This morning I allocated a small amount of additional capital to my position in silver. Essentially, I view precious metals (and commodities generally) as a means of diversification - at the end of the day they do not generate any income. Given that at least part of the silver produced each year is used in various products, I have more confidence in silver than gold (of which very little is actually used for anything other than decorative or investment purposes).
I paid HK$261.3 per ounce (USD33.61). The silver is notional (paper) rather than physical as the transaction costs are lower and there are no storage costs. I realise that I a taking credit risk on the issuing bank.
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