‘Gold below $3000 is cheap’

That’s the view of Eric Strand, founder and portfolio manager at AuAG Funds.

While investors, looking for yield and incremental increases, are perennially disappointed in precious metals, in times of stress the arguments resurface in favour of gold and silver investing.

Strand believes that both gold and silver are cheap. The current gold to silver ratio (the gold price divided by the silver price) is 82:1, and he says this should normally be 19:1. In a secular bull market in precious metals the ratio should move to at least 30:1, which would be represented by a relatively larger move up in silver.

Strand says if gold does move up to $3,000, a level he says turns gold from being cheap to fairly priced, silver would climb to $100 an ounce making it the smarter choice of investment.

Any opinion, news, research, analysis, or other information does not constitute investment or trading advice. 

 

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