELY ESSENTIAL in BECOMING RICH :

BE POSITIVE.

Whatever obstacles, come your way, you gotta be positive.

I'll show you 100 + ways of becoming rich, but you've got to be positive.