1/65 silver/gold?

Should i be for (long term investmesnt ) be buying 1oz gold for every 65oz of silver? I feel silver has more room to move,and right now i am 2000/1 in favor of silver,help please??

 

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Hi Ridder,

Well, I have the same conundrum as you. I'm still relatively new to the PM market, but here's MY personal take on it and what works for me.

For me, silver is the way to go. I'm a student, have a limited income and based on how much gold slided today compared to silver, I would much rather take my punches 6 cents a day while trying to flog my silver verses $7.10 a day for gold. Now I know its not going to be the same amounts each day, but it seems pretty stable from what I've read.

But now on the other side (non broke student), as you pointed out in your equation, it takes 65/66 ounces of silver to match 1 ounce of gold. This makes gold an easier way to store an investment in the long run, whether you keep it buried in the ground or a safety deposit box in a bank.

I know I didn't exactly answer your question, but gave some of my ever changing opinions that grow as I read more.

I'd love to give credit to one member here on CT, but I simply can't remember his handle, I sure do like what he said though (and I'm gunning for the same myself); "2500 ounces of silver and 40 ounces of gold".

I just did the math 2500/62, sounds about the same as what you said.

Best of luck.

 

The easiest and a logical way is to just try to keep the dollar balance of your gold and silver about equal. So if you want to make a purchase, and the dollar value of your silver is greater than your gold, then just buy gold until they are equal. But it probably won't matter much which one you own. Nobody really knows which will perform best.

 

Due to gold cost.. I buy much more silver. I feel I'll have a bigger growth in wealth with silver in the long run. Why?

Lets say you buy 65 oz in silver.. at $17.15 an oz

Then you buy 1 oz of gold at say, at $1133

If silver goes up just $5 to say, $22.15 an oz (not impossible), you'll make $325

If gold goes up $5... you'll make $5. Heheh...

I'm new of course, but in my mind, gold has to move A LOT further than silver, to see anything from it. gold, to me, is a way to SAVE money.. put it into something for safekeeping, and get it back out years down the road when you need it. Silver is more of an investment, that to me, is undervalued. Sure.. not as awesome as wall street, money market, stocks, ect.. but, its also lower risk.

Prices will go up & down, but the metal is in my hand.. not an account number on a brokers computer screen.

Besides.. I like to look at all that silver.. collecting it is fun. Its an enjoyable way to save money.

 

When you buy any precious metals, a good piece of advice i got is to buy em and store em away. they are a long term investment. so buy what you can afford when you can afford it. and put it in a safe deposit box or something. and when the rainy day comes. get out what you need and sell it. dont watch prices day to day unless you are buying, if its down 1 day buy. if it jumps super high unload and wait till it drops again to buy more. because it is a roller coaster and if you are constantly worried about losing a buck or gaining a buck you are in the wrong area of investment and you will give yourself an ulcer. this is just my opinion and you can read into it what you want. thanks...Jon

 

I think if you're buying any bullion at all, you are ahead of the game. Most people aren't even buying any. But your question made me think. I tend to favor gold because I associate it more with long-term saving, but there are good arguments for silver too, so maybe we are all just doing what we are personally most comfortable with. If I were you I'd probably want a little more gold, just for the sake of diversification.

 

For everyone buying PMs for the "long term," just keep in mind that it is entirely possible that at some point in the next 5 years, we will have another price spike in either gold, silver, or both that will mark a time when selling bullion might be the correct course of action to grow and preserve wealth. I don't think you have to make the commitment to always buy PMs for the long run, or forever, to justify the purchase. They are a good holding now, and that's all you need to figure out. The future is unknowable.

 

True... When the market is right to sell, I'll be selling. No doubt.

Right now, we're jsut taking some extra cash flow from the biz, and instead of putting it into a savings account at 1%, putting it into silver mainly, gold occassionally.

 

I watch the markets daily just for something to do,but thats all,i am not set on keeping any PM for a certon amount of time,if prices x2 or x3 of what i paid for it occurred i would sell some and save some of the $ for when it goes back down. I think w/ur guys helpfull information i will put my $ in some more gold and cut back on silver alittle. Thankyou,you ppl here made a differnce today!

 

Wow! 2000:1. You say you just started out, and you already have 2000 ounces of silver? Or do you just not have any gold yet? If I had 2000 ounces of silver, I'd definitely buy some gold. But at present, I'm lucky to have the few hundred ounces of silver I now have.

I do agree with Sweeper. You have to sell and take profits at some time. Otherwise what good is the investment? My goal is zero cost. When silver prices go way up (as I think they will, I just don't know when), the idea will be to sell a portion of my holding so that the cost of what I paid is zero. All the rest of the holding will be gotten essentially for free. I can rest assured with this, because if PM prices then go down, it won't bother me, as what I hold didn't cost anything. And if I found out I sold too soon, and PM prices continue to go up....well now I have just that much more to sell for profit.

 

I started in NOV of of 2009 i have about 200oz of silver and 1/10 oz gold. If i got % wrong sorry i think that 2000/1?? Ive started late in life and feel the need to make up some ground,i am blessed to have a job that pays well and has overtime if one wants to work it (i do). I have a goal in mind and will just keep plugging away slow but sure LOL.

 

Me too bud... I got started this month... read everything I could, studied buying trends on ebay... joined here, then bought up .5 oz gold, and about 110 oz of silver so far (half coin, of coin, half slabbed... the rest in engelhard loafs).. feel like I'm the last one in the race!! hehe... playing catch up.

 

I don't think any of us are too late, even if the 1970s was probably the best time . Most people are not yet buying silver and gold, and although the Chinese are encouraging their citizens to buy it, not so here. (Makes me wonder.) If one has a job, and can put some extra aside to buy silver and gold, while still keeping some cash around, this means that our dollars have not devalued so far that it is out of reach. That is what I would call late.

 

Why do you say that? The US Mint offers and advertises a variety of gold and silver products. There are numerous TV commercials offering gold. A number of investment advisory services suggest a 5%-10% gold weighting in portfolios. Many new ETFs and closed end funds offer gold and silver ownership. You can buy and store metal from a variety of internet dealers like Fidelitrade and Goldmoney. Thousands of gold and silver products are available on Ebay.

What sort of encouragement are you expecting to receive, and in what form?

 

Well, when you talk to the average investor or someone who does a lot of investing, and you ask, "what about gold? What about silver?" The usual response is, "you can't make any money with gold and silver. Here let me show this this extremely leverage, derivative hedge fund, thingamagigie." It's like even suggesting a small allocation in gold and silver is like asking one of these investment managers to cut off their right hand.

 

Many investors will complain that gold doesn't provide interest or dividends, but will be happy to purchase a stock with no dividend and frequently no earnings.

 

The gold would be better in my opinion!!

 

I was referring to the current Chinese government campaign which actively encourages their citizens to buy gold and silver for investment through TV advertising, promotions and the like. That's different than gold being available commercially as it is here. It would be comparable to the US government suggesting that people buy gold in their 401(k)s, or just keep some for insurance purposes. There has been some speculation about it, because it is unusual for governments to actively promote gold and silver ownership by citizens. I really don't have an answer. There is an interesting description of how easy it is to buy gold in China at Jesse's Café:

http://jessescrossroadscafe.blogspot.com/2010/01/memories-of-beijing-ten-years-past.html


To kill time, I extracted paper cash from atm network and exchanged same for little one troy ounce monetary gold wafer at airport sub-branch of bank of china. The staff were courteous, and the sub-branch manager spent 5 minutes with me to explain the way to buy and sell back gold.

Each wafer is individually numbered, and registered.

China is progressing fast in its re-engagement with gold. Wonderful. It is interesting that gold seems to be everywhere now at the China retail level, legally bought, kept, sold back, and all tax free, at transparent pricing, in alignment with gold reform that was two decades in planning, implementation, and rollout.
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I wasn't making a specific comparison with the US, but since you asked, there things the US government could do to make gold ownership easier. From allowing purchase within our 401(k)s, to making gold available on a walk-in basis at banks as it was in the 1970s, to changing the tax laws to tax it at the capital gains rate like other investments. (Instead, they are spending a lot of time figuring out how to "encourage" people to annuitize their 401(k)s through the insurance companies. But I digress.)

 

I am putting my money in silver because just like some other posters have said. It takes gold to move a lot further than if you have the same amount of silver.But on the other hand, I also invest in penny stocks and those of you who know what they are, very risky. I like a little risk. LOL

 

Penny stocks? Sooooo what do you think about Washington Mutual (WAMUQ.PK)