So far this year, the Dow Jones Industrial Average is up 0.87%*. Not bad, but let’s take a look at how our gold holdings have done this year. Physical gold (coins and bullion) is up 6.59%**.

At $1240.30/ounce, gold is a bit pricey. Silver gives us a comparable hedging strategy, but at a significantly lower price, $17.79/ounce***. Year to date, physical silver (coins and bullion) is up 8.21%***.

If you will recall, both Gold and Silver had a terrific first half of the year last year, before pulling back. We don’t how things will play out this year, but at this point, it appears we are seeing the same set-up for 2017.

* Historical Quotes. Jan 3, 2017 and Feb 8, 2017 prices. Dow Jones Industrial Average: 19,881.76 and 20,054.34.
** Gold spot prices, APMEX. Jan 3, 2017 and Feb 8, 2017. $1163.60 and $1240.30.
*** Silver spot prices, APMEX. Jan 3, 2017 and Feb 8, 2017. $16.44 and $17.79.

These the opinions of John Buetow and not necessarily those of Cambridge, are for informational purposes only, and should not be construed as investment advice.