Do you consider the silver to gold ratio when buying?

I think that is a great plan for short term investing in gold and silver. I'm in it for the long haul, so when I see silver below $17 an oz I see that as a buying opportunity because I'm not planning on selling for many years down the line.

 

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So you should use the 200 year EMA, not the 200 day EMA?

 

I agree 100%. It works for long term as well. Below $17 is below the current 200 day average.

 

Just ask yourself "How high does gold have to go to double my money at today's prices? How high does silver have to go to double my money?" And silver has a lot more industrial uses than gold does so buying at $17 per ounce and waiting for $34 per ounce doesn't sound bad to me. PM's are an investment, a buy and hold don't sweat it when it drops investment. If you buy at $17 and it drops to $15 you didn't lose $2.00. Fact is you won't lose a cent until you sell. The best thing to do is buy at $15 so you can average and say you bought at $16.

 

When you buy gold, you should put it in a safe place and hope it goes down in price. Because when it goes up, there's trouble someplace in the world and our cash is going to buy less.

 

I agree, PM's in general going up significantly means the SHTF scenario is going on. I want my 401K to do well and my Au and Ag to just hang in there and go up slightly over time.

 

Right. The precious metals serve in part as insurance...and who in their right mind wants a situation where they need to collect on their insurance?

 

Thanks for your help. I'll have to think this over.

I'd say most CoinTalk posts are against the silver to gold ratio. Some call it the GSR (gold to silver ratio).

I may take a contrarian opinion and think the current prices are in the market. I may go against this with more silver (in coins).

 

Coins are minted for circulation. Bullion is not. Paper assets are not, including greenbacks or whatever color they are today or tomorrow.

 

Yep, but for the coins with silver content they serve as a bullion option for us.

 

One can not think of coins as bullion. They just contain a small amount of Gold or Silver. Because it's a coin you'll pay a higher price for that "bullion" than you will buying an ounce outright.
Coins are a collection while bullion is an investment. Yes we collect rounds and such but you get the idea. It's easier to sell a bar or round of bullion than that coin in your possession.

 

I still like the physical feel of the gold and silver coins.

 

Sorry, I'm not seeing it.

An AGE contains exactly as much gold as a 1-ounce bar. But the AGE is considerably harder to fake well. I think that's a big part of the reason AGEs trade "at a premium" -- a premium that you pay when you buy, but receive back when you sell.

And bullion is speculation (or, at best, insurance), not "investment". It's earning nothing; you're just believing it'll be worth more, or at least as much, when it's time to sell.

 

I don't think about investing in silver per se when buying silver coins.

That said, I collect high grade classic silver coins as they tend to be great in any market.

 

I think the terminology you're using is the reason you fail to understand my point. By using the definition as defined by Merriam-Webster we may agree.

Investment: The outlay of money usually for the income or profit: capital outlay.

Financial Definition of Investment: An investment is an asset intended to produce income or capital gains.

Speculation: Assumption of usual business risk in hopes of obtaining commensurate gain.

Financial Definition of Speculation: Speculation is a method of short-term investing whereby traders essentially bet on the direction an asset's price will move.

Insurance: A means of guaranteeing protection or safety.

Synonym: One of two or more words or expressions of the same language that have the same or nearly the same meaning in some or all senses.

All definitions are from Merriam-Webster and by applying them to your response you have no insurance of anything and by speculating you're talking a huge risk.

According to the definitions Investment and Speculation are synonyms, meaning they mean the same or almost the same.

Thus, applying my post and your response, we agree.

 

Surely that should be unusual business risk?

Which would make it not the same thing as investment.

 

I look at the gold/silver ratio when considering buying. With the ratio over 80 I would think that silver is undervalued. Does that mean that silver will move higher? Does that mean that gold will move lower? Which way does silver or gold move to attain a better balance? Hmmm?

 

I remember back in 1980 sitting on the bus listening to a man telling his grandson that it was a good time to buy silver. It was over $40 an ounce. He also told his grandson that it would never go below $40 again.

 

I own mostly gold coins. I like silver now over gold.

I say no.

I say no.

This is a hobby for me. I don't expect an investment return over the inflation rate. I own many various gold coins of 1 oz (a few are 1/4 oz. from trades). Most of my silver is in Vam-Morgan's with some 90% rolled coins.

I wish transaction prices were not so high.

 

Personally Doc J, I don't consider the coins you mentioned as 'bullion'. I'm not really a Morgan person, however I do own a few collector coins and like you they are a hobby for me as well. I also think of my proof silver eagles as collector coins; not bullion. I guess the BU silver eagles that are in slabs are bullion but again I don't consider them as such because I have paid a premium for the slabbed coin and I only purchase one for each year. The ones that I hold as 'bullion' are in tubes usually. Even the BU silver Washington quarters that I rescue from the 90% bin at the local coin shop I consider bullion because they are purchased at a small premium over spot.
'Just sayin.'