I started buying bullion in a 10 silver to 1 gold ounce amounts. Starting to think I should have more silver less gold in the ratio. What do you guys think?
I started buying bullion in a 10 silver to 1 gold ounce amounts. Starting to think I should have more silver less gold in the ratio. What do you guys think?
At least 100 to one silver to gold. Unless storing the silver is an unbearable burden to you, I would concentrate on silver. Ask yourself what is the likelihood of your gold doubling in value in the next 5 years. What about silver?
madfranks (3rd December 2016)
Hi Schrekmer. Welcome to GSUS!
Check out my article. It probably does not answer your question completely, but is a starting point. The context of this article is that you are buying for a SHTF scenario, not "investing".
What Do Silver and Gold Buy?
By John Q. Public
"...Conclusions
A typical family requires around 113 grams of gold or 113 ozt. silver per month to live. This is based on actual purchasing power considerations for silver and gold...
From the analysis, silver would be the most cost effective purchase based on this scenario. With the gold:silver ratio currently so high, and the purchasing power of monetized gold and silver indicating the need for a lower gold:silver ratio, silver gets you twice as much bang for the current buck. Of course this analysis is approximate, and other factors may force the ratio to stay the same or even get larger..."
"What Difference, at this time, does it make?"
"What is 'is'?"
"Because you'd be in jail"
Yeah storage isn't an issue. I guess I'm really trying to diversify. I have all the real estate and stocks I have time to manage. If I leave the money in the bank my wife spends it. Haha
Invest in a divorce, but still don't leave money in the bank. I think at these times it is a good idea to be overweight silver, which means you should probably buy at least 100:1 silver:gold. Or rather you should have more dollars in silver than in gold. As gold-silver ratio goes down to 40-45:1 you should start going towards underweighting silver in dollar terms.
madfranks (3rd December 2016)
Haha love the wife!
Still new to PM so I am trying to find something that balances saving with opportunities to increase in value. I see on YouTube most people have a hard time getting their money back on bullion bars but then people hate paying the premium on coins. What do you guys think about the collectable poured bars or specialty rounds from the civilian mints?
It depends what you see the future as. If you think there is a likely chance of a currency collapse in the future and you buy PM's as a hedge against these risks, you certainly get less metal for your dollars with the premium stuff. However if you look at it from the perspective of past performance I think (I am not sure though, since I am not a collector) you'ld have a better return on the premium collectors items. But of course that is if trends continue as in the past. Probably if you are going down the purdy collector coin lane, you should spend a lot of time learning what to buy and at what price.
My ratio is two thirds silver, one third gold. Gold is less volatile and so easy to sell. I started 100% silver. I sold silver in 2011 that I acquired between 2003 and 2005 - I traded silver for gold at $47 and $1400. Silver collapsed from nearly $50 to under $15 at one point, and gold lost a much smaller percentage. Silver has given me that pit in my stomach feeling many times, while gold has been much less worrisome on the corrections.
Silver is a great speculation at today's prices, if you have thick skin and strong hands.
I like only government minted coins, US coins preferred (better liquidity over rounds and bars when prices are high).
Every penny you spend on premiums to get pretty, rare or collectable metal is a penny you won't have to invest in more metal. Which value do you think will increase? The metal or the premium?