FDR: In your June 13 article “Mish Buys a Basket of Miners” you said “gold is a far safer play than silver” can you tell us why ?
Mish: Silver is an industrial commodity that is used up. Gold has little industrial use. Silver can and does plunge more than gold in pullbacks. The latest plunge in silver was far greater than the corresponding plunge in gold. I do like silver at current prices, but one needs to be aware of high volatility in both directions.
FDR: In May of 2012 you wrote “I’m Swapping Some Gold for Silver“. Today silver close to $23 and was available below $20. Do you continue to swap more gold for silver?
Mish: I didn’t, but I may. The curious thing is I posted a belief for silver to fall back to the low $20s when it was close to $50. After it bounced twice in the mid-to-high $20s I changed my mind. I had it correct initially, but did not wait.
Bit by bit, I’m using this dip to add to my store of junk silver. 90% silver dimes and quarters.
I buy at APMEX, which has the best prices and service I’ve yet seen for small amounts of junk silver: