With precious metals on a tear, it is a hard decision whether or not somebody who has not purchased any silver or gold to date should be buying at current levels. Gold is at $1500, silver has crossed the $45 threshold.
While I’m a firm believer in the long-term fundamentals of gold and silver, mainly because I’m a firm believer in the long-term stupidity of our politicians and Federal Reserve, it is tough to buy right now – especially silver. Silver the last six months has gone up over 100%. A crazy move.
Percentage-wise, gold has not has nearly the same run in recent months as silver. Therefore, if I’m looking for exposure, I’m probably buying gold right now.
In my opinion, the better approach is to maybe buy a couple silver ounces (physical) at each paycheck. Ease into a position, and view it more like a form of savings rather than investing (as you view buying stocks).
I think both may have a long way to run long-term. As long as real interest rates are negative, capital will flow into alternative “currencies” which is exactly what gold and silver are. If your cash is losing purchasing power in a bank account, gold and silver should continue to do well.
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