The case to be made for gold vs silver

@kkathyl0 thats all the more reason to simplify- think about the monthly costs that aren't necessary, but don't go bone dry. I've cut out a lot of expenses (internet, cable, etc) and just use the essentials and throw the $200 I would be spending for cable and Internet (along with other funds) into my investment plan. You do need entertainment, but redefine what that is to you. Once distractions slowed for myself and my son I couldn't believe how much spending slowed and I realized how a couple dollars here and there led to more unnecessary spending. Instead of a movie or arcade we go to the park or read a book or play a board game. Don't let the dope pushers tell you what you need, know what you need and do just that.

@-jeffB let me preface with I am not an investing consultant nor will I take responsibility for any losses/gains directly or indirectly realized by any of my comments. That said, I think we are in for a slow period (buy time) with PMs. The stocks are doing well and there is trust in the system. The only thing I see on the horizon that may change that, a very small little bit, is when the white noise of Russia is squelched and people really see what is going on in North Korea and the Middle East we may see a little upturn. The only thing that could change the way things are is an unexpected catastrophic event (or/like a shift in political power in about a year and a half). But we like to see that too because it's a good opportunity to buy stocks. Both sides of the coin are shiny it just depends on which side is facing up.

 

Log in or Sign up to hide this ad.

I have receipts of buying gold in the 300-400 range.
Long gone now ... wish I bought more though. Once it was approaching $800/oz I sold out. But it kept going ...
I keep hoping it goes back down to the 800 range.

 

@moneycostingmemoney Agree, I have done the same

 

Claw. Anytime you sell it goes up and anytime you buy it goes down.
I think anything below $1200 will be an opportunity. And it prob won't go to $800 unless there is some dramatic economic event. If the price were to teeter below $1000, there's always some resistance level. Shorts taking a profit, longs hedging by buying more low to average down. I don't think we are going to see $800 anymore.

 

Yup, that's what I think too.

Just I wouldn't mind seeing $800 again. LOL

But I actually time things quite well considering ... It was just on a long run back then when China was monopolizing everything.

It's like this morning. I moved more cash ready to pounce on my stock pick. Market was down a lot. Stock nosedived a bit. Good timing watching the ask/bids & sizes then buying in at what I hope is a continued upturn in relation to the index and segment. I bought as it balanced out a bit, It turned up, then down .. but then bounced back up and profitable on that buy already.

 

I could provide a long dissertation/treatise on the availability/use of our funds, but believe that futile until you convince yourself. Contact your bankers about funds withdrawal policies, structuring laws if you continuously withdraw/deposit cash, etc.... Try to purchase a house sometime with cash through licensed facilities. Try to convince bank officers that they have no control of funds "on deposit". Learn your access limitations for a safe deposit box.

I apologize if I ventured "off topic" when discussing why someone might collect "tangibles" rather than dabble in CDs, stocks, bonds, etc.. I've had my assets confiscated numerous times by entities "unknown", when under the control of "others".

I believe, amongst other factors, Gold is readily transportable, and generally revered by most progressive societies, seldom being depreciated by knowledgeable buyers. I've never had a problem selling Gold OUS, Relatively, Silver often can hardly be sold here to recover an investment.

JMHO

 

@imrich i can't and won't argue any of that. And tangibles do include PMs, they just expand into more "necessary" things as well. As far as silver and other PMs lesser than the value of gold and platinum...try it on the bay. It's the opposite of how Sinatra sings of New York. "If it won't make it anywhere it will make it there."

 

Remember, this is a silver vs gold topic. Not a precious metals vs everything else topic.

 

Understood. I guess since everything ties in one way or another I would still find it as useful information. Especially when determining good entry points vs not so good entry points. That's why I went there (minus where to find cheap bread)
Edited to add- I did not intend to hijack at any point so if you feel that I did I apologize.

 

It does. And I think that could be a very interesting discussion. Want to start a separate thread on it? I'll likely have some things to add to it.

 

Done.
https://www.cointalk.com/threads/pm...the-factors-that-sway-their-valuation.300294/

 

Can't edit my post #38.
Market corrections, 1929, 1987, 2008/09.

 

I consider "corrections" differently. Those 1929 & 2008/9 years are more like Economic collapses than market corrections. 1987 I consider a large market correction, and subsequent corrections every so often.

 

Bear market is defined as a 20% drop.
But if it happens in one day instead of over time, it seems like a collapse.
A collapse to me is something you can't recover from. A correction, you can.

 

yes, I look at economic indicators too .. not just a basic definitions.
If the economy stops, then the stock market drops.
If the economy gets chugging again, the stock market follows.
I just use a larger definition ... what do you expect from an Economist ??
Everyone's right per their definitions.

FYI .. love your avatar. That's on my list to buy sooner or later

 

We have a separate thread for your other, non related posts. This thread is about gold vs silver. Please show some respect for the topic.

 

Many posts go off topic for a post or two, then back on topic. Such as this one. It's not a huge deal.
Anyway, I like the topic, and unfortunately have nothing valuable to add that hasn't already been said. I will say that to me, the uncertainty of PMs at this time seems more unpredictable than usual. It wouldn't surprise me if they fell, or rose with the aid of a political event, by 20-30% in a heartbeat. (short period of time anyway) I do like gold better than silver for the lower premiums, and future potential. JMO.

 

One thing about lower premiums is that you don't gain as much when the price goes up.

For example, if silver has a 10% premium and gold only has 5% then what happens if you buy $100 of each and the price increases by 20%. For the silver you paid $110 and so the new price will be $132, or $22 higher. For gold you paid $105, and the new price is $126, or $21 higher. So you gained more with the silver.

In other words, silver may cost more to buy after the premium, but you gain more when it goes up. As no one is planning it going down when they buy it makes little sense to say that the lower premium is preferable. The only possible scenario would be one where you expect everything to sell for spot. If that happens then something major has occurred and small differences in premium will not make much difference in the end.

 

That seems to assume that the premium scales proportionately to the spot price. I don't think that's usually true.

 

On a local time scale that is probably true, but I don't believe it is on a global time scale. By the time silver gets to $30 I bet the premiums will be the same as now percentagewise. That seems to be what I remember when it ran up to $30 last time.