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Hello! It’s good to
write you again. Please forgive me for not getting out this newsletter sooner
but some temporary obstacles did get in the way during the remaining months
of 2005. I look forward to providing you with a high-quality ezine for this
month and every month this year and beyond. With that, I want to give you
some insights into what I feel is the best opportunity to grow your
hard-earned for the next few years. I will share with you what I feel has the
best chance of making you richer faster and more assuredly that any other
investment vehicle in the world today. But before I get to that exciting
commentary, let’s take a moment to do what everyone does in January; a
review of 2005.
How did the markets do? And more importantly, how did you and I
do? Here are the results for the major markets for 2005:
How
did the markets do? And more importantly, how did you and I do? Here are the results
for the major markets for 2005:
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Dow
Jones:
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down
1%
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Nasdaq:
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up 2%
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S&P
500:
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up 3%
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Gold:
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up 18%
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Silver:
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up 29%
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How
about some of my favorite stocks?








The above is
not a complete list of all the stocks that I have researched and shared with
my students and clients but it does show some typical results. Exciting
results. 2006 has the potential for being even more fruitful due to
increasingly bullish fundamentals for the world of precious metals,
commodities and energy. In this issue of PA, I want to focus on what is my
choice as the top investment opportunity.
My Favorite Speculation is Silver
It may finally make a major up move this year. The bullish
fundamentals are now better than ever and I think that everyone out there
should consider (at the very least) a modest
amount of silver in their portfolios. There are many ways to
make a play on silver but I seriously look at 4 ways to play silver:
- Silver eagle bullion coins. This is the safest and
least expensive way to add silver to your portfolio. Silver eagles are
minted by the US Treasury and can be purchased through many coin
dealers. As of early January 06, you can probably buy one at about $11
and change so a roll of 20 can be had for about $200-$230. Shop around.
Call several dealers and get quotes. Among the ones that I believe are
honest can be found at websites such as www.investmentrarities.com,
www.swissamerica.com and www.amergold.com. Keep in mind that
I am referring to bullion coins and not numismatic coins. Don’t
get me wrong; numismatic coins (collectible coins) can be great but you
need to be extra careful since you must deal with issues such as
condition (grade), age, mint, dealer mark-ups and so on. If you still
want numismatic coins, do your homework with consumer tips from places
such as the American Numismatic Association (www.ana.org).
- Silver mining stocks. If silver does make a major
upside move in the coming months and years then silver mining stocks will
do very well. Some companies to investigate are Silver Standard (SSRI),
Pan American Silver (PAAS) and Silver Wheaton (SLW). Before you make any
investments, do your due diligence and review your potential choices
with your financial advisor. There are some excellent services that can
help you choose such as David Morgan’s newsletter at www.silver-investor.com and
Jason Hommel’s www.silverstockreport.com.
- Silver Futures. Be very careful here. Futures can be
a high-risk, high-volatility venue. Consider it speculative in spite of
the bullish factors swirling around silver. You can learn more at places
such as the New York Mercantile Exchange (their website is www.nymex.com).
- Options. There are options on silver and also on
silver mining companies. These can also be risky and speculative so do
your homework. Options on silver can also be researched at www.nymex.com while options on silver
mining companies are listed at the Chicago Board Options Exchange (www.cboe.com).
As always, do your research
and speak with your financial advisor. I do believe that the research and the
data offer a bullish scenario that is quite compelling. I am on public record
as forecasting that silver will hit $50 within the next few years.
Recently, some news has come to light
that further the bullish case for silver. Here are some points to ponder:
- As of late 2005, China has announced that it will no
longer be a net exporter of silver. It will become a net importer. What
will happen to the price of silver as their voracious economy keeps up
its appetite for commodities?
- Many new uses for silver are being found. In late
2005 the healthcare and biotech industries are finding that silver is
excellent in antiviral and antibacterial applications.
- In the fall of 2005, a mining industry study
reported a deficit of 40+ million ounces of silver in the market.
Demand is exceeding supply.
- The long-awaited Silver Exchange-traded Fund (ETF)
looks likely to be approved and may start trading in early 2006. This
is significant since as much as 130 million ounces may be removed from
the marketplace to back up this security. The Silver Users Association
opposed the creation of the ETF because it could place a tremendous
strain on already tight supplies.
“Stock Investing for Dummies” the 2nd edition is now available!
The 1st edition came out in 2002 and was rated by Barrons, the financial weekly, as
one of the top ten investment books that year (out of 300 books). With
updated information and new insights into the stock investing environment for
2006, the 2nd edition is even better. You can order your copy at:
 http://www.amazon.com/gp/product/0764599038/qid=1138517977/sr=1-1/ref=sr_1_1/104-9137451-8175124?s=books&v=glance&n=283155
An Internet Announcement
A new e-commerce web portal www.SuperMoneyLinks.com
was developed by the great professionals at www.NexWEB.com.
They are a top-notch team that I have joined forces with to bring Mladjenovic content to the web.
For those of you that need excellent point and click Internet services, please contact them directly through their website at www.NexWEB.com.
Tell them Paul sent ya!
Thank you
for reading this issue of the Prosperity Alert. Feel free to pass this along to
others (unchanged, of course) or encourage them to get their own free
subscription at www.SuperMoneyLinks.com. The
next issue will be in your email inbox sooner than you think.
Regards,
Paul Mladjenovic
Email: paul@mladjenovic.com
Tel: 201-585-0239
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