Silver. The single, most important investment decision

What did I do that changed my mentality about money forever?

I purchased Silver.
Apart from educating myself about the need for financial literacy, the purchase of silver did more to motivate me to build my portfolio, my discipline, my passion and ultimately, develop my business, than any other thing I could have done.
Once I spent my money on a hard asset, something that I held in my hands, it made irrelevant everything I had previously wasted my money on.
Robert Kiyosaki gave me the first key in Rich Dad Poor Dad. He talked about the differences between buying assets versus liabilities. If you are just getting started in the quest for financial freedom, this book is as good a place to start as any.
But why silver?
Many people have talked about the fact that there is always a bull market in something. That is to say, that in the financial arena there are ups and downs in all investments. The key, as Dan Denning points out, is to be a bull hunter. Look for the investments that are increasing in value. Sometimes this is easier said than done.
For me, silver was a no-brainer and it still is.
Silver currently trades at about 1/50th the price of gold and by all accounts it is more rare than gold. Conservative estimates put the, above-ground silver at 1/5th that of gold. This is a historical record, and by saying historical, we are looking at thousands of years. In addition, the historical price ratio to gold has averaged around 16 to 1. That is, 16 ounces of silver would buy 1 ounce of gold, versus the 50 to 1 mentioned above. Silver also has a huge function to play in industrial use and an ever growing presence in medical application due to it's anti-bacterial characteristics. Some critics point out a declining demand in it's applications in photography, due to the rise in digital photography, but the industrial/medical demand increases seem to be replacing this decline.
These things alone are enough to justify an investment in the white metal.
Add in the reality of inflation and this investment is a slam dunk for me. The real inflation rate is much higher than the Governments' reported 2-3% . Remember this reported rate excludes food and energy. I don't know about you, but food and energy, (Gasoline, electricity, heating oil, natural gas, etc.) are a huge portion of my paycheck. Some estimates put real inflation around 20%.
Silver and gold tend to counter the rise in inflation by rising as our dollars lose value.
At the minimum I look at silver as an economic insurance policy. If silver and gold fall, that means that my dollar investments are most likely increasing in value.
These are just a few of the reasons that I believe silver is in a long term bull market.
I would encourage any reader to investigate for yourself.
But a word of caution; Keep an open mind. Silver is a volatile market. It is a market that is still a little out of the mainstream, but the insiders are extremely polarized. They are either wildly pro-silver or emphatically anti-silver and as such there are many conspiracy theories on one side while the other side shows impenetrable ignorance about the real advantages to silver.

There are so many other fundamental reasons to buy silver that it would take me many pages to reveal, but instead I'll let you discover them for yourself. There are libraries of information on silver out there, check it out

One of the most important rules in investments, is "Don't be dogmatic" This just means that you should never fall in love with an investment nor should you hate any investment. Don't believe the hype on either side. Learn for yourself and develop sound reasons to support an investment or reject it. Sometimes the best trade is, "Not To Trade". And beware of following the herd, they are usually wrong.

In closing I would answer a question many have asked me, "why don't you like gold?"
I do like gold as an investment. I also like it as an insurance policy. I do own some gold. And if there was no such thing as silver I would own a lot of gold. I just believe silver is better.


JT

Legal disclaimer
This post is for informational purposes only and is solely the opinion of the writer. Nothing in this post should be considered investment advice. Before investing in anything, the reader is encouraged to do his or her own research and consult with a certified financial advisor. Which John Tompkins makes no claim to be.
John Tompkins and Toro Creek Investments accept no liability for financial losses or damages incurred by the reader because of this post.