Lots of silver "stacking," not so much gold stacking

The gold/silver ratio thing is Edited: Language violation. Read the rules!Plain and simple. I don't know who told you what it is "supposed" to be or why that is good for your investing, but it's not. Different factors will affect prices differently for gold and silver. What their ratio is to each other is completely inconsequential to you making money in the long term.

 

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Nice post, and informative. Good Job. Stacking silver as an investment is wise, but do it like any other, namely; buy as inexpensively as you can. The Pandas and Birds have their place as novelty items, but not as a hedge against a currency devaluation.
I'm just an average guy, however I feel the economy is in for a nice run Edited. That means Silver will not soar for awhile. So hold it, feel it, and wait. If you need something to reassure you it will rise again, here is a thought. "Someday that $20 trillion must be paid back."

 

No reason to bring politics into this thread.

But...

1) The American economy is already very, very strong with incomes rising for all groups under the Obama administration. Unemployment is very low, at well below 5%. And stocks are at historic highs during the Obama Admin.
2) Unfortunately a strong Dollar and American economy lead to weaker precious metals, since most invest in them as a hedge against inflation.
3) No, the American national debt never does have to be paid back. Practically all countries run national debts, and as long as the U.S. government makes its payments on time, it can continue to run that debt as it has for hundreds of years.
4) The U.S. will continue to be the central economy of the world for some time, leading to other countries investing in American debt more than in any other sovereign debt.
5) It's hard to predict how the world economy will do over the next 100 years, and how precious metals will fit into that, but as the world population grows and becomes wealthier and wants more silver and gold, and as industrial uses grow, supplies will have trouble keeping up. This is why most predict gold and silver will continue to rise over the next hundred years.
6) That's why it's wise to have some silver and gold in your portfolio, but don't over do it.

 

Groan, I only expressed my opinion that ...pro-business, which results in economic growth.
Edited:

 

It really doesn't ever have to be paid back (really it won't ever be) as long as the US is basically the largest importer for a majority of major countries and remains the worlds dominate military force. If the US economy collapsed right now China's does, Japans does, Mexico does, Europe takes a major hit, China would likely bring down Australia ect ect it snowballs and basically everyone is left with massive losses if not a collapsed economy as well. Debts can be forgiven, given extensions ect. This isn't a bank coming to take a house, its a country with the largest nuclear arsenal in the world who is a major if not the biggest trading partner for much of the world. It doesn't mean lets see how high we can run the debt up, but there is a reason why it sits where it sits and the dollar isn't collapsing.

 

I'm just going to keep stacking. It's fun having a pirate's chest!

 

Pretty much. Gold and silver are the most fun 5-10% of a person's investment.

One day, one day:

 

Wouldn' it be nice if it ever got back to its historical ratio of 20 to 1. Here's hopin'.

 

Just remember, 1 trillion seconds is 33,000 years.

 

And one trillion microseconds, the timescale on which big players (HFT) are apparently supposed to make investment decisions now, is a bit less than two weeks.

 

Make new friends,
but keep the old.
One is silver,
the other is gold.
A circle is round,
it has no end.
That's how long,
I will be your friend.



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gold or silver 1000 oz bars would have been more considerate. true.

 

Howdy folks,

I have always watched the Gold Silver Ratio but recognize that it, like the Gold/XAU ratio, is operating with a new scale. There is the history of gold and silver fiat and 'free market' pricing and I agree that we'll probably never see 17-1 again. That said, I think 70-1 is too high and that leads me to overweight silver relative to gold in proportion.

The same can be said for the gold/XAU metric with the advent of ETF's. They changed the scale forever. It use to be over and under 5.0 in helping to determine your mix between bullion and mining stocks. Right now it's at 13.3. That leads me to think that stocks should outperform bullion until it comes down. Alas and alack, I don't invest in paper bullion that way.

I prefer the leverage of the junior silver mining stocks. Kitco's silver page has this listing of silver miners. http://www.kitcosilver.com/equities.html
The penny stocks are the most insane. Serious nose-bleed stuff. If the POG and POS start running - even for a few months, some of these cheap stocks can go up enormously.

and so it goes,

peace,

rono

 

I was waiting for this!

 

False raises when taxes and healthcare have overtaken the raise and in fact put some (like me) farther down).

Yes, because so many have fallen out of the labor force and refuse to look for work.

The stock market is at an alltime high because of cheap interest rates - but without a correction in so long - I fear there will be a big one.


As for gold/silver ratio - mine is always changing, simply because I tend to buy whatever is available at an opportunistic price.

It's not the ratio of gold to silver, it's the ratio of buy to sell that matters.

 

Howdy folks,

If you ever want some eye opening statistics go to shadowstats.com. He calculates al the basic gov't statistics by the older equations and methods. Real unemployment is running about 22-23%. These are the folks that have been thrown under the economic bus and are no longer counted as employed. Do you realize that when your checks run out, unless you continue to report, they start counting you as being fully employed?!? Inflation? Ever hear of hedonic adjustments? Er, if a product is new and improved, they can charge more and it doesn't count. Sounds good as long as you can still buy the old 'unimproved' version.

http://www.shadowstats.com/alternate_data/unemployment-charts

And apologies to the moderator for drifting.

and so it goes,

peace,

rono

 

"New Math" If you aren't reaching the bar, don't try harder - lower the bar.

 

The vast majority of people are unaware of this fact sadly

 

I buy both gold and silver. A lot more silver than gold. I have 450 oz of silver and 10 oz of gold. I look at it this way, which metal is more likely to double in price in the next year or two? Silver going to from $17.50 to $35 an oz or gold going from $1216 to $2432 an oz?? My bet is on silver doubling in price. So you are more likely to double an investment of $2000 in 2 years with silver then you are with gold. When silver is under $20 an oz I buy. I'm just waiting for it to hit $40 again and then I'm selling.

 

Are you ready to wait 30 years?



If so, are you sure silver is where you want to park your money over that interval?