Gold vs. Silver

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#1 Wed, Jul 6, 2011 - 7:35pm
StartThePurple
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Gold vs. Silver

Say you had $$$$ to spend on PMs, would you purchase all gold, all silver or a mixture of the two? Is there a particular gold/silver ratio folks recommend? I’d be interested to hear people’s thoughts.

This is a buy and hold scenario as an inflation hedge/wealth preservation tactic (vs. holding FRNs).

Thanks!

Edited by: StartThePurple on Nov 8, 2014 - 5:06am
Wed, Jul 6, 2011 - 7:59pm
Dr Durden
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https://www.tfmetalsreport.com

https://www.tfmetalsreport.com/comment/496672

For a store of wealth, then gold. It's the only world currency detached from counterparty risk. 

It seems a strategy many are using now is stacking silver while it's "cheap" then spending it on gold at certain gold:silver ratio (say 1:30 or so).

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Wed, Jul 6, 2011 - 8:11pm
Eric Original
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2:1 gold for me

I'm currently running 2:1 gold. That's just me though. I admit it. I'm biased. I'm a gold bug. Not a huge believer in silver for the long haul. I know there are plenty of true blue silver believers out there, and we've had this discussion before. In the end we are all on the same team and I wish everybody the best. But for me, it's mostly gold right now, and heading for pretty much all gold in the long run.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Wed, Jul 6, 2011 - 8:13pm (Reply to #2)
pourty
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what's your appetite for risk?

DISCLAIMER: I'm not an expert. I'm not even close to an expert.

That said, my own personal view is that Silver tends to be a risky investment with wide swings up and down. It's got definite potential for massive upside. It's also got definite potential to be a major loss. I believe the fundamentals are sound and that the price will go higher, but that's my opinion based on nothing more than reading a bunch of analysis on the internet. 

Gold, on the other hand, seems a much more stable investment which will hold value more securely over time. It will have it's up and downs as well, but they seem not to be so extreme. James Turk's discussion showing the price of oil in terms of Gold over time is quite convincing.

I'm in my late 30's and still have some stomach for risk. I have 2/3 silver and 1/3 gold. As a previous poster noted, I'm intending to exchange the silver for gold when it reaches a gold/silver ratio below 1:20. It may never happen and I'll have a bunch of shiny silver coins.

I've seen other investors say they are doing 90% silver, 10% gold. 

I don't think you can go wrong with either, but if you have a low appetite for risk, buy gold, IMO.

Wed, Jul 6, 2011 - 8:28pm
Dr Durden
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If you want to make an

If you want to make an investment, you want to be part of or own the means of production of a good or service. So, invest in a small business, buy a widget machine or sell capital resources.

G&S are not investments, they're money. Never buy them thinking you're going make money on them. It's a speculative asset. 

Sorry, had to say it. 

I'm 100:1 silver:gold at the moment and I hope they don't go up for 5-10 years. I need more time. I pray everyday spot goes to $0 on both. Why? Because I'm not investing, I'm merely transferring my personal wealth and labor into a future free of debt and obligation.

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Thu, Jul 7, 2011 - 12:25am
SilverFocker
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Gold and 90% silver

I have been slowly going into gold 1/4 to 1/2 oz at a time, I still buy silver but that focus has shifted into 90% coins, I will still buy ASE's but it will not be nothing to the past buying I was doing.

I like to have a wide range of PM's, but Money to invest against inflation would be to gold. We are only insuring ourselves against the worst case scenario in PM's.

Thu, Jul 7, 2011 - 1:23am
donpaulo
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AU/AG

I am only buying silver at this point

the ratios favor buying silver IMHO

The medium range goal would be to swap my silver into gold when ratios reach values where I can realize gains on my holding.

I bought some gold early on and still have it but considering the massive potential returns I have had on my silver I regret having bought gold when I could have had more silver.

I think it depends not only on your risk profile but on your age and your exit strategy.

I am in my 40's and plan to hold PM for up to 20 more years or more

So I can wait for ratios to move in my favor or cash out of my silver where even after the pullback I am still seeing potential returns of over 100%

I am buying more silver in about a week too

Thu, Jul 7, 2011 - 1:56am
Insight
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I have 62.3% silver and 37.7% gold (based on my fiat dollars

spent to buy.) This amounts to about 18+ % in physical metals. 

When I first started buying from CMI, the broker gave me some broad outlines in terms of the stance of various mixes, for what it's worth:

70S-30G aggressive

60S-40G assertive

60g-40Silver very conservative.

My plan was to add gold and bump the overall % I own vs all the money we have from 18+ to 20-21%. (This does not including mining shares that I own.) However, it seems gold may be taking off, so I may not be able to do it. I hate chasing busses.

"Optimist look at donut; pessimist look at hole."--Charlie Chan (That's my dog SLICKER, not Nipper)
Thu, Jul 7, 2011 - 2:25am
silverbleve
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Silver only

Just sweet silver for me. I always try to put sets together to take advantage of the numismatic value. A set of proof eagles or Franklin halves for example. The only gold I have is ase packaging, like the 1993 phili set with 3 gold coins and a silver eagle. I like to keep original packaging from the mint whenever I can, but that's just me. I have much respect for the goldbugs, but believe silver will continue to outperform gold for at least ten years. I use silver as a savings account, and plan on holding physical until long after they are valued in usd at all.

Sat, Jul 9, 2011 - 4:17pm
silversalmon
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2/3 gold 1/3 silver ( James Turk)

I base my recommendation James Turk, a credible figure. So I believe 2/3 gold and 1/3 silver is a good safe bet. I would even do 3/4 gold 1/4 silver. If you're the more aggressive type, reverse the ratio 2/3 silver 1/3 gold etc. 

Sat, Jul 16, 2011 - 3:58am
CharlesT4
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Silver bug

I just did a rough calculation based off of spot and I own about $21 of silver for every $1 of gold. I'm on the verge of selling that gold position too. I see gold as a stable store of wealth, where as I see silver as highly undervalued with huge potential for wealth building. 

Sat, Jul 16, 2011 - 11:29am
lottiedah
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Platinum in the Stack

I'd also look into Platinum. Seems big money likes it and the local dealers seem to have difficulty getting it. Do your own research, of course, but it seems to be another favored metal that rarely gets press. That is what piques my interest.

Any other thoughts on plat, stackers?

Sat, Jul 16, 2011 - 2:45pm
lottiedah
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Gold/Silver and Other Metals

Wondering about a ratio in the metals (personal stack) that would mirror the Commodities Index. Any thoughts?

Sun, Jul 17, 2011 - 1:51am
Gil
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My personal physical stash is

My personal physical stash is about 65% gold to 35% silver measured in USD, the silver being all 90%. The numbers weren't planned at all, it just worked out that way. I bought all gold first, then realized that silver had tremendous upside potential and 90% quarters and dimes make great barter coins for getting through a currency crisis/SHTF scenario.

In the shop we're at very close to the same percentages for gold (65%) and silver (35%) when measured in USD, but on the silver side we are flush with silver bullion coins, rounds and bars.

I personally don't own any platinum nor do we have any in the shop at the moment. I noticed this week that Pt and Pd prices did not seem to be riding the wave with gold and silver. Personally, physical Pt does not sing to me like gold and silver do.

I like the notion of acquiring silver while the silver:gold ratio is high and later trading some silver for gold when the ratio drops, as described in comments above. I also heard Bill Haynes talking about the same thing on the KWN Weekly Metals Wrap. It makes sense to me.

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