What is the best investment?

If I had $1000 to invest, where would I put it? If you have read my blog for any amount of time you have heard me preach on buying gold and silver. And if you had bought gold when I first mentioned it at $640.40 your $1000 investment would be worth $1438 … silver was at $13.49 and today would be worth $1324. Gold has outperformed silver since 11/2006. But to be honest silver is still undervalued. As gold creeps higher people cannot afford it. So where to they look to invest next? Silver. Granted, gold is still undervalued based on current oil prices and they both will rise. $1500 is going to be the target I think we’ll see this year or perhaps end of first quarter next year for gold. Silver on the other hand has a long way to go to reach the $50 mark. And $50 is still cheap based on oil prices. $75 would be more realistic.

So based on that “hunch” I would still grab silver. $1000 of $17.84 silver today will net you 56 ounces. If it even goes up to just $25 an ounce you will have $1400. Gold at $921 an ounce gives you 1.09 ounces .. that 1.09 ounces at $1200 is only going to net $1308. Even if silver under performs and it only goes as high as $35 an ounce you are looking at $1960 …. and if gold makes it $1500 you will only net $1635.

Granted this is a long-haul investment. You won’t see the returns until late this year end of first quarter next year. But then again I could be wrong. Our weak dollar could bounce back, our 401K plans could all soar in value, stocks could soar and we could discover a cheap way to tap into the oil sands of Canada and the oil trapped in the shale out west and we could cut our dependence on foreign oil supplies and gold and silver will be worthless. RIGHTTTTT … like that’s gonna happen. But again, this is just my opinion and opinions are like assholes anal orifices … everyone has one. If you spend the $1K on my advice … you are taking the risk. I’m not a financial planner nor do I play one on TV.

Advertisements

Leave a comment

Filed under Journal

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s