Thursday, January 24, 2008

ON THE EFFICACY OF NEWSLETTERS!

You are a silver investor.
You expect big things of silver and expect to make big profits.
You want to get out at the top as close as you can.
You are not sure how close you will be to that top.

To that end, you review the charts, read free materials on the web and discuss tactics with fellow investors on message boards. You however, don't subscribe to any expert newsletters as you see the cost as an unnecessary overhead. You have decided you can get it all for free on the web.

Let's do some maths.

Silver peaks in April 2004 having moved from $4.50 to $8.12 and drops to $5.55 in 25 trading days thus claiming back 71% of the move.

Silver peaks in May 2006 having moved from $6.67 to $14.36 and drops to $9.46 in 24 trading days thus claiming back 64% of the move.

Practically all silver profits are made on these big but short moves up before silver drops big time and meanders for protracted periods of time. The maths is simple. During these rapid corrections silver is on average taking back 3% of the bull move EACH day for 24 to 25 days continuously!

If you invested $10,000 at the start of each big move and see it increase to $20,000, you are on average losing 3% of your $10,000 profits each day that you procrastinate selling. That works out at $300 a day of lost profits for each and every day.

This and similar silver newsletters cost less than $150 a year. If one newsletter can give you the information that makes you decide to get out of a silver carnage ONE day earlier then our $10,000 investor not only saves $150 but gets a free newsletter for a year from the other $150 saved.

Sounds like a win-win situation to me and YES I happen to have subscriptions to two other precious metals newsletters!