Why I’m Cautious On Silver
Mike Hammer of The Gold Enthusiast - InsideFutures.com - Tue Mar 26, 11:20AM CDT
silver bars

Yesterday I had a chance to sit down with The Gold Enthusiast, who recently caved into increasing pressure to cover silver, to ask one question: In the face of all the optimism, why are you cautious on silver right now?

Ummm, OK, it didn’t really happen that way.  There wasn’t anyone in the office yesterday.  And there wasn’t really a lot of pressure.  The Gold Enthusiast spent most of the day driving, alone.  But not in the depressing-rainy-Hemmingway-novel sense, it was for good inspiring reasons.  Just a lot of driving.  So, of course, one of the topics pondered was silver.

You see, your friendly Gold Enthusiast has been plagued lately by one question.  If there is so much apparent optimism for silver right now, why does he still feel like it’s a time for caution?  Why not throw the farm at it now, while silver is in such a great position with respect to gold? Isn’t silver trading at an extremely high ratio to gold at the moment, and doesn’t that mean it’s time to buy silver?

Well, Yes and No.  Yes in the sense that if you’re going to buy precious metals now, it’s a good time to buy BOTH gold and silver.  After all, if you think gold is going to rise significantly soon, history says silver will get dragged along, and if that happens silver will likely rise more proportionally than gold.

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