In the 1970s gold rose from $35 to $850. In inflation-adjusted dollars, this cycle could see gold replicate the move in the 70s and rise from $350 to $8000. In this environment, silver could also revert to its 1970 ratio of around 20 to 1, which would peg its price at $400. History absolutely can repeat. If you go by Jim Sinclair’s numbers, then cut the above in half. $4000 and $200 is far better than holding onto dollars and earning a few percent a year over the next 3 to 5 years, by which time the bull market should have peaked.
There is 100 times more paper than metal (gold and silver). People holding paper gold and silver (GLD and SLV) will be disappointed. There are no counter-party risks in holding the physicals. No one can default on your holdings.
If you are not comfortable holding physical gold and silver, then talk to us about storage. We offer the finest storage program available – in Montreal, insured by Lloyds of London and totally segregated in your name. As an extra layer of safety, we send two of our employees every quarter and check each and every one of our customers’ inventories – this in addition to the regular audits. Rather than store your metals in Switzerland and Hong Kong, which, by the way, we can do for you, using Canada has a couple of real benefits. If you live in the U.S, you can easily retrieve your goods. Or you can have it shipped to you by UPS or by Brinks. The only way to retrieve offshore gold in Switzerland or Hong Kong is via Brinks (or similar type) air service and it is very, very costly!
Call us at 1-800-822-8080 and ask for information on our International Precious Metal Storage Program. We can explain everything you should know about the program and what sets it apart from any thing else that is offered.