Financial Times/Chris Giles/4-12-2020
“With confidence indicators falling off a cliff, financial markets in turmoil and real economic indicators plunging, bankruptcies and job losses will leave deep scars on the world economy and hinder its healing for a long time to come, the data suggest.”
USAGOLD note: We referenced this Financial Times report in yesterday’s DMR and repost it now for the benefit of those who may have missed it. It serves as a reminder that it is important to get well hedged for the present if you are not already and to stay well-hedged for the future as more unpleasant surprises are likely. Though premiums on coin and bullion products are on the rise, they are still reasonable, in our view, and we still have a decent selection of items in inventory ready to be shipped.
“The recent action in the physical silver market was a sign that a bird in the hand is worth two in the bush. Owning the physical during periods of distress in markets is preferable to products that replicate the price action in the metal. Products like SLV that hold the silver metal and USLV, which is a triple leveraged silver product, followed the price lower and then higher as the metal recovered. However, this paper silver depends on the integrity of the product if a squeeze continues for a prolonged period. There are no guarantees when it comes to anything but the physical. I have been a champion of silver ETF and ETN products as they have an excellent track record of following the price action in the futures market. However, in the current unprecedented environment, I prefer to hold the physical metal. The only asset that is silver is the metal itself.”
