Most people with an in-depth knowledge of the openly blatant, illegal, in-your-face, try-and-stop-us, daily manipulation of the gold and silver bullion markets, believe that junior equities will have more leverage than physical bullion (especially Silver ) over the next ten years, and that this leverage will not be otherwise diminished until the price of gold and silver settles comfortably in the $7,000.00 to $8,000.00 range for gold and $450.00 to $500.00 for silver. Back to the historical 16 to 1 ratio.
But there are, of course, performance (profit and loss) and political risks involved in investing in junior equities that are not present in owning the physical bullion. Venezuela, Bolivia, Ecuador and Peru to name a few.
So, what to do ? How do we best try to ensure a return on our investments in such a climate ?
I believe a prudent investor should hold a chunk of both physical bullion and equities with the greater percentage going into junior equities as long as the New York and London bullion markets remain rigged: to (1) support the $US dollar and (2) to give the designated and protected (by the US Treasury) heavy hitters an ongoing opportunity to steal money from Main Street and gullible Wall Street and Fleet Street gold and silver investors, with $billions in naked short sales and a battery of other scams and frauds.
Here’s what I did.
I own a basket of junior gold (28) and silver (4) equities; mostly producers, but some Explorcos. They are all in Canada (29) or Mexico (3).
I own big chunks of Sprott Physical Gold Trust – PHY.U and Sprott Physical silver Trust – PHS.U. For those who are not familiar with these Units, you can get delivery any time you wish, of Sprott physical gold or silver (which is fully allocated and stored at the Mint in Ottawa) subject to certain minimum withdrawal amounts. In other words you can’t request delivery of nickel and dime amounts every other week.
And I also buy, on a regular basis, physical gold and silver from Vancouver Bullion & Currency Exchange at 800 West Pender Street, who, in my experience always has the best prices here on the West Coast. And the neat thing about them is you can phone in the AM, get a locked-in quote (which changes every 20 minutes) pick up your physical gold and/or silver in the afternoon with cash, certified cheque or a Bank Draft and away you go. No fuss, no muss…..put the bullion in your back-pack and get back on the bus.
Fred25
