One of the biggest stories of the market this year so far has been the rise of silver. The precious metal is up 23 percent year-to-date, while mining stocks have been going through the roof. Although gold has been steadily going up, silver is the one that everyone is keeping an eye on.
What does one of the biggest gold bugs around today think?
Former Texas Republican Congressman and three-time presidential candidate Ron Paul said that he isn’t buying gold right now. Instead, he’s buying silver, and has been since the end of the Bretton Woods system. He conceded that he purchased silver earlier this month and thinks it’s a terrific investment.
“About a month ago I bought some silver and so far it looks pretty good, especially [this week],” Dr. Paul told CNBC last week. “Some people say that silver has been demonetized and it’s a commercial metal. But I think gold is money and silver is still money.”
Since 1971, Paul has been investing in both gold and silver for his retirement nest egg and to protect his wealth from the volatility in the stock market.
Due to the fact that there are several bubbles ballooning and popping all over the world, Paul believes silver could be the next great safe haven.
“I wouldn’t buy bonds. I think that’s in a huge bubble. We are defying gravity. These things can’t go up forever. I think we are facing a downturn that’s probably a lot worse than 2008-2009.”
At the time of this writing, silver is inching closer to $18 an ounce, while gold is above the $1,250 mark.
Buying Silver is a ‘Fools Errand”, unless you have years for it to grow and only buy it at the lowest price in any given year.
In June 2008 it was $19.33 by Dec 2008 it had fallen to $12.17. In Aug 2011 it was $42.82, If you had any that you purchased anytime in 2008, I hope you sold it at a profit. What makes Ron Paul think silver is not going to go down during the next financial crisis just like it did in 2008. Or that it is not going to drop 60% or more like it has since the high in 2011. The people making the big money in gold and silver are the dealers, as it has always been. Tell people that purchased gold at $1842 in Feb 2012, that it was such a great buy and it is still a good buy at $1290, today. Fool’s Errand for sure.