What Now for Precious Metals?

Gold still glows, but even after a selloff, silver looks pricey.

Are precious metals losing their appeal or simply staggering after a stunning climb to the top of the investment heap? The surprise answer: It's a mixed bag.

Both gold and silver, derided by many experts as “extremist” investments less than a decade ago, had been on a tear. But when the price of silver briefly approached $50 an ounce in late April, worries about rampant speculation prompted U.S. commodities exchanges to require traders to put up more cash, raising the cost of buying the metal. That triggered a vicious selloff in early May that slashed silver’s price by 30% in just one week.

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Kathy Kristof
Contributing Editor, Kiplinger's Personal Finance
Kristof, editor of SideHusl.com, is an award-winning financial journalist, who writes regularly for Kiplinger's Personal Finance and CBS MoneyWatch. She's the author of Investing 101, Taming the Tuition Tiger and Kathy Kristof's Complete Book of Dollars and Sense. But perhaps her biggest claim to fame is that she was once a Jeopardy question: Kathy Kristof replaced what famous personal finance columnist, who died in 1991? Answer: Sylvia Porter.