Comments on: The Silver Trade is Better than Gold

By: James

James — Wed, 09 Dec 2009 22:59:29 +0000

Zach,

Excellent posting. thank you for producing a relevant and sober analysis of investment opportunities in silver.

Regardless of silver’s upside opportunities, I wanted to quickly note that in addition to being a nice investment opportunity, getting silver dollars can also make nice Christmas gifts for younger brothers or cousins.

Thanks,

James

By: 5142152-337

5142152-337 — Mon, 30 Nov 2009 18:19:36 +0000

Good article! Two things, however, I believe need to be said. First, PHYSICAL silver is the way to go as ETF’s are essentially paper silver and can cause you some SERIOUS grief, and second, since the silver market is a much smaller market (than gold) volatility is a real possibility. But, silver will be a terrific purchase for the future.

By: silverslut

silverslut — Mon, 30 Nov 2009 18:19:01 +0000

Anyone who will take the time to actually research the fundamentals on silver will quickly wonder why it is so dang cheap. It is much much rarer than gold, much much more useful and needed in the modern world. The answer is that it is a tiny market and since it is one of the canary’s in the the money mine, the price has been held down using paper metal. Since the first law of economics states that the cure for low prices, is low prices, it is obvious that the market has not been setting the price for silver, but it will. One day soon, it will be revealed to one and all that silver is in a very serious shortage. When more than 1 in 1000 wake up to the realization that silver is a better investment than gold, the price will start shooting up. Then it will attract even more attention and all of a sudden industry will find that there is no silver for them at anything near today’s price. Then you will see silver prices going up $10/day, then $20/day. The next law to attend to states that for every action there is an equal and opposite reaction. Since the price has been too low, for too long, it will soon be too high. How High? It will easily top $500. It could top $1500.

By: paxjds

paxjds — Mon, 30 Nov 2009 18:18:29 +0000

GLD and SLV are good for day traders only. Doubtful they have any gold or silver, so dont get caught owning them when the music stops. Even hedge funds are leaving GLD for gold coin and bullion where they take possession.

Monex is great for coins and bars, but I recommend taking possession. In this day and age you cannot be cautious enough. CEF out of Canada for gold and silver is the only fund I know with Gold and Silver, and audited twice a year.
I am comfortable with them, and from many articles, they are highly recommended with 45 years or so in operation with no blemishes.

Extra fiat paper money is nice, but silver and especially gold is where you take your winnings off the table for long term gain and security from all the market and political manipulations and shenanigans.

By: goodasgold

goodasgold — Mon, 30 Nov 2009 18:17:36 +0000

Ok article, except for your use of the probably fraudelant SLV and GLD ETFs. AND EVEN THE USE OF THESE FRAUDS FOR SHORT-TERM TRADING JUST SUPPORTS THE GOLD MANIPULATORS. Let’s get everyone out of these frauds into bullion or at least into the truly bullion backed ETFs and similar produces. Trust
KITCO, their pooled accounts ..? I don’t know. A European friend learned that his bank which he thought was holding gold was only holding paper
gold. Ask, if there is any doubt. Trusting any US or UK bank or financial institution is naive at best given the increasing revelations of the depth and breadth of deceit, fraud and outright theft. If we enter a world deflation, maybe silver will experience some slack in industrial demand but will that be more than made up by investor demand? I dont know. Any opinions out there about this????

By: James75

James75 — Mon, 30 Nov 2009 18:16:36 +0000

The dow and gold will eventually be a 1:1 ratio. The biggest opportunity is silver as this article points out though. I have much more silver than gold in my portfolio. Foget the fact that silver is more voilatile- long term it will be extremely valuable and not just for a brief period. Check out bullion.tel if you want a way to get silver eagle bullion below spot value.

By: HomerII

HomerII — Mon, 30 Nov 2009 18:16:06 +0000

I agree with indianamark. I bought HL near the end of september at $4.20 and I am currently up about 55% today.

By: indianamark

indianamark — Mon, 30 Nov 2009 18:15:33 +0000

P. S. Hecla could go up another 268% to get back to it’s price last year. It would still be cheap for a company producing eleven million ounces plus per year.

By: indianamark

indianamark — Mon, 30 Nov 2009 18:15:15 +0000

Had you bought Hecla (HL) last November, you would be up 491%.

had you

By: mbkelly75

mbkelly75 — Tue, 24 Nov 2009 15:24:16 +0000

A good article that makes a good point and good comments also. I would use SLV and GLD only for tracking prices or a fast trade – not for any long term hold in a portfolio. There is too many questions about their transparency and actual holds of the metals instead of paper. I use CEF for a long term hold in my portfolios. They are clear and transparent with an outside audit company. They even pay a very small annual dividend instead of charging you to hold the PMs unlike some alternatives. They hold both Gold and Silver bullion in equal portions and re-balance when one gets too far ahead of the other. This means that I do not have to and saves on both commissions AND taxes. Think about it.

By: widestrides

widestrides — Tue, 24 Nov 2009 15:23:43 +0000

But silver crashed with stocks in 2008-09 while gold held up MUCH better. It could happen again.

By: pgcyf2007

pgcyf2007 — Tue, 24 Nov 2009 15:23:18 +0000

Mr Scheidt

Thanks for your analysis but there is an increasing WARNING about BULLION ETFs see below

Morgan Stanley pays damages for Precious Metals Fraud
Written by Jeff Nielson Friday, 24 July 2009 11:26

Silver Wheaton The Safe Alternative to SLV
by: Jeff Nielson September 21, 2009 | about: SLV / SLW

What do you thing about ” gold and silver” prices manipulation through financial investment ( Bullion ETFs like GLD & SLV) has not really the gold and silver inventories they said that means some banks are creating ” gold/silver paper” like they created ” paper/fiat money”

I would appreciate a discussion on this important subject for small investors