Old Rules for Gold, Silver Donít Apply Today|
May 02, 2013
This article was originally printed in Numismatic News.
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Precious metals have given us another wild ride this past week. The watchword among the so-called experts is confusion, as none of the old rules seem to apply or make sense.
For example, paper silver is now over 62 to 1 ratio versus paper gold, yet the premiums being paid for live physical product would put it at 57 or so to 1. This is right where it was before the recent precipitous drop in the entire metals sector. In fact if you compare American silver Eagles to gold Eagles we are at 51 to 1 for live coins. If you are willing to wait four weeks for delivery then the ratio is 55 to 1.
The interesting thing is that I and every other dealer I have spoken with can sell every ounce of silver we can get that is in small size recognized brands. So why is silver not moving while gold has recovered $120 an ounce from the recent intra-day low?
Is this a trap dreamed up by the Central Bankers or the major banks? Who knows, but it sure stinks!
While I would not recommend chasing metals at current premiums, hold what you have; it is your only insurance against financial madness. If you want to buy more at these levels contact an established reputable dealer and buy delayed delivery at the smallest premium available. Make sure you contact more than one for competitive pricing and don’t get carried away by some fancy sales pitch. In fact if they try to up sell you, say “Goodbye.”
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• The Essential Guide to Investing in Precious Metals
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