Blog : Buy Silver With Both Hands

by Peter Leeds on March 15th, 2016

=====  Just Released - latest penny stock pick:

• $1 per share
• revenue growth of over 100%
• significantly undervalued

This one should go higher, and soon!

Click here to subscribe and see it!

=====  Our newest tutorial video - "Short Selling Explained"

===== Oil:

These comments are relevant to $USO, As Well As All Oil Production and Exploration Stocks, Which Includes Some the Penny Stocks We Select

Several days ago, we explained that oil prices would come back down, after a sudden resurgence to over $40 per barrel.  We cited that the loose "cooperation" between all the different Middle Eastern nations was precarious, and would not last.

Well it fell apart even faster than we predicted, as Iran has stated that they are committed to increasing production until they reach the top range of their new quota.  This took the wind out of the sails of the "resurgence in oil" camp, and drove the commodity back towards our expected (lower) levels.  Keep in mind, however, that we do anticipate $112 per barrel oil in the long term, but prices need to capitulate first.

Meanwhile, global stockpiles have been rising fast, as higher prices have engendered greater production, while global economic weakness has done little to absorb supplies.  

All of this has been throwing oil-related penny stocks around, and for every risk there have been several opportunities which we are looking into for our penny stock analysis.  Our subscribers see these picks every Tuesday, and later in the week they get to se Peter's personal holdings, trades, and insights.

===== Precious Metals:

These comments are relevant to $GLD, $SLV, As Well As All Precious Metals Production and Exploration Stocks, Which Includes Some the Penny Stocks We Select

We have mentioned for a long time now that we expect higher prices for precious metals, like platinum, silver, and gold.  You can see Peter's comments about the gold to platinum ratio here, and since that was recorded the disparity has grown even more striking.

The yellow metal was trading for much lower levels when we were talking about the potential it holds, and since then it has climbed aggressively.  In fact, especially in contrast to the horrendous start to 2016, gold has been on a strong upward trend.  

Silver is now joining platinum in the undervalued camp, when contrasted in relation to gold.  To be clear, we expect gold to rise towards $1,800 per ounce, but also anticipate that silver and platinum will rise an even greater amount in terms of total percentage increase.

We're looking for silver prices to approach $30 per ounce (from current levels of only $15).

=====  FED:

These comments are relevant to All Stocks, Which Includes the Penny Stocks We Select

The Federal Reserve (FED) is having a 2-day meeting, starting Tuesday.  They may announce that they are raising rates again, which would mean higher interest rates.  

Those higher rates mean that banks can charge more interest, but that they also can pay more interest.  Therefore, investments like guaranteed investment certificates, companies which pay dividends, and bonds are able to pay investors more interest.

As it becomes easier to get higher returns from safe investments, things like gold lose a bit of their appeal in terms of a store of value.  That is why you'll see gold prices soften a bit ahead of the FED meeting, and potentially drop even more if rates are officially increased.  

Of course, if they end up holding the line, or dropping rates, the yellow metal (and silver and platinum) should bounce a bit higher.

Eventually, gold prices will detach from FED decisions, especially considering that most of the demand is currently coming from nations (China, Russia, India) that do not at all care what the FED does and doesn't do.  They are buying, and what the interest rate in some other country is at does not matter to them.

When we perform our analysis into new potential penny stock picks, we take all of these factors into account.  In fact, much of what we discussed in this blog today is what directed our final decision for today's incredible penny stock which we selected.

The final choice (which beat out over 80 others in the exact same industry, and thousands from among the wider markets) is trading for only $1 per share, but we expect it to roar higher in the short and medium term.  You can see it here, once you subscribe.