There is a fundamental way of thinking about silver that could mean the difference in your entire silver investing strategy. Are you investing because of a problem or because of a plight?
Most people who invest earn their money by predicting problems and discovering the solution. But our world is changing before our eyes. Silver investment is more about investing for a plight and less about trying to solve a problem.
What in the world is the difference?
With a problem we assume and seek a solution. We assume that we can “solve” the problem in the long term and win. In other words, we hope to watch our wealth grow as silver rises over time.
A plight is completely different. It’s a dilemma which has outcomes that we can do little to change or influence. Therefore we have to manage, as best we know how, the impact of the outcome on ourselves.
Think of it this way. If my brake lines in my car are soft, I have a problem. I need to take my car to a mechanic and figure out why my brake fluid is leaking. I solve the problem and continue my life driving a safe car.
If I’m exiting a downhill ramp at 60 MPH and my brake pedal plummets to the floor and doesn’t slow me down, I have a plight I have to manage. I’m in a tight spot. Try as I might, it’s not about getting my car to the mechanic. It’s about managing the outcome of my speeding car as best I know how in that moment.
And there in lies the rub between many silver investors. It doesn’t take a rocket science to see silver’s movement over the last couple years. Massive movement and massive wealth has been made. Everyone is asking themselves, is silver still a wealth building solution to the market? Can I still make money?
That might be the wrong question…
That question views the market as a problem and trying to find a good investment as the solution for making money right now. That isn’t wrong – but it doesn’t get the bigger picture of why silver needs to be part of your investment portfolio.
The bigger picture is the world’s financial economic system is in a plight with no real way out. We must ask ourselves, what is the best way to manage our outcome in this dilemma?
I believe one of the best ways is Silver.
Are you solving problems and managing your outcome?
How long will the world financial car drive before it plows into something? I’m not sure. But we are in a situation that isn’t going to end pretty, so part of the way I’m managing my outcome is with Silver.
That doesn’t mean I stop trying grow my dollars (and wealth) with my investments. We all need to do that as much as we can. Make hay while the sun is shining.
But it does mean that I have two separate reasons for my investments. Silver isn’t just a way to grow my wealth for the next couple years. Silver could drop to $15.00 tomorrow and I still think its one of my best options to manage the outcome of our financial situation.
But many current silver fans would be dropping silver like hotcakes, calling everyone involved fools. Why? Because its no longer a solution to their short term investing problem.
So next time you are wondering about your recent wealth gains (or losses) with silver, ask yourself: are you trying to solve a problem or manage your outcome? Both need to be addressed, but don’t confuse yourself.
If you clearly know which part of your investment has a purpose for wealth growth and which part of your investment’s purpose is for the upcoming car-without-brakes-crash, you will have more peace of mind during the car ride.
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