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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Interview: ‘Gold below $3000 is cheap’

That’s the view of Eric Strand, founder and portfolio manager at AuAG funds.

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While investors, looking for yield and incremental increases are perennially disappointed in precious metals, in times of stress the arguments resurface in favour of gold and silver investing. Strand believes that both gold and silver are cheap.

The current gold to silver ratio is 82, that is the gold price divided by the price of silver, and says that this should normally be a ratio of 60.

If, however, there is a bull market in precious metals the ratio could move to 30, which would be represented by a relatively larger move up in silver. Strand says if gold does move up to $3,000, a level he says turns gold from being cheap to fairly priced, silver would climb to $100 an ounce making it the smarter choice of investment.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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