May 28, 2011 Bob Brinker's Advice on Silver

May 28, 2011....Bob Brinker first recommended silver as an alternative to gold for hedging against the dollar in  November, 2010,  on Moneytalk:


BUYING GOLD FOR HEDGE AGAINST DECLINING DOLLAR...Bob Brinker said: "Hedging the portfolio against decline in foreign exchange, and there is a way to do that. It is a speculation, but there is a way to do it. And that is to put some GLD, the Exchange Traded Fund for gold in your portfolio, a few percentage point perhaps, if you elect to do this. And that will give you a precious metal in the name of gold bullion-hedge in your portfolio against the dollar.

BUYING SILVER AS HEDGE...Brinker said: "As far as silver is concerned, I think it could be considered as an alternative form of hedging in a portfolio......The preferred way for those who wish to have a silver hedge in their portfolio would be the Exchange Traded Fund that holds the silver bullion -- that trades under the symbol SLV.....the Ishares Silver Trust. There is a derivatives investment in an Exchange Traded Fund which is under the ticker symbol DBS (futures ETF). If I were going to consider the possibility using a silver hedge, I think I'd be looking at owning the silver bullion." 

March 2011, Brinker said:   "I've made it very clear that I regard silver bullion as an alternate to using gold bullion for those that want to have a precious metals hedge. And I've said on this broadcast that I prefer the exchange-traded fund approach, rather than going out and buying severely marked up gold or silver coins. I think you should not be surprised if it turns out that what you've bought is only worth half of what you've paid for it if you turn around and sell it. I hope everybody heard what I just said....That's an incredible statement that I just made.....

.....But if you want to buy gold or silver, you do the exchange-traded fund. By doing that, you buy gold bullion backing the exchange-traded fund GLD for gold, or you buy silver bullion backing the exchange-traded fund SLV for silver. When I first mentioned the GLD shares on this broadcast years ago, they were trading in the 50's, believe it or not. I recommended that specifically for listeners that wanted to have a hedge on gold....I said that's the way to do it. Sometime ago, I also mentioned SLV when it was trading in the 20's for that same purpose - for those that want to have a hedge."