There is one obvious way around this - don't put all your money in the bank in the first place! I go back to what I always say about holding silver and/or gold longterm, not only do you have a real store of wealth but very importantly you have control over it. This way it is on hand to sell, as and when you require. Remember silver and gold are great portable assets with no running or maintenance costs.
But don't take my word for it, do your due diligence and you'll find reams of information on the web. Which brings me to a 'heads up' on Silver and someone who knows a great deal about investment in physical precious metals, a certain Mr Jamie Dimon, CEO of JP Morgan Chase. Since 2012 JP Morgan have increased their physical holding of silver from 5 million to 55 million ounces! This is a huge commitment when you consider silver in 2012 reached £21/$32 an ounce and since then has slid to today's price of £10.75/$16.50 (29.04.2015). So is there something afoot? Well this is what Jamie Dimon had to say in a recent letter to shareholders:
Some things never change -- there will be another crisis, and its impact will be felt by the financial market. The trigger to the next crisis will not be the same as the trigger to the last one – but there will be another crisis. Triggering events could be geopolitical (the 1973 Middle East crisis), a recession where the Fed rapidly increases interest rates (the 1980-1982 recession), a commodities price collapse (oil in the late 1980s), the commercial real estate crisis (in the early 1990s), the Asian crisis (in 1997), so-called “bubbles” (the 2000 Internet bubble and the 2008 mortgage/housing bubble), etc. While the past crises had different roots (you could spend a lot of time arguing the degree to which geopolitical, economic or purely financial factors caused each crisis), they generally had a strong effect across the financial markets.
Silver is currently a greatly undervalued precious metal, which would point to a huge upside at some point in the future. So if the likes of JP Morgan are buying it up in huge quantities, doesn't that speak volumes about where they see the value of this ever rare resource going?! Not to mention what are they anticipating? So if Mr. Dimon has stepped up to the 'silver plate' should you too be considering a tentative step into precious metals? Often referred to as 'poor mans gold' and a 'volatile asset' to hold, silver is looking more attractive by the day with record low prices, but nothing stays the same forever. At some point it will rise!
Well, as they say... 'forewarned is forearmed', not that I'm on the inside by any means, but the price has slipped again -5.89% in a month which equates to a drop of £0.67p an ounce. No doubt they will be buying even more whilst the foot remains firmly on the 'silver price brake'! With silver's next 'big' rally (the next big crisis) the price will rocket so it has to be worth a punt.
Until next time. Stay sharp!
If this has been of any interest or help please share. As always your comments are most welcome!