Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on Ratio Trading Metals. (See the Precious Metals section.)
Precious Metals (Ratio Trading Metals):
I mentioned this same inflection point in SurvivalBlog a week ago when the ratio was then north of 82-to-1.: Gold to Silver Ratio Hits Highest Level in 27 Years – What does it Mean? JWR’s Comment: Again, I recommend that folks seriously consider doing some ratio trading. The approach should be much like the oft-quoted “buy low, sell high” mantra. In the case of commodities ratios, we should say: “Ratio trade whenever ratios reach extremes.” After all, reversion to the norm happens more often than not.
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Economy & Finance:
Even CBS News is sounding alarm bells: 10 years after Lehman, is another crisis brewing?
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The Argentine Peso’s recent relative strength appears to be due to short term market intervention rather than something secular. So we can probably expect to see it in back down in the low 30s by late October. For those who trade, this might be a good time to short the Argentine Peso.
The discontinuation of the Browning Hi-Power pistol from Browning’s product line has had a predictable result: Prices are now rising on nearly all of the variants that were Browning factory made. My advice fro investors: Buy Hi-Powers that are still brand new or like new in their original factory box (and/or pouch.) The more scarce variants will see the greatest gain in value. One such model to jump on if you can find it is the .40 S&W Hi-Power Practical (with a matte hard chrome frame.) All of the Browning factory Hi-Powers chambered in .40 S&W are particularly desirable, because they have a beefier frame. Using a drop-in barrel, you can down-convert these to 9mm. Then you will have a dual caliber pistol. And even better, you will have a 9mm pistol that is capable of shooting +P ammo and heavy 9mm SMG loads.
But basically any of the scarce variants (two-tone, camouflage, et cetera) are bound to be worth a lot in just a few years. One notable variant is the Capitan. This was a Mark III variant with a tangent rear sight and a rowell hammer reminiscent of the early model HP35. It was introduced in 1993 went out of production around 2005. And of course any pre-war Hi-Powers, German occupation Hi-Powers, and Inglis (of Canada) Hi-Powers also have great collector appeal.
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often get the scoop on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!