When is it the best time to buy precious metals?

Both gold and silver have stumbled in terms of price per ounce as the year draws to a close, especially on the heels of The Fed’s recent tapering plans announced for January. Gold’s price reached a six month low in December 2013, and silver hasn’t fared much better.

Sounds like a bad end to the year for the two precious metals, right? Well, it really depends on your perspective and position.

According to businessman and author Jim Rogers, Chairman of Rogers Holdings and Beeland Interests, Inc., investors should look at this as an opportunity, rather than as a negative trend.

When asked which of the two precious metals is the most opportunistic, Rogers actually leans toward silver.

The reason?Margins.

Gold is about 30-35% off from its previous high price, while silver is about 60% off its high. In other words, silver has more upside as compared to where it has been, and where many believe it will eventually get to (and exceed).

Rogers went as far as saying, “If [silver] goes down more, I hope I’m smart enough to buy.”

Rogers is clearly looking at this situation from a glass half full perspective. He already owns both gold and silver, so the down trend in price is not in his favor from a current investor perspective. But, as a potential investor in more gold and silver, the lower price creates a great opportunity.

We’ve said it before and we’ll say it again: gold and silver should be looked at as a long term investment strategy. If you are looking to get a quick return, precious metals are not your best bet, especially after the year they’ve had in 2013. But, if you are looking for a long term investment in a commodity that has shown a consistent return time and time again, then the current price of gold and silver should have you drooling.

2013 has seen both metals’ prices fall significantly, rise up a bit, then fall again. Looking at the past year, it is tough to evaluate either metal from an investment perspective and conclude that they are a safe buy. However, looking at both metals from the past 10, 20, 30 or more years, and seeing the returns they’ve yielded, it becomes clear that both metals are available at a bargain price currently.

First Time Gold and Silver Buyer's should read this.