Safe Haven??

When we look at Silver prices from 1985 to today (Green line in the chart below) and compare the evolution to the one from 1967 to 1974 (black line in the chart below), we can see a very similar pattern. If price would continue to track this pattern, it could mean that silver has just entered a 20 years lasting winter sleep. In the meantime, it would trade between $20 and $50, before taking off again in 2032… From then on, it could gain over 2,000% to reach nearly $1,000.  In my opinion this will happen much sooner, and at a more increased rate due to ever increasing debt, fiscal abuse from our elected representatives, and the FED!

The decision to invest in precious metals is a necessary step toward protecting your wealth in these volatile times. But it still leaves some investment choices to make – chief among them being whether to own gold and silver directly in physical form or indirectly through derivative proxies for bullion such as exchange-traded funds (ETFs).

A key difference between gold v. gold ETFs is the significant counterparty risks the ETFs introduce. Owners of a GLD – or IShares Silver ETF (SLV) – own shares of a trust that is supposed to be backed by the metal. Shareholders don’town title to the metal itself. On the other hand, when you own actual gold vs. GLD, you aren’t effectively entrusting your wealth to HSBC, the mega-bank that serves as the primary custodian for the ETF’s bullion.

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