For those of you who are thinking about buying the stocks of mining companies and the stock of those huge multinational oil corporations it is my opinion that they have reached the top of their value. That is, if the United States of America becomes a “Green Friendly” Nation. Sooner or later solar, wind, water and other “Green Friendly” technologies will replace the need to burn huge quantities of oil, coal and natural gas.
As far as the precious metals are concerned they too have reached the level where it is quite risky to purchase such stocks. The economy can get much worse than it is. In which case, people cannot eat precious metals and when people need to buy food they certainly will not be buying silver or gold.
The same situation occurred soon after the Arab oil embargo of 1973. When the oil started flowing again metal prices dropped like a rock and remained relatively stable until those oil prices went sky high again due to fear of the lack of supply and truly greedy market speculators. There is no shortage of crude oil and it seems that most precious metals are mined only after the price of those metals also increases.
There might be a few bucks to be made in the short term, but the investment in mining companies for the long term is truly a waste of your available capital. Better investments can be made that will yield a whole lot more in the long run. Those wars in the Arab World will not last forever and I for one believe that it is foolish to risk ones life savings on whether or not some Arab decides to stop the flow of crude oil to the United States of America.
When you really stop to think about that situation, we truly have been supporting the Arab World for a mighty long time, and that is how we are now being treated for bringing most of the Arab Countries into the modern World. Yes, if and when we can put a stop to the burning of fossil fuels, soon after, those Arab people will be right back to wandering the desserts and doing other things to earn a living. When the oil money runs out they will most likely find a better place to live, that has safe drinking water and places where one can raise animals and grow a whole lot of food.
Now is not the time to buy any kind of mining stocks. Their big run up in price is just about over and all that remains is for those big money investors to sell the precious metal markets short. Kindly remember that Bunker Hunt tried to corner the silver market and he too failed to make himself richer.
He did go bankrupt because he put all of his money and money that he did not have, into as much silver that he could buy at prices back then that reached 40 dollars per ounce. Within six months thereafter the price of silver was under 10 dollars an ounce, in spite of the many tons that Bunker Hunt owned. That too can happen to you, in regard to the loss of value of those mining stocks or the ownership of the metals.