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<p>[QUOTE=&quot;Rono, post: 162506, member: 6492&quot;]<b>silver and gold and the bullion market - off topic</b></p><p><br /></p><p>Good morning,</p><p>&nbsp;</p><p>Collecting coins for 50 odd years, has exposed me to the precious metals markets - to my profit, TYVM!&nbsp; So I follow it extremely close both as a collector and a very serious investor so pardon me as I drift a bit.</p><p>&nbsp;</p><p>&nbsp;</p><p>Gold temporarily broke 600 and silver broke 12 and indeed, the gold/silver ratio dropped to 49.&nbsp; Strong resistance for gold is at 625.&nbsp; Near term support is at 580.&nbsp; 600 and 12 are psychological resistance levels and make headlines, so this is good.&nbsp; The gold/silver ratio dropping to 49 is key because being in the first states of a long term bull market for precious metals and commodities (in my opinion) we should continue to see a reversion to the mean with the gold/silver ratio.&nbsp; Historically (at least for the known history of mankind), this ratio has been 1:15-20.&nbsp;&nbsp; During the great bull market of the late 70&#039;s (rono was selling lots of junk silver to pay for schooling), gold doubled to 850 while silver went up tenfold to around 50 - er, this is 1:17.&nbsp; For this and other demand and supply side issues, I&#039;ve always felt the profit potential from silver was much superior to that of gold.&nbsp; This doesn&#039;t mean that I don&#039;t want to own gold, just that I want to&nbsp; overweight towards silver.</p><p>&nbsp;</p><p>This group will normally lean towards bullion in the form of rounds or ingots or the AE series, etc.&nbsp; Other ways to invest are with the new gold and silver ETF&#039;s - gold GLD, IAU, IGE and silver SLV.&nbsp; Supposedly, these are backed with bullion, albeit some of the purists say it&#039;s mostly paper.&nbsp; Another bullion investment is the closed end mutual fund Central Fund of Canada CEF which goes 60/40 gold/silver bullion.&nbsp; Note that the ETF&#039;s are taxed at 28% while CEF is at 15%.&nbsp; Or you can invest in any number of mutual funds that go with precious metals like Tocqueville TGLDX, Vanguard VGPMX (closed to new investors) or US Global UNWPX.&nbsp; These are pm funds, rather than pure play gold and cover the other metals.&nbsp; If you want more coverage and great leverage, you can invest in individual mining stocks for the different metals.&nbsp; For gold I like GG and NXG and AUY.&nbsp; For silver I like CDE, PAAS, SLW, SSRI and AEMLW.&nbsp; For palladium PAL.&nbsp; Lastly, you can play the futures market, but it&#039;s hard, tricky and I&#039;m clueless - so be very careful in this arena.</p><p>&nbsp;</p><p>&nbsp;</p><p>As for us collectors getting squeezed with rising prices, feh.&nbsp; They will have less of an impact on good stuff, and hurt more with the mundane.&nbsp; Also, if silver and gold are getting pricey, there is always the coppers and nickels to keep us busy.&nbsp; Geez folks, the world of coin collecting is so vast, there is always a way to skin the cat.&nbsp; We need to use our knowledge to better our collections for fun . . . and profit.</p><p>&nbsp;</p><p>peace,</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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