Cody Willard writes for MarketWatch. It is a conventional market site. He is a stock market expert — an actual trader, not a salaried journalist. This is why I was amazed to read his latest post.
He thinks a buying opportunity for gold and silver is here. But not an ETF opportunity. A coin opportunity.
We can’t control when or where opportunity arises. And as you know with gold having crashed some 30% from its highs, I started rebuilding my own physical gold and silver assets in April, looking to take about 1-2 years to build up those assets to about 10%-15% of my portfolio to own/hedge/protect my family with forever.
These words are radical: “protect my family with forever.”
Depending on your personal net worth (the lower your net worth, the higher proportion of silver simply because it’s so much cheaper per oz than gold is), I’d look to have 30%-70% (big range is my whole point) in gold/silver ratio.
I am a long-term investor. I recommend an 80-20 gold-silver ratio based on my Morningstar vs Motley Fool analysis. But if your goal is to make money, as a speculator, he is right: buy more silver. But this is a trader’s strategy. Silver is far more volatile than gold.
He says to buy coins, not funds. I’m with him.
Which leads us to a little more on why I’m so bullish right now on gold and silver coins and bullion and why I am so against gold and silver exchange-traded funds and other precious metal ETFs. It’s my belief that the big banks who control the paper ETF and spot prices have less gold per promise than they’ve ever had in our lifetimes.
He thinks the big banks and the U.S. government will need to get their hands on physical gold. Germany’s demand that the U.S. return its gold is a wake-up call.
So both the U.S. government and the banks that they’ve bet our future on are now in a position where they need to get their hands on as much physical gold and silver as they can and the easiest way to do that is by plundering the wealth of the world’s people by artificially crashing gold and silver here to try to induce them to sell away their physical gold and silver coins and bullion at lower prices. When the Bank of India restricted gold imports that also temporarily eliminated one of the strongest and steadiest demand centers in the world over night. The physical gold trading in India has only gotten further restricted in the weeks since.
Buy coins, not promises to pay you digital money (ETFs).