Gold vs Silver: Which is the Best Investment?

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#1 Tue, Jun 14, 2011 - 7:53pm
PastTense
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Gold vs Silver: Which is the Best Investment?

Any thoughts?

Edited by: PastTense on Nov 8, 2014 - 5:31am
Tue, Jun 14, 2011 - 8:18pm
1913
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I'm sure there are tons of

I'm sure there are tons of thoughts - and they all start with what your specific definition of "best investment" is.

Do you mean highest upside? Least risk? Most history?

Silver seems like the risky option to me, and gold as the safe one. If you are hoping to make it big with the inevitable correction, silver probably has the highest upside. If you, like me, are more interested in preserving your wealth, gold will be the safe haven asset of giants (term shamelessly stolen from FOFOA) - so it will be inevitably be valuable.

One of many great FOFOA pieces to help the conversation.

Tue, Jun 14, 2011 - 8:21pm
Prize Fighter
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Jake Blues: What kind of

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. Age, assets, liabilities, dependents, etc all weigh on each of us differently. So, I put my parents into gold but I'm in silver mostly.

Short answer is, unless you really get it and are willing to withstand the wild silver swings still to come , buy gold. 

Tue, Jun 14, 2011 - 8:42pm (Reply to #2)
matrixsentry
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Gold is for investing

1913 wrote:

I'm sure there are tons of thoughts - and they all start with what your specific definition of "best investment" is.

Do you mean highest upside? Least risk? Most history?

Silver seems like the risky option to me, and gold as the safe one. If you are hoping to make it big with the inevitable correction, silver probably has the highest upside. If you, like me, are more interested in preserving your wealth, gold will be the safe haven asset of giants (term shamelessly stolen from FOFOA) - so it will be inevitably be valuable.

One of many great FOFOA pieces to help the conversation.

I invest in physical gold and trade silver. Silver lends itself nicely to trading because of the volatility and effectively offers leverage compared to physical gold. FOFOA is essential reading IMO and I do believe gold will be the future premier reserve asset.

Matrixsentry
Tue, Jun 14, 2011 - 9:58pm
caramel
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reality is central banks are

reality is central banks are hoarding gold. If they followed suit or more likely, if a country backed their currency with silver, ie. Mexico, I'd consider changing my stance. Not counting on it. Gold is the premier wealth asset. Silver is 2nd.

Aim not to sell any physical silver if SHTF but will if necessary.

Tue, Jun 14, 2011 - 10:10pm
Seacap81
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I like Silver over Gold for

I like Silver over Gold for many reasons, but chief among then is Silver's industrial use and they are many. I believe the upside to Silver is enormous as is Gold's, but Silver is the money of the people and when the masses begin to arouse and begin to put their soon to be worthless dollars in a hard asset they will look to the more affordable hard money asset. Sam the truck driver and Annie the waitress can buy ounces of Silver on a monthly basis, can't say the same for Gold. This demand among us little people we effectively drive Silver sharply higher in the months ahead. This is just one man's opinion....and like noses, everybody has one. 

Tue, Jun 14, 2011 - 10:56pm (Reply to #6)
needadeel
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Strike gold when the GSR gets hot!

Although I am buying gold right now, I would say that the GSR at about 43 looks quite favorable for buying silver. When silver was shooting for 50, the GSR was about 32; that would have been a great time to convert your silver to gold. I loooove silver, but I would change almost all of it to gold if the GSR hits 15 or lower.

Wed, Jun 15, 2011 - 12:18am (Reply to #5)
SilverFocker
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I have been doing a 70%

I have been doing a 70% silver and 30% gold, for me it makes sense when this monster comes crashing down.

Wed, Jun 15, 2011 - 12:27am
Eric Original
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My Heart Belongs to Gold.

My Heart Belongs to Gold. Currently running about 68% Gold, 32% Silver.

Current GSR of 43 ish feels like no man's land to me. Not too high, not too low. In no hurry to swap a lot right now either way, but in the long run most of my silver says "Bye Bye".

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Wed, Jun 15, 2011 - 11:52am
Urban Roman
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22 Kt gold is nice

Test Image, heh heh

I like the way it shines.

Wed, Jun 15, 2011 - 12:27pm
Sockeye
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For physical purchase silver

For physical purchase silver makes more sense. If you are putting it away for long term you will make a bigger profit on silver. It will also be easier to sell or convert. gold will be wicked expensive and more difficult to convert.

I am almost always wrong. But the fun in life is those few times when I am right.
Wed, Jun 15, 2011 - 12:30pm
Sockeye
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well if you are ultra rich

well if you are ultra rich then skip physical silver as it will be too much bulk or weight. stick to gold. you really don't want a metric ton of silver under your bed.

I am almost always wrong. But the fun in life is those few times when I am right.
Wed, Jun 15, 2011 - 12:59pm
1913
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Stowability

There is a huge difference in handling costs between the two, as well. If you plop down $25k today in Silver, that takes up a bunch of space and is heavy - where do you store it all? (Disclaimer: I don't trust a safe deposit box at a bank, and I don't want a safe to store things - a robber comes and "forces" you to open) Gold, however, would be a small sleeve of coins.

I don't think a barter economy will last more than a few months at most if it happens at all, so I have enough silver to cover 6 months of expenses without touching gold (in addition to all the other things already stored - food, water, etc.). I don't think the debate should deteriorate into a good vs. bad, because both will accomplish the goal of wealth preservation.

As for the GSR, there is lots of talk about trading silver in for gold at a certain level, but not much talk of long term holders trading in gold for silver at the opposite end. Gold is the ultimate safe haven.

Wed, Jun 15, 2011 - 4:08pm
silversalmon
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Gold is Money and nothing else

Not an investment: GOLD IS MONEY AND NOTHING ELSE. It's savings, there's no cash flow, therefore not an investment. You're watching the dollar and other currencies debase, not the Gold prices rising. learn to think in terms of value/wealth storage for ounces of gold. The answer to your query is in there somewhere.

Fri, Jun 17, 2011 - 12:33am
SilverFocker
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I love Pawn Shops

Keeping most of my PM purchases under the radar I frequent several pawn shops and have gotten some good deals doing this, I always buy under or at spot depending on what is available.

Today was a good day, bought 2 1/4 oz eagles for $352.00 each. Times are getting tough out there and people are selling their souls to live day to day.

Fri, Jun 17, 2011 - 2:17am (Reply to #15)
silvernomics
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There's about six billion

There's about six billion (minimum) ounces of refined gold above ground. There's about two billion (maximum) ounces of refined silver.

At $1500 gold and $35 silver, that's approaching $10 trillion ($10,000 billion) of gold to absorb demand, and $70 billion of silver.

Worth reading that last sentence again. And again.

The ratio of gold to silver in existence is what I would call a latent market fact. It has come about over the course of a hundred years as silver has been systematically consumed by industry. Due to demonetisation over that period it's not a market fact that has been priced in. The trend has been felt, thus far, chiefly in the decimation of vast stockpiles of unemployed silver coinage the bullion content of which was the product of thousands of years worth of mining.

I think there will come a point, when the Comex pricing mechanism snaps and demand rises beyond the absorbable point for recent price equilibrium, where silver is going to re-price for that hundred years worth of consumed supply.

In other words, a silver volcano will be unleashed.

Just my opinion.

Fri, Jun 17, 2011 - 2:35am
Captain Silver
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Silver it is

I have to say I'm partial to silver primarily due to the fundamentals, but I must admit I like roller coasters and it is wild market. Gold is a great tool for preserving wealth, but silver has a great deal of upside potential as an investment in addtion to being a store of wealth. Now one should be diversified in the PMs to help soften the volatile nature of the silver market, but long term the industrial demand for silver should increase and supplies are very tight.

I'm holding gold and silver at a roughly 1:20 ratio, but I'm trading paper silver, speculating on some silver stocks and plan to accumulate consideriably more physical silver over time.

Our monetary system has been hijacked by morons! Abandon ship!!!!
Sat, Jun 18, 2011 - 9:19am (Reply to #17)
Red Pill
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Both, in the appropriate

Both, in the appropriate ratio. I like 75% / 25% gold/silver, swapping a floating percentage back and forth as the ratio moves. I do it "no leverage physical" via BV.

I was lucky and caught close to the top of the silver spike (£29.00 GBP) as my own holdings ratio approached 50/50, and sold silver/bought gold (back to 75/25) then they raided silver but Gold in GBP actually went up a little bit, so I bought back in at £20.50, for a "profit" of just under 100 oz silver. 

lots of others were distraught about the silver slaying, I was rather pleased, as never mind the "price" its only about how many OZ you have, so getting more for no more paper is always nice.

I treat it like swapping silver to gold is like shouting "Bank" on "The weakest link" :) 

I can only show you the door.. Take the Red Pill #Occupy Money
Sat, Jun 18, 2011 - 1:59pm
Sockeye
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Red Pill I really admire

Red Pill

I really admire people who trade gold and silver back and forth making profits the way you describe. Nice move. 

I am almost always wrong. But the fun in life is those few times when I am right.
Sat, Jun 18, 2011 - 2:51pm (Reply to #19)
Red Pill
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Thanks, but I'm definitely

Thanks, but I'm definitely not an expert or anything (ie worth admiring like TF etc) and got super-lucky with the timing this time.

but it gives a little bit of interest in price direction without having to get involved in actual trading or leverage, while we wait for the long term appreciation.

I can only show you the door.. Take the Red Pill #Occupy Money
Sat, Jun 18, 2011 - 10:08pm (Reply to #20)
Prize Fighter
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Not luck...

Red Pill wrote:

...got super-lucky with the timing...

You know luck = preparation + opportunity. Congrats on your moves. You earned it!

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