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
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.
