Recently I was quoted in an article for Fox Business called; The Lowdown on Buying and Selling Silver. In this article I was quoted as recommending a 75% allocation to physical gold and a 25% allocation to physical silver for investors who are looking to insure their U.S. dollar risk of their porfolios. This diversification I first recommended when I wrote my book Buy Gold and Silver Safely September 2010. Have things changed since I first wrote the book? Does this same allocation hold true today having seen this recent pullback in the price of gold and sivler? This article will provide answers.
The Physical Silver Opportunity Today
Right now silver possibly offers a better opportunity for investors, more so than gold. This is because silver’s price volatility has seen the metal come down off it’s high of $49.50 that it reached earlier in 2011 to the low $30’s where it is trading at today. Silver today is offering a $17 discount to the almost record price it acheived earlier this year. Putting 50% of one’s precious metal allocation into 90% silver bags might be a good move at present. These coins can be acquired at 1% over the spot price of silver.
The second best silver investment are one ounce American Silver Eagles. They have a higher premium because of the cutback in the amount gold dealers are allocated but the buyback is also higher. The larger, 1,000 ounce silver bars are also perfect for IRA’s and 401k’s.
This article was written for Seeking Alpha and continues here: http://bit.ly/goldorsilver