Silver Train Keeps Chugging Along!

I've been investing since 1978 and have yet to see too many investments that are not volatile or unpredictable. Sure, cash and its equivalents are stable but lose buying power with inflation, and bonds will drop any time interest rates are raised. Stocks? Real estate? Yes, they all have their share of good and bad points as investments.

I do agree that the volatility in the PM markets can be extreme at times but that does not discourage those of us who regularly buy small amounts of PMs as inflation hedges. We are dollar cost averaging into our long-term positions, so have an average price that stretches over several years, if not longer. Anyone who bought gold this way over the past 10 years still has an average purchase price of around $850/oz.

I also agree that PMs are a useful component of an over-all investing plan that includes several other asset classes. I would not put more than 8-10% of my money into PMs but it is good to have that amount when the paper asset markets tank.