Is PHYS still a good place to park your money?I am like a few others who have kept shares and seen PHYS rise to around $15/share. The Fed announced that its interest rate is (likely) to stay at (near) zero percent for up to two years. If holding gold is less attractive as interest rates go up, then are you likely to hold onto your shares for two years or until something more lucrative comes along?
Hi LA Is PHYS still a good place to park your money?Good question. FWIW I held my PHYS both as a disaster hedge and an inflation hedge. I'm still worried about a disaster in both Europe and U.S., but I don't think higher interest rates are in the cards anytime soon (unless we have another credit crisis).So, I'm waiting and watching - if the European Union and the U.S. make progress on fixing the economic environment, I'll sell. If they don't, I won't. Of course, if PHYS goes below my purchase price (12.01), I probably won't fight the tape, since I've never really been much of a gold bug.Just an opinion.Steve
I would sell if the US government developed a plan to lower our debt:1. eliminating all programs that are non-performing (Dept. Of Education)2. increasing revenues by eliminating all tax loopholes and instituting a flat consumption tax (everyone pays something)I'm not holding my breath that this will happen anytime soon, but am holding my 10% position in gold, silver, and mining companies. PHYS is my preferred method of holding gold.
texasflyfish,We can only hope those things could happen.ksag
At this point, there is nothing on the horizon that tells me to unload any of my metal holdings.I am holding PHYS, GLD, and SLW. All 3 are up dramatically.The world economic situation is bad and until the trend reverses, I am even tempted to invest more, but I am currently rather heavy in metals.
one of my biggest winners this year... I still struggle with why PRO decided to sell when they did, but that's that. I will hold until the interest rates start to rise and I expect Gold to be well over $2500 by then.
I may re-enter on dips myself (after closing PHYS earlier due to the Pro rec), but if I do get back in, I'd consider pairing it with a silver position. Silver is more volatile but may actually be the better bet over a period of several years.Check out this interview with Eric Sprott on why he thinks silver will go higher:http://www.youtube.com/watch?v=CtuBVru2XNwIf you don't have time to watch, the thesis is, #1, gold and silver are trading well outside their normal multiple (currently gold trades at 43x silver compared to historical 16x), and #2, there is enormous short interest in silver, with more "paper shorts" than physical silver, ie. if the shorts had to cover they would be unable to do so. Sprott suggests those two items together will likely "resolve in silver's favor" as he puts it.In other words, if gold falls, silver may do fine anyway. If gold rises, silver may do even better. (I'm reminded of one of the gold bulls earlier this year who said "if the market does well, gold will be fine; if the market tanks, gold will take off").Rob
Uhsplit, might I suggest you look at some miners suggested by Christopher Barker. He seems to know what he is doing, and the miners stand to do well even if metal prices don't change. He correctly identified Northgate Minerals which just netted me a 35% return in a couple months. Just search for him on Motley Fool. TMFSinchiruna.fool on
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