Russia is one of the world’s top producers of gold.Precious metals prices, such as gold and silver, have spiked after Russia declared war on Ukraine.Investors should brace for more volatility ahead as Russia is one of the world’s top producers of gold. Any western sanctions against Russia will stiffen the global supply.To give you a more clearer picture, we reached out to Vijay Bhambwani, editor of the Fast Profits Daily video newsletter, and Weekly Cash Alerts at Equitymaster, for his views on the rising geopolitical concerns and what investors should own now – Gold or Silver.For many years now, Vijay has profitably traded commodities using his home-grown trading system. He has been an active trader since 1986.Read on for a very insightful interview…Equitymaster – Your views on the price of Gold in recent months…and where do you think it is headed?Vijay – Bullion is headed higher. The price target I had given of Rs 65,000/10 gm for gold by 31 December 2022 still stands, the time frame may extend by 2 quarters or so.This is because of the US mid-term elections later this year. Till then the US dollar will appreciate and bullion will be suppressed.Equitymaster – What’s your take on the price of silver?Vijay – I’m bullish on silver as well, maybe a bit more so than gold. My price target of Rs 85,000/kg by 31 December 2022 remains in place. Here again the time frame may get extended a bit due to the US elections.Equitymaster – If you had to pick one of the two, gold or silver, which one would you pick? Why?Vijay – Personally I am more inclined towards silver because it has uses in solar power, 5G mobile technology, electric vehicles (EVs), and the usual store of value.Silver has therefore an industrial edge over gold. Up to half a century ago silver was a poor cousin of gold. That is changing with technological innovation.I have recorded a video specifically on this.Equitymaster – When buying gold or silver in ETF form, what should one keep in mind?Vijay – I would like to buy a regular exchange-traded fund (ETF) over a fund of funds (FoFs). FoFs may have higher expense ratios which mean my take home profits are lower.Even in an ETF, I would look at the expense ratio, the fund manager’s track record and the pedigree of the promoter of the scheme.Equitymaster – And when buying gold or silver in physical form…Vijay – Buying from banks is prohibitively expense. Banks can’t buy back from you. So you have to go to your jeweler who buys at a discount because he will melt it to take off the bank’s logo.Buying from a wholesaler or a refiner makes more sense. The buy/sell spread is narrow. Check for purity of your purchases, get it electronically tested and check for hallmarking on the bullion itself.I have recorded detailed videos on how to buy gold cheap which is available here – My Secret for Buying Gold Cheap.And to know how to safeguard your purchases from conmen and cheats, watch this video – Don’t Get Cheated While Buying Gold.Equitymaster – Please can you recommend any blog or podcast that gold and silver investors to listen to keep track of the bullion market…Vijay – www.Kitco.com is a good resource for reading articles from a variety of people.Equitymaster – How does the Ukraine war change anything?Vijay – This move will actually benefit bullion.Putin is an old school Russian. This section of Russians believe Mikhail Gorbachev was responsible for fracturing the Soviet Union. Putin has put on the mantle of a unifier of breakaway states.Something like Sardar Vallabhai Patel did in India. Putin will use force wherever needed. I wouldn’t be surprised if he sets eyes on Lithuania, Latvia, Estonia, and other Baltic states as well.That will unnerve financial markets. That means even more safe haven buying in bullion.So 2021 was not a great year for bullion buffs, but 2022 and 2023 promise to bring good cheer.Happy Investing!(This article is syndicated from Equitymaster.com)(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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