SILVER OUTPERFORMS in last 2 months
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This is a wee update on an older post. What has changed recently?
- I amended my label for the upper range from "sell gold and buy silver" to "hold gold and buy silver" for a couple of reasons; 1. I hold gold mainly as a hedge against local currency and USD devaluation generally and also increasingly in light of increasingly obviously un-serviceable levels of sovereign debt / quantitative easing that started September 2019. Also 2. Because now that I have some gold, I will be unlikely to part with it just because its price is up in fiat currency terms. You don't cancel your insurance policy when times are good, neither will I sell my gold for a fiat profit. 3. These things are really hard to time and the most important factor; general loss of faith in paper assets will likely result in a significant re-pricing of gold (and silver) to much higher levels (I likely won't sell either if gold goes up 200- 400% but will reduce or stop regular purchases). While I am a big believer in silver, as borne out over the past 2 months (although there was a spike in premiums while the silver futures price dipped - which made 'buying the dip' difficult) I do not want to be a long-term holder of silver - given how volatile it is and the greater storage costs. So, silver I will sell when the G/S ratio hits some key levels.
- The economies throughout the world are in significant turmoil, a lot of mines are shuttered still (the North and South American silver miners seem in for a long-haul). Seeing as silver is primarily an industrial metal, I have been impressed with is relative performance of late. It seems that silver demand has been brought forward and is, at least, counter-acting what may be lower industrial demand. As gold hangs out between USD1650-1750 it is quite possible that a significant portion of investment demand has turned away from gold and towards silver as people may "see" more upside for silver as well as possibly more value for money.
Protect those funds everyone
This is a wee update on an older post. What has changed recently?
- I amended my label for the upper range from "sell gold and buy silver" to "hold gold and buy silver" for a couple of reasons; 1. I hold gold mainly as a hedge against local currency and USD devaluation generally and also increasingly in light of increasingly obviously un-serviceable levels of sovereign debt / quantitative easing that started September 2019. Also 2. Because now that I have some gold, I will be unlikely to part with it just because its price is up in fiat currency terms. You don't cancel your insurance policy when times are good, neither will I sell my gold for a fiat profit. 3. These things are really hard to time and the most important factor; general loss of faith in paper assets will likely result in a significant re-pricing of gold (and silver) to much higher levels (I likely won't sell either if gold goes up 200- 400% but will reduce or stop regular purchases). While I am a big believer in silver, as borne out over the past 2 months (although there was a spike in premiums while the silver futures price dipped - which made 'buying the dip' difficult) I do not want to be a long-term holder of silver - given how volatile it is and the greater storage costs. So, silver I will sell when the G/S ratio hits some key levels.
- The economies throughout the world are in significant turmoil, a lot of mines are shuttered still (the North and South American silver miners seem in for a long-haul). Seeing as silver is primarily an industrial metal, I have been impressed with is relative performance of late. It seems that silver demand has been brought forward and is, at least, counter-acting what may be lower industrial demand. As gold hangs out between USD1650-1750 it is quite possible that a significant portion of investment demand has turned away from gold and towards silver as people may "see" more upside for silver as well as possibly more value for money.
Protect those funds everyone
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