Picking Up Some Silver
Source: http://briskycapital.blogspot.com/2009/05/picking-up-some-silver.htmlPosted on Thursday, May 28th, 2009 | In Energy Markets, Market Commentary, Silver
I picked up some silver today via the span class=”blsp-spelling-error” id=”SPELLING_ERROR_0″ETF/span (a href=”http://finance.yahoo.com/q?s=slvamp;=”span class=”blsp-spelling-error” id=”SPELLING_ERROR_1″SLV/span/a). I don’t claim to be an expert about metals, but I’ve been reading a lot about smart investors moving into metals, and I too am not that comfortable with the amount of money our government is throwing around. Many are buying gold. Specifically John span class=”blsp-spelling-error” id=”SPELLING_ERROR_2″Paulson/span and David span class=”blsp-spelling-error” id=”SPELLING_ERROR_3″Einhorn/span, two excellent hedge fund managers. But I did some research and saw the gold/silver ratio has been out of whack. The historical average (and the actual amount available on earth) is about 15:1. In more recent times, that ratio has moved higher, but now it sits around 63:1, and I think it will correct. So I asked myself, what is more likely to happen, silver to appreciate, or gold to depreciate? Normally I’d say a combination of both. But with these guys buying gold like they are, I’d say either span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_4″silver/span is going to appreciate, or the ratio is going to get even more spread. br /br /Just taking an educated guess on this one. There has been some great commentary on this via Seeking Alpha, so I’ll just defer to the experts. Good stuff a href=”http://seekingalpha.com/article/140087-gold-vs-silver-there-is-no-debate”here/a, a href=”http://seekingalpha.com/article/139846-what-is-even-more-enticing-than-gold-silver”here/a, and a href=”http://seekingalpha.com/article/139024-why-the-silver-etf-has-been-sterling”here/a.br /br /Disclosure: Long span class=”blsp-spelling-error” id=”SPELLING_ERROR_5″SLV/span.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’//blogger.googleusercontent.com/tracker/819581243324579563-2560987604757873816?l=briskycapital.blogspot.com’//div
Last 5 posts by Michael E. Brisky
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 About Michael E. Brisky (http://briskycapital.blogspot.com)
Welcome to "In the Know." Here I discuss macro trends in the market, and how I think investors can profit from them. I particularly follow energy stocks and other beneficiaries of secular growth. My investing style would best be described as a hybrid. A hybrid of value and growth; of fundamental and technical analysis. I think you have to be flexible to be a successful investor, but also disciplined. |
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