Just a thought

Before I do, I just wanted to thanks everyone for their patience on the 2008 recap article. It’s coming, I promise!

Think about this for a second. You’re driving down the highway and you see a sign saying “No fuel available for next 70 miles”. You glance at your tank indicator and it seems you a little less than a 1/4 of a tank left. Unless you have a car that has awesome MPGs, you need to refill. You pull into the next gas station.

Question: How much would you be ready to pay for each gallon?

Does $5 sound ridiculous? Unless you don’t have any interest in getting home, you’d probably pay it anyway. Now assume that the station is selling gas for only 50 cents a gallon! You’d fill up wouldn’t you!

This is very similar to the situation now presented. On the run up of gold, silver, oil, natural gas, people stocked up preparing for higher prices, including commercial interests such as airlines, refiners and miners. Now its time to refill their inventories and prices are smashed due to the external factors of the credit crunch.

Investors and large interests alike are buying like these commodities are going out of style – and they are! When users who need fuels and precious metals like people need air, there is no price they won’t pay. The alternative is to stop doing business!

When there is a shortage of supply amidst continuing demand, prices take the far back seat and availability takes center stage.

And basic supply and demand tell us that such a shortage may be upon us.

Suggestion? Buy physical Gold and Silver (and Oil and Natural Gas if you can figure out how). Because whether silver goes to $40 or 400, it will pay to have some when everyone else wants it.

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