I was not early to the precious metals trade by any means. But I was lucky enough to get advice from a friend in 2007 that convinced me to go long gold from around $900-1050 and silver from $9-12.
Like many others, today I face a conundrum. Should I sell at least some of my position? It seems greedy not to, yet I haven’t trimmed at all so far.
Why not sell after a 433% runup? Greed? Hopefully not. I like to think it’s a lack of alternative. I’ve considered flipping silver profits into more palladium, but that idea just seems meh for now.
Perhaps silver longs should trade bullion for US dollars. Roll the cash into an Ally CD at 1.2%, maybe. With real price inflation running at 5-10%, and taxes owed on the meager interest, that CD should return an impressive -7% annually. Seems like a very effective way to wipe out savings, but I’ll pass.
I recently added to Google (NASDAQ:GOOG) shares, bought some Southern Copper (NYSE:SCCO) and Pan American Silver (NASDAQ:PAAS), but frankly have not seen many tantalizing equity opportunities lately. Amazon (NASDAQ:AMZN) and other high-flyers look incredibly overpriced here, but I have thus far resisted any illogical urges to short stocks (hold the line, it’s easier to be long PMs than short stocks).
So for now, I plan on holding silver. The only way a substantial pullback seems likely is an end to Fed printing. Not in the cards, in my opinion.