Gray: Why gold, but not silver, is justified at these levels

ON ASSET ALLOCATION

Martin Gray of MAM Funds discusses why gold, but not silver, is justified at record levels.

The price of gold has become rather speculative over the past year or two, often rising or falling in a correlative manner with risk assets. A weak dollar, fears about global growth, and concerns over soaring debt levels have all supported the gold price and pushed it up to $1,540, while silver has also climbed to $41. As an alternative to currency, there have been plenty of reasons to justify the rise in the price of gold. Not so silver. Its use is principally as an industrial metal, but for some reason has attracted hordes of private investors and a bandwagon of speculators and h...