LP always said (and by always, since I first knew him in 2003) that gold would shoot up first, then one should sell your gold and buy silver, as it would shoot up much more than gold did to move back towards (not necessrily to, but towards) 15:1. And that there would only be a short time frame, days, in which to load your stash and toddle off to the dealers to optimise the switch. So he would be saying that silver has a lot further to run in comparison with gold which is not to say that gold isn’t going to continue its run, just that silver will do better.
I’m no good at trading. So for me the question is: “have the fundamentals for owning PMs changed?”, and as the answer is no, and the recent price increases are, IMO, a reflection of markets and people finally catching on to what we have been saying for decades, then I will keep holding. That’s what Bateman is saying, I guess. I shan’t try to finesse between gold and silver because I’ll get it wrong, and there are transaction costs and taxes. If they go down a bit, there’s nothing new about that. I don’t think, for example, that silver will go back to $20 because of the global finance situation and real physical shortages for industrial applications. Your friend could sell some – selling 15% would give him free carry for the rest (subject to taxes) but then, what does he buy?
One reason for keeping silver is that it is still low value compared to gold. So it is more fungible if we have a reset and need to use it for barter. 50% silver coinage, very fungible. At $100 per ounce, a 1 oz pure silver coin will buy you a week’s grocery. While a sovereign is now $1,100; enough for a month’s malt whisky maybe, but not really practical.
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