Sunday, April 24, 2011

INVESTOR BEWARE - MINING STOCKS OR PHYSICAL?





The article & video is created by Mike Maloney. Original source Below is the summary :-

Which investment vehicle would you prefer to hold in the instance of a bank holiday?

The threat of a possible worldwide, round-robin currency devaluation is very real. It is not hard for us to imagine a time, not too far off in the future, where sovereign and institutional banking debts reach crisis crescendos, so much so that bank holidays may be declared globally.

Imagine a period of time when brokerage and banking accounts are frozen, ATM's are not functioning, communications may even be disrupted.

A Brenton Woods-type II scenario would most probably come about with central bankers from around the world gathering and agreeing upon on a round-robin of currency debasements based upon debt to GDP levels, etc.

In such a scenario almost every fiat currency will lose against real monies like physical gold and silver bullion.

At the same time, equities or stock shares will simply stand frozen in their brokerage accounts getting devalued in their respective currencies. In such a scenario physical gold and silver bullion could multiple many times in price while shares of mining stocks and other traded companies are debased in value.

Bullion vs. Mining Stocks? -> Our Bottom Line

For us the risk/reward ratio of mining shares stands second to the low risk - high reward ratio and potential gains for silver and gold bullion either in our hands and or stored in private 3rd party segregated vault storage facilities.

We will simply continue to put our gold and silver money where our hands can access it, as we patiently wait for what we believe will be the greatest wealth transfer in history.

Original source

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