TD, I've been seeing similar statements for some time and have been wondering, given a Y2K
disaster, why would one be better off with Ag than with Au?
Don't know that they would be better off with silver, the standard argument is that in a barter economy that silver would be used for smaller purchases than gold. That is day to day purchases silver would be used and gold would be used for more major purchases.
Of course many think the Y2K is only hype, that is why each should invest according to their own understanding. For example if you give the y2k zero chance of happening, then perhaps zero investment in the precious metals would be appropriate. On the other hand if a major financial problem is something that your understanding of the markets has lead you to believe. Then perhaps the appropriate precious metals investment in gold and silver based upon your needs would be the prudent action.
Regarding the BusinessWeek article: They seem to be saying somewhat the same thing Merril Lynch
was saying; viz., that the demand for silver in India is very elastic. Interestingly, there has been little
discussion on this thread of this potential monkeywrench in the "silver bull".
Yes, there is always two sides to every market. So far up until very recently say July 1997, the bears are correct, is this merely a bear market rally? Perhaps, this is the case, if you were in a country where the currency was losing value would you exchange your precious metal for that currency?
A cat with gloves catches no mice! |
