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<p>[QUOTE=&quot;medoraman, post: 1236520, member: 26302&quot;]I hear people say this, that gold is at an all time high but silver is not. I believe both are in nominal dollars if you agree that the Hunt&#039;s actions were an attempt to corner, and the price achieved was not a long term supply-demand price but a market aberration that lasted only a few days. To me silver peaked around $35 in 1980 absent that, so I say we are still in a nominal dollar high for long term demand.</p><p><br /></p><p>OP has points for silver, but there are equally strong points for gold. I was just talking to a chemist Saturday who works on circuit boards about how gold has made a very strong comeback on them due to anti-lead provisions. I am not saying gold has a lot of industrial demand, and am not a gold bug, but always remember there is just something weird with human emotions and gold, and gold is much rare than silver. I have always been a silver lover myself, my stockpile of PM attests to that, but I do not love it so much I would only invest in it for all of my PM purchases.</p><p><br /></p><p>In securities, there is alpha risk and beta risk. Alpha is the risk specific to a stock, like if there is a fire in that companies plant, or an Enron situation. Beta is market risk, meaning the whole market going up or down.&nbsp; Beta cannot be avoided much, but alpha risk should be blended away by holding multiple securities. I say the same should be done with PM, hold many of them on the chance one may go up or down disproportionately.</p><p><br /></p><p>To the OP, the reason to hold PM is not a doomsday scenario, but rather the more pedestrian reason of protecting versus currency devaluation. In a doomsday scenario you want farmland, seeds, bottled water, canned food and guns. ANy PM is worthless. For a more likely scenario of high inflation or dollar devaluation, PM can protect the real purchasing power of your portfolio.[/QUOTE]</p><p><br /></p>

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