Canvest Panelists Favor Physical Silver

The Canadian Investor Conference, held from June 1 to 2 in Vancouver, featured a number of interesting panels, but for silver bugs, the sure standout was the Gold & Silver panel.

Featuring Mike Maloney of GoldSilver.com, Dundee Capital Markets’ Chantelle Schieven, Peter Spina of GoldSeek.com and SilverSeek.com and Ed Steer of GATA and Casey Research, the 30-minute session revealed just how appealing silver — specifically, physical silver — is to industry heavyweights.

Physical silver first came to the fore with moderator Rob Levy’s initial question: why are gold and silver attractive investments? Spina responded that with both metals currently going through a period of consolidation, “it is an incredible opportunity [to buy] metals at a great discount, especially silver.”

More panelists jumped on the physical silver train when Levy asked, “how do you play between the [precious metals] markets?” Or, put more simply, when is it better to buy silver over gold or vice versa.

For his part, Steer said that he would tell those looking to spend under $5,000 to buy silver, commenting, “as far as I’m concerned, silver is the most undervalued of all the precious metals.” Continuing, he said he would advise those with more to spend “to break it up” between the two metals, though personally he would buy all silver.

Maloney noted that he buys “according to the gold/silver ratio,” stating that at the current levels he puts 80 or 90 percent of his cash in silver and 10 or 20 percent in gold. “The opportunity lies in being a contrarian,” he explained. Similarly, Spina said that the current ratio is “an excellent opportunity,” though he cautioned that silver can “outperform on the downside and the upside, so it’s a higher-risk precious metal.”

Most revealing, however, was Levy’s last question. “I’m asking you to pick a winner between gold and silver, is it physical or is it an equity,” he said. Here’s what the panelists said:

• Steer: Physical silver “if you’ve never invested before.” He added, “if you’re going to buy stocks, I’d recommend you put it in a mutual fund.” 
• Maloney: “[Hard] silver. That was simple.”
• Schieven: “Gold bullion” due to silver’s volatility.
• Spina: “If you’re not in the market yet, I would first suggest getting your physical portfolio in silver,” he said, also noting that “if you’re looking at mining companies, it depends on your risk profile.”

Based on those comments, it seems clear that physical silver is the place to be, particularly for investors who are just starting out. Definitely some food for thought as the summer — traditionally a time when the metal’s price is low — gets started.

Stay tuned for a video interview with Steer. 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Related reading: 

Seasonally Weak Gold Could Get Worse Before Getting Better: Martin Murenbeeld

The Gold/Silver Price Ratio is Out of Whack — What’s Next?