As silver jumps around the 2010 levels, those retail investors who like a bargain are shopping with vengeance.
Only last week the US mint temporarily ran out of stock of Silver 1oz American Eagle Coins and the Canadian mint issued coin restrictions.
But why is everyone suddenly going silver side up when gold is also at a 4 year low providing a good investment opportunity?
Price is the main denominator for silver despite not being VAT free silver presents a much cheaper investment when compared to gold. This is why the metal is always a big hit with small retail investors who still want to protect their wealth with minimum financial commitment.
Some traders have gone as far to suggest investors swap their gold for silver, of course in practice this doesn’t really make sense as you would not be able to do a straight swap from gold to silver with a precious metals dealer coupled with the premium attained to selling your gold back and then buying silver would further weaken any gains to be had.
Perhaps the best way forward is to hold a little gold and silver and ignore all the background noise.
If still in doubt just remember that the beauty of gold is its two fold benefits, when the gold price is lower you will be enjoying a profitable yield from your other investments such as equities and bonds and in times of economic, political or even war when your stocks and bonds fail gold will perform very well, rising higher and higher as most flood there cash into somewhere safe and secure like gold!
If you would like a more recent detailed analysis of gold as a means of wealth preservation click here.