As you are all aware – for the last year, and especially since January, I have been telling members to increase your gold/silver holdings to at least 10% of your total net worth.
I then encouraged members (based on the ‘fundamentals’ as well as what is happening globally) to increase that position to 20% of your net worth. This guidance is documented in many club meetings and writings that have been sent to members. Historic articles and videos can be found at mikelathigee.com and the club website.
So the question now is – What do I do right now to make money? Well I have stated on numerous occasions that silver moves very violently up and down. Since March, it has skyrocketed from $14 to today over $24 an ounce. Many of the silver and gold mining stocks have doubled or tripled during this same time. For those who still do not have exposure to gold or silver I would suggest to take a position. The main reason is – I see continued weak US economic performance, which is very bullish for gold and silver – due to a weakening US dollar. I also believe a position in an ETF that focuses on gold and silver mining companies has much more upside potential than an ETF that simply focuses on the spot price of silver.
Platinum is the next precious metal that I see having an opportunity to move (it is ‘lagging’ for now). At some point, I believe platinum will catch up to gold. I will keep you posted.
One of the main reasons I remain so focused on gold and silver is because of the non stop printing of money by the Feds while corporations have leveraged their balance sheets from 3 trillion in 2005 to $71 trillion today. In that same period US companies have spent over $6 trillion on share buy backs instead of investing in the business and share buy backs create no economic benefit except inflate share prices and make executives rich.
Precious metals will continue to move up due to the the following factors – ongoing financial crisis, negative US Treasury yields, a flood of ‘quantitative easing’ by central banks, fiat currency debasement, zero to negative official interest rates, out of control government spending, huge global debt, a weakening US dollar & the risks of hyperinflation. Not in the last several decades have all these factors happened all at the same time making gold and silver so attractive.
I know my message has been the same for a long time and those who listened are seeing massive gains through taking past action but it is not too late.
I believe silver will continue to move up much faster than gold – with wild consolidation periods. Industrial demand for silver remains strong. More than 100 silver mines around the world are closed due this ‘covid’ phenomenon and now there is unprecedented strong demand for silver coins. In addition, when I was looking at historical data, silver peaks before gold and it does ‘moves’ that are significantly more dramatic both upward and then downward. As I watch CNBC today, (July 28) the main story all day has been the bullish run on gold and silver – as the masses take some profits along the way and enjoy the ride. We were a year ahead of the masses in our conversations about gold and silver.
For those of you holding now – a large position in gold and silver – I believe we will continue to see the move upward but expect consolidation periods along the way which will open up for new buying opportunities. Silver is always of particular concern when investors hold it because it moves up and down faster than any other commodity I have seen. It is for that reason that – for those holding a silver position – it is good to take profits along the way. I believe silver has much more room to run however. Taking some profit in your silver mining companies, silver ETFs etc. makes sense at above $23.5 an ounce. I suggest take about 10% profits on your silver holdings now and stay long the rest of the position. For more conservative investors you might take more profits at this time.
Despite the uncertainty in the markets, the ‘LVIC Fund’ continues to perform and 350k of 2 million was allocated into the stock market. In less than 60 days that 350k has increased to over 450k. In addition, a few of the private placements that manager / member Praveen has overseen are now engaged in additional financings at higher prices than those when we became involved.
In the oil project – Mark and Paul are in an incredibly strong cash position and that bodes well for all involved. Their prudent management style of sound negotiation and buying at a massive discount will pay off in volumes to all those involved. At the moment the team is deep into negotiation on an acquisition target.
Our largest project led by Jeff Clark is being masterfully managed. You all received an update that he is now leading the industry by moving his gyms outside. We are already seeing a influx of new gym members who were unable to work out anywhere else; however, he is juggling regulations and with only one outdoor gym opened so far he is working on the others to try to get results and generate income. I have said it many times in the past and will say it again – Jeff will ensure we see our way through this difficult time and I am confident we will prosper and have several new opportunities because of the many other gyms going out of business. This is a testament to Jeff’s capability as many other entities are either gone or will not make it.
I took some “heat’ after our last club meeting from “Big Brother” for having an event that was in excess of 50 people and no face masks. Big brother is watching and I am doing my best to keep up communications and balance it with regulations.
What I see in the coming months is tremendous opportunities in the stock market and the beaten up commodities sector as a result of a weak US dollar because commodities are priced in US dollars. I am looking at specific sectors that I believe will be beneficiaries. In the early 2000s, I oversaw a $1 million investment in uranium stocks at under $8 a pound that skyrocketed to over $120 a pound and many investors made huge sums of money by investing in the portfolio and investing on their own following my teachings. I believe there is potential again and I will update members as I see opportunities.
In addition, many parts of the commercial real estate industry are in a shambles. In about a year I believe we, as club members, will be looking at “bottom feeding” at cap rates that will be better than we saw in the residential real estate in 2010. These are just my quick thoughts on this week and as we prepare for the upcoming opportunities. With a solid track record of success – please share this narrative with friends and associates and post on your social media. By growing our membership base, it will allow us to look at larger deals with less competition. It will be several months – but it is prudent we start to grow our membership base and all members will benefit with extra buying power.