Precious Metals: Going Down With The Ship?

This was the comment made late last year on one of the blogs I frequent, the last time we saw precious metals prices this low. Of course, as someone who has been involved in the space for more than a few years, I have to point out that 1550 gold and 28 dollar silver is not something to be depressed about unless you bought too much at the wrong time last year. (Not to pour salt in anyone’s wounds– but a reminder to always give yourself time, preferably six months, to build a position in this or any investment.)

But back to the comment about going down with the ship– it speaks to the moral imperative of owning gold and silver. Of owning it whatever the price is, of owning it no matter what the chatter boxes on the boobtoob say about it, of owning it in spite of the pathetic need for hope that somehow the boomtimes can be resurrected. The casino of “mainstream” markets are so rigged, the damage of chasing after the twin idols of quick riches and instant gratification so widespread– not to mention disgusting– that going back to the same old, same old investing is not the answer.

The statement above should be seen as a positive statement, one made by a person expressing a larger worldview, one based in reality. A worldview not only about gold and silver, in the end, but about turning away from false hope in the idea that everything will be alright (meaning I can go back to sleep now) because our politicians and central planners care about us, or even have the ability to help us if they did.

I am confident that this worldview will continue to gain support, though, in the months and years ahead. Every time we hear news like what we heard over the weekend about JP Morgan (JPM), for example, it is just one more gut check to investor confidence, one more moment where people may begin to realize that doing what worked in the past, in the future simply won’t. As I’ve written repeatedly, we can only take so much of this kind of news.

At some point, more and more big boys (and gals) will begin to realize the need for true diversification, and realize that going short metals that should be viewed as the basis of people’s portfolios is one of the riskiest and stupidest things of all.

In the meantime, welcome to the exact inverse image of the parabolic blowoff these markets saw last year.