by Jeff Clark, Casey Research:
As we’ve been pointing out for some time, there’s a difference between buying gold and silver bullion – the physical metals – for prudence, and speculating on related stocks.
As the metals may continue fluctuating like a plucked string on a musical instrument for some time and stock investors hate such volatility, there’s good reason to look for even lower stock prices for many great companies. To mitigate this risk, we’re looking into options for making new “gold insurance” trades – more on that when we have something to recommend.
But for bullion itself, that’s not something we speculate on; we want to accumulate as much of it as we can for prudence, given the worsening economic conditions we see ahead.
This being the case, and there being a significant chance the gold market could recover before premiums on physical metals come down, it makes sense to buy bullion now.