Raw Greed

Buying Airlines as a Gold and Silver Hedge

$60 Oil would mean airlines would likely return to 2007 prices, the gain would be 300% or greater for the entire sector. If oil were to rise to $200 it would be extremely inflationary and bullish for gold and silver. Your precious metal investments would likely double or more. Long-term you are buying into a sector that is down on average 70%. In this sense you can afford to be wrong about one carrier, as long as the sector returns to historical norms at some point. History has shown that as we emerge from a recession the stock market and individual sectors will end up higher than previously set levels.

You are staring at an opportunity to buy travel infrastructure starting at .30 on the dollar.

A few years ago CAL was under $9 and shot to $40 in about a year, giving some investors a few hundred percent gains. The same was true for AMR and basically all airlines. This is the cyclical nature of the sector.