“Buy silver, sell gold” is the bold call of currency and money analyst Dominic
Frisby in the latest edition of best selling Money Week.
Frisby looks at the relative value of silver to gold and comes to the
conclusion that silver is a better buy right now. We share his bullish view
on silver and hence our current campaign regarding VAT free silver coins.
From the article:
“Today we consider gold and silver.
We suggest that you should buy one and sell the other.
We then advise walking away for a couple of years…
Silver and Mother Nature’s ratio
There is, say the wise old men of geological lore, something like 15
times as much silver in the Earth’s crust as there is gold. Received wisdom
is that in days gone by, the value of silver relative to gold reflected the
amount of metal Mother Nature has given us: gold was, for hundreds of years,
about 15 times the price of silver.
Last year 27,579 tonnes of silver were produced (according to my most
reliable of precious metal data sources, Nick Laird of Sharelynx) and about
3,000 tonnes of gold. In other words, just over nine times as much as silver
as gold was produced.
However, the gold price – about $1,270 an ounce – is about 75 times
silver’s price of $17 an ounce. What gives?”
Dominic kindly mentions us as a bullion dealer who will buy gold bullion
from you and sell silver coins and bars to you:
“If you want to buy physical silver, our friends in Dublin, the
precious metals dealers GoldCore, have a new scheme whereby you can
buy silver coins VAT-free. They’ll also, as most dealers will, buy your
gold”.
We make a market in all popular bullion formats from small gold sovereigns
to large 400 ounce gold bars and at the risk of doing ourselves out of
business, we would caution against selling gold bullion right now.
Sell paper and digital
gold, like Bullion Vault, maybe but not physical gold coins and bars.
Rather both physical gold and silver bullion should be owned as financial
insurance and hedges against currency debasement, bail ins, systemic and
counter party risks and the myriad other risks today.
There is the possibility that gold continues to outperform silver in the
short term. This is quite likely if we get another bout of severe deflation
and the next stage of the global financial crisis. There is also the real
chance of the currency reset where gold prices are revalued by the global
monetary authorities to $5,000 to $10,000 per ounce. This could see silver
underperform in the short term.
Silver remains severely undervalued versus gold but more particularly
versus stocks, bonds and other financial – digital and paper – assets and we
believe will outperform most assets in the coming years. Allocations to both
depend on risk appetite and motivations for buying.
Read the full article by Dominic Frisby on MoneyWeek
here.
Market Updates This Week
Bank Bail-Ins Pose
Risks To Depositors, Investors & Economies
Take Delivery of Gold and Silver Coins, Store Gold Bars – Hobbs
George Soros Buying Gold ETF And Gold Shares In Q1
Hedge Funds Take Record Long Silver Position As Silver Bullion Deficit Surges
Gold and Silver Prices and News
Gold down 1.4% for week on Fed rate views – Reuters
Asian shares set for weekly loss, Fed talk lifts dollar – Reuters
Gold Takes ‘Brunt of the Selling’ as Fed Primes Markets for Hike – Bloomberg
Philly Fed index dips to negative 1.8 in May – Morning Star
Gold jewelry is getting pricier – CNN Money
Warning signs everywhere that the British housing bubble is about to go
POP! – This Is Money
English Farm Prices Fall Most Since 2008 on Brexit Fears – Bloomberg
Rating agencies highlight the gloomy Brexit scenarios – Irish Times
Market Impact of Brexit Is Key Concern for G-7 Finance Chiefs – Bloomberg
George Soros Takes Massive Gold Position, Fears of a Crisis Grow – Value Walk
Gold Prices (LBMA AM)
20 May: USD 1,256.50, EUR 1,120.18 and GBP 862.75 per ounce
19 May: USD 1,253.75, EUR 1,117.74 and GBP 857.37 per ounce
18 May: USD 1,270.90, EUR 1,127.21 and GBP 882.05 per ounce
17 May: USD 1,270.10, EUR 1,121.43 and GBP 877.50 per ounce
16 May: USD 1,281.00, EUR 1,132.04 and GBP 892.87 per ounce
Silver Prices (LBMA)
20 May: USD 16.60, EUR 14.81 and GBP 11.35 per ounce
19 May: USD 16.60, EUR 14.81 and GBP 11.35 per ounce
18 May: USD 17.05, EUR 15.13 and GBP 11.77 per ounce
17 May: USD 17.08, EUR 15.09 and GBP 11.80 per ounce
16 May: USD 17.32, EUR 15.30 and GBP 12.07 per ounce
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