Interview: ‘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 is 82, that is the gold price divided by the price of silver, and says that this should normally be a ratio of 60.
If, however, there is a bull market in precious metals the ratio could move to 30, 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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Explore the markets with our free course
Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this index strategy article, and try it out risk-free in your demo account.
Ready to trade indices?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Get fixed spreads from 1 point on FTSE 100
- Protect your capital with risk management tools
- Trade more 24-hour markets than any other provider – 26 in total
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
