I just sold 20oz of silver for a nice premium at $16.50/oz. I want to invest that $330 in some silver and gold. Right now I could buy 23-26oz of silver (depending on premiums obviously), or 0.3588oz of gold with a 10 peso gold coin and half sovereign gold coin at spot. I can get these at my local shop. The gold would be a great buy...it's at spot, but does silver have more potential? I'm planning to hold onto the gold and silver long-term too. It's so hard to judge the market, I know, but what would you do in my position?
I couldn't agree more with this statement. One of the two are off IMO, i'm leaning towards gold being high.
I use the 50 to 1 rule i.e. gold should be 50 times the price of silver. Today silver is at $12.82/oz; thus, using the rule, gold should be $641/oz but it's actually $921/oz. Therefore, either silver is low or gold is high, but the conclusion is the same, buy silver.
That's what I would suggest.....ask for opinions, get a consensus, then do the exact opposite..... Why even ask
I see silver/gold ratios published all the time. I think they are garbage. They are two different metals with completely different supply/demand characteristics. There really isn't any reason for their to be a "correct" or "normal" ratio between the two any more than there is between copper and oil. Personally, I think people imagine there is a relationship where actually there is none. Just my 2 cents.
That's part of my reasoning in getting gold. All this talk about ratio's and one metal being under or over valued is so speculatory.
I'd say you couldn't go wrong with either but I believe silver has an edge. I have no doubt gold will at least double in my lifetime, if not only over inflation. But we don't know how far off that is. It's far more likely that gold gets back to a thousand, and if it's really strong, may push 1200 to 1500 in the short term. That's only about a 20- 50% gain at best. That seems to be a conservative projection these days. Silver may be volatile but it could double this winter. As in 100% gain and it's much more believable. Much more possible. It's worth less to begin with so it's much easier to double in dollar value. It's down in the 12's now. It hit 20.00 not that long ago. I think the fact that it's back down in this range is a gift to everyone. Eventually, (again if not only for inflation), it's going to hold in the 20 range or higher and the good old days will be gone. Both markets are manipulated and artifically supressed. I see very little reason why either would drop much from their current positions though. People consistantly pay 16,17, 18 for silver on ebay regardless of spot price. People have gotten used to this range and it seems like the new low end to everyone now. A lot of upside potential as more people seek to invest in something real. If people ever demanded physical possession of all the paper stock out there, it'd be a disaster. Prices would go through the roof once people figured out there wasn't as much physical stock as what people thought or proposed. The fake paper stocks are probably just another aspect holding the prices down. People think they own gold but in reality, they own paper that says they own gold. Which doesn't exist. As long as people will keep falling for it, other people will seize the opportunity to take advantage of them. Eventually somebody gets left holding the bag though.
Right now, just starting out, I feel better with gold. I do have about 40oz of silver already, so I'm not just stuck with gold.
I like silver it as at a much more obtainable price for me for the quantity you get i will never own paper physical delivery please thanks
