40 Questions for Any
Long
Term Precious Metals Investor
By Dr. Jeffrey Lewis
Invariably, as the price
of silver and gold begins moving higher, more investors will be drawn in to the
mostly paper precious metals market.
Most of these buyers will be looking only
at the price and could therefore be setting themselves up for a substantial
disappointment. Many will simply take their losses and exit the market feeling
scorned, perhaps never to return.
Those who see few alternatives, or who
perhaps actually take delivery of physical metal will be faced with a steep
learning curve that will hopefully be overcome by necessity at the least, and
curiosity at best.
The Importance of Asking Questions
All long term precious metal investors will
probably at some point end up asking themselves the following questions about
the precious metals market. This helps illustrate the complexity of what seems
to be on the surface a quite simple and barbarous investment.
Furthermore, it is those who can answer
most of these questions that will be more likely to see the connections and the
good reasons to keep at least some portion of their wealth diversified into
precious metals.
40 Questions Long Term Precious Metals
Investors Should Look to Answer
-
What is a futures contract?
-
What is a short or long position?
-
What does concentration mean?
-
What is a market corner?
-
What is a margin call?
-
What is stock to flow, and why does it
matter?
-
What is paper versus physical?
-
What is the ratio of paper gold or silver
versus physical?
-
Why is that ratio important?
-
What is the silver/gold ratio?
-
What is covering?
-
How many ounces of gold are there per
futures contract?
-
What does J.P. Morgan Chase have to do
with the commodities market?
-
What does it mean to 'deliver' into a
commodities contract?
-
What is a short squeeze?
-
What is an ETF or Exchange Traded Fund?
-
Why is ETF inflow important?
-
What is the CFTC?
-
Why has the CFTC been investigating the
silver futures market for five years?
-
What does J.P. Morgan Chase have to do
with the aluminum market?
-
Why does Germany want its gold
repatriated (i.e. returned to Germany)?
-
Why does (or did) the United States have
Germany's gold? (Clue: WWII)
-
Why will it take seven years for the
United States to return Germany's gold?
-
Why are gold and silver producers’ stocks
trading at all-time lows?
-
Why should investors not buy gold or
silver stocks?
-
What is the GOFO rate?
-
Why is the GOFO negative?
-
What are silver leasing rates?
-
What is permanent backwardation in the
gold futures market?
-
How does permanent backwardation affect
global markets?
-
What is COMEX?
-
Can a COMEX default occur?
-
What is confiscation and how likely is it
to happen again?
-
Why have Central Banks closed their short
positions and opened long positions in the gold futures market?
-
Why are silver futures shorted so heavily
by major players?
-
How long do fiat currencies typically
last once they have abandoned a gold or silver backing?
-
What is hyperinflation?
-
Why did President Nixon unilaterally
remove the U.S.Dollar from the Gold Standard in 1971?
-
Why did President Johnson remove silver
from currency circulation in 1965?
-
What is the current purchasing power of a
pre-1965 silver or dime?
Basically, finding accurate and
well-informed answers to these forty pertinent questions seems crucial for long
term investors who anticipate riding the silver bull market of a lifetime.
For more articles like this, including
thoughtful precious metals analysis beyond the mainstream propaganda and
basically everything you need to know about silver short of outlandish price
predictions, check out
http://www.silver-coin-investor.com