What do Warren Buffett, Bill Gates and George Soros have in common? Big bets in silver, not gold.
It may be surprising, especially with
the recent moves in the Midas metal; but silver is where the
billionaires are putting their money.
On the face of it, it may seem a bit
odd. Gold is the traditional store of value. And when the global economy
is on the tipping point of inflation or deflation and slow growth seems
to be wired in until we reach the tipping point, the rational hedge
seems to be gold.
But for long-term investors, it’s
important to understand that silver prices have an 84 percent
correlation to gold prices over time. Nothing else comes close to
running neck and neck with gold. Now, silver is certainly more volatile
in the short-term, but that volatility smooths out over time.
I prefer both personally, as always hedge your bets against the volatility that is coming in the next few months. Bear market Miner ETF's are on the cheap one sides trades always make me Leary.
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