Comment: Real estate going up, gold and silver sideways two years

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Real estate going up, gold and silver sideways two years

In the long term, of course, gold and silver are going up because the Fed keeps printing money.

But in the medium term, they're taking a breather after the recent fantastic run-up. Silver is particularly volatile, and I wouldn't be surprised if it touched $16. $20 sometime over the next two years seems a certainty.

In contrast, now is the time to buy real estate due to the low interest rates. Just play with a mortgage calculator to see how much of a difference the interest rates make.

Everything is cyclical. In your basket of investments: precious metals, stocks, and real estate, you want to emphasize the asset category that is currently undervalued, and right now that is real estate.

If you have some extra cash in February, you might want to make a short-term seasonal precious metals play, buying in February and selling in April. The bid/ask spread for physical coins is too great for short-term "month-trading" so you'd want trade the ETFs inside an IRA, which also has the advantage of avoiding the 28% collectors item capital gains tax. Of course the ETFs are just paper metals and not suitable for long-term investment.