‘Poor Man’s’ Metal Play
We hear from a business owner about his own factory improvements and AI… and it has nothing to do with corporate tax cuts:
“I am a business owner. I completely appreciate the tax cuts that we have seen but they are not the reason we are pursuing improvements to our plant.
“I am in the food industry and I can tell you that it is ridiculously competitive. I am seeking automation answers that will allow me to reduce my workforce. This has 100% to do with survival.
“My costs are rising daily. Utilities are up. Property taxes are up. My state has implemented a sales tax quagmire from hell that is causing me to have to invest in expensive software to calculate out a ridiculously small amount of additional taxes.
“My move to automation has nothing to do with who is the president or tax cuts. It has to do with survival. My employees are facing stratospheric housing and medical costs and that requires more money to live on. I care about them a great deal so we are trying to find every way we possibly can to increase their pay.
“Businesses out there are not pursuing automation because of tax cuts. They are pursuing automation because we live in a global economy today and I compete with China, Thailand, India and South Africa and if we cannot figure out how to do something quicker, faster, cheaper and better, we will be DOA.”
Your Rundown for Monday, March 11, 2019:
‘Poor Man’s’ Metal Play
Silver — historically it’s the poor man’s metals play.
If you’re new to metals, if you don’t have a lot to invest, if you don’t know how to get fractional gold… you can buy something like SLV, which is a synthetic instrument, yes, but gives you access to metals demand.
These aren’t trades. These are long-term, buy and hold, set it and forget it plays.
Of course, buying bullion is always preferred to synthetics. Silver bullion is very easy to find; mark ups aren’t bad. Any local metals shop can help you
NEVER buy numismatics
So why silver specifically? Between the huge explosion of lithium ion batteries for electronics and driverless cars, a coming nationwide 5G infrastructure roll out and all the various tech uses already in place — it’s a safe bet today’s $14-$16.50 range for silver won’t last.
A year or two from now, silver could easily be $22-25 again.
Bottomline: silver has organic demand gold does not have.
It isn’t a sexy trade, it isn’t going to impress your neighbor at a cookout and it isn’t going to make you a huge pile of money overnight
What it is going to do is help you diversify, play a long-term trend and protect yourself with metals against global economic calamity.
Market Rundown for Mon. March 11, 2019
S&P 500 is up 22.5 points to 2,765.41.
Oil is up 69 cents to $56.76 per barrel.
Gold is down $5.80 to $1,293.50 per ounce; silver, by the way, is down 6 cents to $15.28 per ounce.
Bitcoin’s down $62.26 to $3,867.67.
Have a good day. We’ll talk tomorrow.
For the Rundown,