I hope you got some while it was on sale. If not and you’ve been wanting in, you probably shouldn’t wait. I’m just a simple caveman, but I think the days of gold in the 1500s and silver in the 20s are rapidly disappearing in the rearview mirror. Anyone waiting for levels even further below those recent lows to get into precious metals is probably kidding themselves.
Year-To-Date Performance: Silver, Gold, SP 500, and the Dollar – Fitch Downgrades Europe :
Here’s how things stack up so far.
Silver +22%
Gold +10.8%
SP500 + 4.7%
US$ – 0.1%
Biggest Week For Gold In 3 Months:
While Silver had a better week than Gold (+5.4% vs 4.3%), Gold managed its biggest gain in three months as the Fed’s QE-ness seemed to separate the precious metals from other asset classes. Oil underperformed relative to the USD’s weakness (-2% on the week in DXY) managing only a 1.3% gain (and ending below $100). Silver and Gold have no managed four weeks in a row of gains as the latter has more than retraced half of the all-time high sell-off range.
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When things are normal and orderly and sane, there is no real difference between owning physical metal, and owning certificates that make a legal claim to physical metal.
When things go sideways, that difference may become more important.
Case in point… it used to be that any Greek Bonds which I might own were exactly the same as the Greek Bonds that the European Central Bank would own. It also used to be that they were backed by the same Euro that was behind Germany and France. Everything was all certified and legal and safe.
Now? Suddenly ‘private’ bondholders are subordinate to banks and other nations. If I owned a bond, its value would be cut in half, and I’d find that the law had changed under my feet so I have no recourse. The same bonds, owned by other nations, are of course exempt. When things get tight for the big dogs, the law goes right out the window, at least for the little dogs.
Gold and silver are really high right now. Betting they will go significantly higher – and stay there, long enough to sell, and actually realize the return – is betting that things are going to get dangerously close to going sideways. Might be time to switch over to physical metal at some point?
Having the physical is the only way to be 100% sure of ownership.
Since I’m invested via 401K I’m doing the next best thing and using physical metal ETFs like PHYS, SGOL, and PSLV. I’d be leary of GLD and SLV.