Precious Metals Pick: iShares Silver Trust (SLV)
Click to EnlargeHowever, gold isn’t the only precious metal you should have in your portfolio.
My current precious metals strategy is to add to precious metals today and double my most recent additions every two dollars per ounce down in the price of silver, emphasizing silver and platinum over gold.
Relative to gold, silver is cheap. The higher the gold/silver ratio, the cheaper silver is. The historical gold/silver ratio has been 15:1. Today, it is about 63:1.
Central banks do not own silver, which they could dump on the world market to depress prices. This is a big plus for silver as a store of long-term value.
A good strategy would be to pick away slowly at iShares Silver Trust (SLV) over the next few years. Each silver share corresponds to 10 ounces of silver.
Dick Young is the editor of Intelligence Report, an advisory newsletter focusing on a mix of blue-chip dividend payers, fixed-income funds and commodity funds to compound your wealth without undue risk to principal.