I have titled today’s daily “Let’s Talk About Silver.” Silver is the main theme in essays by Andy Hoffman, Wealth Wire, Ted Butler, GATA, Warren Bevan, and Ed Steer. I have assembled them all together, in one daily, to help you get a clear picture of why I consider silver to be the best investment of the decade. Silver outweighs gold in my portfolio by two to one. Would I be surprised to see silver sell for $100 an ounce? Yes! That’s not high enough! I have already expressed my view that I expect gold to hit at least $4,500 and the gold/silver ratio should settle in at 30:1 or less, so that alone projects a silver price of at least $150. But remember, I am talking about PHYSICAL silver; silver 10 oz. bars, one oz. Eagles or bags of pre-1965 “junk” silver. Owning “paper” silver in the (worst) form of an ETF or even mining shares is not the way to play this move. If ALL paper currencies are suspect, and they are, then if your wealth is in a silver stock or silver ETF, when you cash out, you are right back into the currency you should be trying to avoid. You will have a larger pile of that currency, sure, but if the hive mentality at the time is fleeing from paper investments, where will you find the silver, at any price, to buy with your paper profits? You can avoid this issue completely, by buying the item (silver) and avoiding the derivative (ETF/stock) to begin with.
Silver is still 35% below its recent high, and is the best buy in precious metals, in my humble opinion. Gold is 8% below its spring high. My last two purchases were Gold Buffalos, but I was so unbalanced toward silver that I decided gold was the place to put the new funds – plus, I really do already have all the silver I could ever need!
I end today’s daily with an educational piece on mid-tier and development mining companies, written by my friend an personal stockbroker, Eric Angeli over at Global Resources. Eric is worth talking to if you are considering the mining share sector. He gives great service and knows his stuff.