Silver or Gold?

Here's a question I'd like to open up to everyone. There is no right or wrong answer, just different member point-of-views.

If you had $10,000 in USD and needed to convert that into gold or silver.

Which one would you choose and why? You cannot have both metals, you can only choose one.....


Go!

 

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Gold if it was for 10+ years time frame.

Silver if it was for under 5 years.

 

Damnit! I forgot about the time frame! You found a loophole!!!

 

It depends........

If this was for investment purposes and for investment purposes only, then I will go with $10,000 in silver because of more potential upside than gold.

If a person is a collector, then a person should spend the $10,000 and go and buy whatever gold or silver that they like to collect.

If for use as a store of value and as a hedge against inflation, then gold is the better of the two metals IMO. Gold is easier to store than silver if a person is dealing with a large amount of money such as $10,000.

My final answer: I say Silver because I even though I like both metals, I like silver better than gold.

 

Silver. It is more certain to go up since it is both an industrial metal and precious metal, and since there are fewer ounces of silver in above ground storage facilities that is available for delivery.

 

Do you guys have any comments on Afghanistan and the chance that they may have found gold there? I know it is way too soon to even know how much is there and it's affect on gold...

On that note: Both gold and silver doing quite well today!!

 

Afghanistan has no effective legal system, no roads, no electricity, no railroads, no ocean access, and no safe way to ship it out of the country. Combine that with perpetual war and a county governed by warlords that will have to be bought off to permit mining, and it is unlikely that any significant amount of gold will come out of there during your lifetime.

 

That is fantastic to know. I knew that there would have to be some kind of mining system all set up and you're right, that country is in such distress, unless the military were to guard that mine 24/7 with thousands of troops, you're just asking for a big heist.....

Now that I think about it, all it takes is a couple mortar shells to mess up the entire thing.

Even our green zone gets attacked occasionally.....

I feel better about my gold now....

 

I would choose gold, although I do agree that silver is undervalued and has a lot of upside potential. 10K in gold would be easier/less expenside to store and more internationally recognized and appreciated as a store of value. TC

 

At this point, if I had $10,000 dollars for metals, I woud buy nickels.

Yet, since nickels are not part of the game, I would .........
If I wanted to be conservative for the next 20 years, and wasn't trying to get rich, I would pick Gold. Gold is less bulky to store and does not strain my back.

If I wanted to leave the family something they would cherrish for generations, I would pick silver (lots of pocket change silver lovers in the family).

Short term, I would buy silver (next few years). Long term, I would buy silver (more than 10 years).

Silver wins!!!!!! (rare coins should have a place too).

It is fun to dream.

 

Too bad platinum isn't a choice. It has the industrial play like silver but is so much more compact.

I would choose silver because of the potential upside and I think it would fare better in a survival situation. A moster box of Eagles would be a little over $10000 right now but I can carry it.

 

It seems like the consensus so far is silver temporarily, at least for 5 years and gold more for long term.

It is interesting that we believe silver has a much better upswing, at least for the first 5 years compared to what we think gold could achieve.

So with that said, look at your stash, and is your silver ratio to gold ratio more or less?

I can say that due to the price of silver, I have way more ounces of silver than gold!!!

 

I am partial to gold because it is more easily stored and doesn't seem to have as much fluctuation in price percentagewise as silver. At $18/oz, you are looking at 555.55 oz of silver vs.approximately 8 oz of gold.

 

I just checked and have a 1/40 ratio.

Not because of any plan, just worked out that way. Do any of you have a "ratio" you go for and what ratio do you currently have?

 

I'm bullish on silver for the reasons articulated by Cloudsweeper. Way more upside than gold. What has a better chance of doubling in value over the next 10 years?

Plus, everytime I turn on the TV someone is trying to sell me gold bullion at a ridiculous mark up. To me, that spells "B-U-B-B-L-E".

When the economy recovers, people will sell their gold at a loss to make (they think) more money in the stock market. The price of gold will fall back considerably. That's when I'll buy gold.

Buy low sell high. Its really as simple as that.

 

If it was, everyone would be rich.

 

Everyone who habitually buys low and sells high is rich, Cloudsweeper.

However, most people do the exact opposite. Just ask G. Gordon Liddy.

 

I don't really have special plan as far as ratio goes between gold/silver.

I suppose anyone who does buy silver/gold, naturally will have some more silver due to its affordability.

I just heard yesterday that Ron Paul puts 50% of his finances in precious metals. And Peter Schiff does the same. That's a lot more than the 10% that most people say you should have in ownership.....just something to think about it.

If these guys really own that much, then they are putting their money where their mouth is....

 

But what is low and what is high? Gold today is high for someone who bought gold at $200 right? But will gold ever go back to $200 in our lifetime?

 

That's the rub, Fools. How many people can consistently buy low and sell high? Not too many. If there were, then as Cloudsweeper says, "everyone would be rich".

Knowledge is power, though. Read and talk to other people about investments. Learn from your mistakes.

As to gold right now...its at, or near an all time high. People are panic buying. Common sense dictates you don't buy. Silver is well below its historical high. Go with silver. Once gold comes down to $800 and ounce (and it will) buy gold and sit on it until the next "crisis".

Investment always carries risk. Common sense and due diligence can reduce risk to acceptable levels.