Don't Let The Silver (And Gold) Bull Shake You Off

Gold and silver exchange-traded funds (ETFs), a measure of large investor interest, are experiencing outflows as opposed to an almost interrupted inflow over the last few months.

Mining stocks that either look for or produce these metals have been moving sideways, testing the "mettle" of even perma-bulls.

Many investors see these as negative signs. But I view it as Mr. Market's last big effort to "shake the tree," causing as many people as possible to fall off the galloping bull and head for cover.

As David Morgan has so aptly – and during times like this, often said, "A precious metals' bull run (especially that of silver) will either wear you out our scare you out!

These gold and silver ETF outflows should be viewed like an almost parallel universe compared to the continuing robust physical demand for these metals on the part of investors – both large and small.

(Click on image to enlarge)

Largest Outflow from Gold Ever

Buy When Others Are Selling

ETF in/outflows represent "hot money." But you are an "investor" not a speculator.

Buy value (physical silver and gold) in tranches (portions) and hold it for insurance, liquidity, and price protection against your other assets. And along the way, there's a good chance that you'll turn a profit too.

Now with the central banks' moving toward digital currencies, you have – in your hand, to which no one else has a claim – what has for 5,000 years served humankind as honest money.

With it, you retain flexibility (liquidity), privacy, and diversification, because its price tends to move in a non-correlated way to most other assets.

And it gives you peace of mind because you know that in either inflation or deflation, there will always be a finite amount of metal available. Unlike fiat (paper currency) which can and will be "printed" in unlimited amounts as governments attempt to solve their mistakes in monetary policy by increasing the quantity in circulation (either digitally or physically) to infinity.

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