ArticlesCharteris in the Press

Is everybody focusing on the wrong precious metal?

FE Article by senior reporter Abraham Darwyne. Article focuses on Silver.

Earlier in the year when the price of gold started to pick up, DMS Charteris Gold & Precious Metals manager Ian Williams told Trustnet that he believed silver had more room to run than gold, back when silver was trading at just $13 per ounce.

And even now he argues that silver still has more room to run and silver miners are poised to benefit disproportionately because for the last several years they have been cutting down their costs.

“At current levels some of the higher cost producers all of a sudden are quite profitable companies, and some of the lower cost producers are suddenly on 100 per cent profit margins,” he explained.

“We expect gold to take out $2,000, and silver to go even further. Say silver goes up to $40, some of the shares in our portfolio will potentially go up tenfold.”

Indeed, Williams said the environment for silver today is even more bullish than it was in 2011.

“The trigger point back then was [former Federal Reserve chair] Ben Bernanke starting quantitative easing, and all the investors piled into gold and silver,” he explained.

In 2011, the US Federal Reserve’s balance sheet went from $1trn to $4trn in six and a half years. And Williams contrasted this to today where “it’s gone from $4trn to $7trn in four months”

“And it’s scheduled to do a further $3trn at least by the end of the year, so their balance sheet is going from $4trn to $10trn in nine months,” he continued.

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Article first appeared on FE Trustnet’s website on 29 July 2020 (link opens a new page)