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Do you feel that the Canadian, US, and Australian stock markets will survive?

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Posted August 4th, 2009

I have been asking this question of other writers and advisors and would appreciate your courtesy of a reply.

I'm an investor of BOTH paper PM stocks and physical PM. Paper for the great leverage to the price of silver. Physical silver for bartering and survival. I have been asking learned advisors such as yourself this question and would be very interested in your opinion: Do you feel the Canadian, US and Australian stock markets will survive as a viable marketplace for trading paper precious metal stocks? Or do you feel that the financial systems are so fragile now that you are advising your clients only to purchase physical precious metals?


What I suggest (please note that I'm not a registered investment advisor) and prefer myself is the diversification among strategies (approaches) - which is similar to what you have mentioned in your message. If you would like to read more on that topic, as far as choosing positions sizes is concerned, please read the following essay: http://www.sunshineprofits.com/research/universal-investor-speculation-a...

At the moment I think that there is high probability that Canadian, US and Australian securities exchanges will survive as a viable marketplace for precious metals stocks. If they collapsed, I believe that this shock would push prices of physical metals much higher, thus making up for the losses on the paper markets.

In other words, I think that using paper markets for leverage is a good way to go, as long as one remembers to have the physical as well.

You will find more information about portfolio structuring in the Key Principles section

Best Regards,
Przemyslaw Radomski