So this sideways/downwards spiral that silver seems to taking had me thinking a bit today. People are now mentioning the possibility of $20 silver - frustrating for those who got in at a higher price (me included but I'm hanging in there) but also an some stellar stacking opportunities that may present themselves.
My question is this. If both silver an gold tank down to say $20 and $1000 respectively which would you buy? This is still at a silver/gold ratio of 50/1 which is not too far off the recent mark.
I know this is a silver forum and the upside for silver is greater - but gold is less volatile as well.
Your thoughts please
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im 75% gold and 25% silver. Gold is much easier to store, doesn't tarnish, and yes, It is a lot less volatile. I would continue buying both silver and gold. Probably a bit more silver since it has industrial uses.
One gold coin cost 1000 bucks = to 50 silver coins. It will be easier for silver to double because we know the fundamentals and silver has been $48 in the recent past. Gold still has not broken the $2000 level. I would go with silver but just like Harley we all have that ratio which feels good to us. I falling in with Brother John and letting it all ride on silver.
Already sold any gold and palladium we had and we're all in silver. If you've run out of space to store silver then buy some gold. LOL. Why is it frustrating, unless you spent too much fiat on silver in the forties and have to sell early to make ends meet? Otherwise, you haven't lost anything. $20 silver would be a gift that should make you feel better about any purchases in the $40s but I don't think we'll see physical going for that price.
If gold got smacked to 1000, based on previous beatdowns I would think silver would go even lower - pushing the g/s ratio high.
Hypothetically, if gold is 1000 and silver is 20: I would take a little from column A and a lot from colomn B.
However, I don't see gold dropping 500+ bucks on the other hand I do think we might see a 5 dollar drop in silver. If that happens, I would love it as a stacking opportunity and I don't think that kind of price would hang around that area very long. Furthermore, I would see that as a sign silver is about to take off big time to the upside.
At those prices i would have to buy mostly gold and a little silver.
I'd buy entirely based on the gold silver ratio.
Above 40 - nothing buy silver.
Sometime between now and the time my kids are teenagers, I think the gold silver ratio will hit 30, 20, maybe 10 or 1.
Then and only then will I swap my fiat for gold.
That said, if/when the gold:silver ratio hit about 40:1 I wouldn't rule out swapping some silver for gold.
I have been buying Gold maple leafs lately because
1) I have a big pile of silver already
2) I think it is good to diversify, Gold - Silver - Mining stocks, etc
3) I can't carry all my silver because it weighs too much but I could carry a bunch of gold if I had to bug out (dollar amount wise that is, more bang for the buck per grams of weight)
4) Gold does not seem to take the huge beat downs that silver does and so I watch Gold mostly now since I own some now I (Gold is less depressing to watch than silver)
5) Gold coins are absolutely awesome to look at and hold in your hand (not that silver coins are not)
That about all the reason I can think of for now why I am buying mostly Gold now
if those prices were met i would buy, and i would buy mostly gold as i dont have any at the moment
I would actually buy some gold. I don't have very much of it and would like more. At $1,000 an ounce, you bet I would!
(06-29-2012 04:25 PM)Honey Wrote: [ -> ]I would actually buy some gold. I don't have very much of it and would like more. At $1,000 an ounce, you bet I would!
Silver coins sure are pretty but, for some reason solid Gold coins are just stunning to look at and hold in your hand
I guess that's why man is so facinated with gold
I have to agree! I woud like to get more, but have to get over my mental block. I bought my first gold at around $420.00 an ounce and could really kick myself for not getting more. Actually, I couldn't really afford more back then. I have been with silver lately and now there is a little "bug" in the back of my brain that says.."pick up more gold". It may be just my addition to coins kicking in.
I love gold coins and they are sure beautiful..
(06-29-2012 04:42 PM)Honey Wrote: [ -> ]I have to agree! I woud like to get more, but have to get over my mental block. I bought my first gold at around $420.00 an ounce and could really kick myself for not getting more. Actually, I couldn't really afford more back then. I have been with silver lately and now there is a little "bug" in the back of my brain that says.."pick up more gold". It may be just my addition to coins kicking in.
I love gold coins and they are sure beautiful..
I think you are right on target. I believe you should have both, but mostly silver. But this pull back in gold is a much more rare event then the constant silver pull backs. Gold takes a lot more to control. I just recently doubled my gold position when gold went to the low $1500's. I was very comfortable making that purchase, although it might even go a little lower short term. However i believe it will finish this year a lot higher than that. Good luck in what ever you choose to do, but don't let anything i said sway you because i really don't know anything, i just go by my gut.
(06-30-2012 07:24 AM)dave606 Wrote: [ -> ] (06-29-2012 04:42 PM)Honey Wrote: [ -> ]I have to agree! I woud like to get more, but have to get over my mental block. I bought my first gold at around $420.00 an ounce and could really kick myself for not getting more. Actually, I couldn't really afford more back then. I have been with silver lately and now there is a little "bug" in the back of my brain that says.."pick up more gold". It may be just my addition to coins kicking in.
I love gold coins and they are sure beautiful..
I think you are right on target. I believe you should have both, but mostly silver. But this pull back in gold is a much more rare event then the constant silver pull backs. Gold takes a lot more to control. I just recently doubled my gold position when gold went to the low $1500's. I was very comfortable making that purchase, although it might even go a little lower short term. However i believe it will finish this year a lot higher than that. Good luck in what ever you choose to do, but don't let anything i said sway you because i really don't know anything, i just go by my gut.
Hey Dave606, Good to hear from you again!
Yeah.. I am still just in the "thinking" mode about it.
H