Gold vs Silver: Which is the Best Investment?

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Sat, Jun 18, 2011 - 11:12pm
mdcromer
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I'm starting from a baseline

I'm starting from a baseline of zero, just started buying a month ago. Right now I am planning to spend about 75 / 25 gold to silver as money becomes available.

For gold I am buying modern and old bullion coins, whatever I can get a deal on / for silver I am buying all 90%.

I'm not sure if FOFOA is right about gold versus silver -- kind of doubt it -- but he is the one who convinced me that dollar hyperinflation is going to happen, which probably influences my PM allocation.

Sun, Jun 19, 2011 - 11:25am
Seb
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When you state a ratio

When you state a ratio between owned silver and owned gold, are you referring at a mass ratio (ounces of silver vs. ounces of gold) or at a price ratio (in US dollars or in another currency) i.e. how much money have you converted in each metal?

Sun, Jun 19, 2011 - 2:18pm (Reply to #23)
Eric Original
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$$ ratio

I think almost universally, people are talking about how much money in one vs how much money in the other.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Sun, Jun 19, 2011 - 2:32pm
PaPaSpeed
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As long as the silver/gold

As long as the silver/gold ratio remains above 20/1, I'm a buyer of silver. I'm a firm believer that the S/G ratio should move towards that level. Currently the ratio is about 42/1, so it's a no brainer to me.. Once it does move to 20/1, I will be a gold buyer or trade silver for gold.

You really can't go wrong with either, that's the beauty of PM's, but it's silver for me at this point in time. Good luck.

Here's a little article on the subject. https://www.wealthwire.com/news/metals/1091 

Sun, Jun 19, 2011 - 4:41pm (Reply to #25)
R man J
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Which one is better?

Both!

Right now, gold is more popular than silver, so buy more silver than gold. And when silver is hyped, buy more gold. But always buy both. This strategy would have saved me close to 10% in purchase price. Live and learn.

Mon, Jun 20, 2011 - 11:20pm
caramel
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depends on your foundation -

depends on your foundation - I'm a gold bug & believe it is the ultimate preservor of wealth coupled with all the signs around us that gold will have a major if not the major role in the world's next monetary system. That's my starting ground & admit my bias.

Silver I view as a physical metal that will meet purchasing needs, if necessary, when SHTF. If I don't have to sell any, great.

From an investment standpoint, depends on timeline. Silver may very well outperform gold at various intervals. But I don't play that game. Purchased gold, then silver and I will not be doing any trading from silver to gold at a later time. Some will make very good money and/or add additional gold to their physical portfolio by playing the GSR trade, but that's just not my stick. One day, gold will be nowhere to be found. Silver may also be nowhere to be found but unknown how the next monetary system will 'view' silver. 

There's other commodities in the past that when under tight supply, the price can shoot up in the thousands. Don't know, it might. Or it might not. If it does, holders of silver physical will be happy. If say the price ends up at a lower $ figure, say $50 at the end of the day, then I suggest one reasseses their purpose - is it to make paper dollars or to protect oneself during the transition to the next monetary system? However, as I stated, in the meantime, at various intervals, silver could not only outperform gold but rise upwards in values only known to few.

So to answer the question - my position is gold is the ultimate protection and investment against currency collapse and silver a distance second.

Tue, Jun 21, 2011 - 4:59pm
Laurichmusic
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Start with Silver

I would start with Silver while the price is still low. Buy enough so that your family can survive for at least six months. Then start buying Gold. Gold is for preserving your wealth and Silver can help your survive and has the possibility of making you extremely rich. I'm gonna keep on buying Silver until the Gold to Silver ratio lowers to around 1 to 30 then start trading some of my Silver for Gold. When purchasing Silver you must think long term.

Tue, Jun 21, 2011 - 7:55pm (Reply to #3)
Jake
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Own Both - It's Good For Your Health

Prize Fighter wrote:

Jake Blues: What kind of music do you all play?
Lady Barkeep: Oh, we have both kinds. Country AND western!

Like any investment portfolio I look at PMs with gold being a conservative play and silver as aggressive. Both are fine but there is no one right answer for anyone.

I believe both are important to own. There just isn't any way to predict how the government will treat these two metals in the future. Therefore, I look at it as kind of a hedge against the unknown. A good example is The UK. They charge VAT for silver, but not for gold. Could insanity such as this come to the US?...Most definitely. Could these sleezeballs take your gold and leave your junk silver?...Of course. There just is not any way to know. So own both, it's good for your health.

PRIZE FIGHTER: This One's For You!:

Classic Movie Line #5
Your Silver--I Want to Buy it! Sell Me Your Silver!
Tue, Jun 21, 2011 - 8:24pm
Prize Fighter
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Jake, that's it!  Forgot it

Jake, that's it! Forgot it was Elwood giving the line. I've watched and laughed 100 times at that movie with my father. Good stuff.

Tue, Jun 21, 2011 - 9:46pm (Reply to #30)
Jake
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I Will Not Take Your Filthy, Stolen Money!

Prize Fighter wrote:

Jake, that's it! Forgot it was Elwood giving the line. I've watched and laughed 100 times at that movie with my father. Good stuff.

Need a Little Churchin' up?

The Blues Brothers (1980) - Filthy Mouths & Bad Attitudes Scene (1/9) | Movieclips
Your Silver--I Want to Buy it! Sell Me Your Silver!
Sat, Jun 25, 2011 - 9:37am (Reply to #24)
Seb
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Ratio dependent on total value?

Would you consider a different ratio between owned silver and gold, if you have just a little of both, compared to the situation in which you have somewhat greater amounts of each?

For instance, something like this:

- 1,000 USD - only silver

- 10,000 USD - 70% of money in silver, 30% of money in gold

- 30,000 USD - 50% of money in silver, 50% of money in gold

- 100,000 USD - 30% of money in silver, 70% of money in gold

and so on.

Sat, Jun 25, 2011 - 10:11am (Reply to #32)
murphy
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ratio

fwiw, For my assets devoted to gold/silver. I have 50% in mining stocks of both, producers mainly, and 50% in physical.

In this way when the miners are down the physical may hold up and vice a versa. I am not sure if I believe the bankers long physical / short stocks theory, but holding both is less volatile with more up side potential.

Of the 50% physical I was 60% silver and 40% gold. Since silver has been the out performer for the last two years, my ratio is even greater presently, but I am letting it run.

Sat, Jun 25, 2011 - 10:52am
Bull
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AU vs AG

I'd trade my AG in a second for AU because of portability and price stability. That said; my bets are on AG for a moonshot!

Boom Badda Boom!

Bull
Sat, Jun 25, 2011 - 11:57am
Eric Original
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No right answer

It all depends on you. For me, I'm a gold guy. So if I'm just starting out, I'd get some physical gold and leave it at that. Silver is more for gambling, and I don't like to gamble.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Sat, Jun 25, 2011 - 10:32pm
Shawk Nixon
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Gold vs. Silver

I think its a tough question to answer because it depends on what happens in the future. If we have heavy inflation but somehow keep the currency in tact, then silver will likely outperform since it is under-owned and undervalued. The liquidity will move into silver like it did in September. In this case, the scarcity of the metal and high GSR will benefit.

But if we have a full out hyperinflationary depression and a currency collapse then gold will perform better because it would likely be used in some fashion for a new monetary system. Either a very high upward re-pricing based some IMF SDR scenario that Jim Rickards tends to favor (see KWN interview this weekend)

...or the FOFOA scenario where gold is not fixed as a gold standard but rather floats against all currencies in a physical market (not like today where has price discovery is based on leverage contracts). In this scenario gold would could end up incredibly valuable. You'd have t0 read a few hundred hours of FOFOA to fully understand the impact of this scenario.

For me, I consider gold as savings and therefore I prefer not to own a lot of silver due to thin trading, and wild volatility. Though it is excellent for paper trading. The big moves we saw the last 6 months is exactly what keeps big money players from messing with silver. The large stock of gold is an advantage as a wealth reserve. That is why central banks and the big money players own gold and not silver.

Mon, Jul 11, 2011 - 11:50pm
Wed, Mar 21, 2012 - 2:55am
Silver Rock
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Talking Metals with David Morgan

Here is the link for this article source, the guru speaks.......

https://www.goldonlinestore.com/html/preciousmetalnews.html

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