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PM purchase how to diversify?

KUCHKUCH Posts: 1,186
in Precious Metals
If one was to purchase Platinum,Gold and Silver what percentage would you diversify?
Example - Platinum 20%
Gold 50%
Silver 30%

OR, if it was just gold and silver

Gold 65%
Silver 35%

Finally, to deversify would you add Platinum to the mix?

Comments

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Ounces or dollar percentages?

    Me I like 80% gold and 20% silver. Trying to stack more silver!

    I do not tie my $ up in the other metals just for the liquidity factor in my part of the world.

    Gold & silver have a long track record. Platinum & Palladium are newby's compared to Au & Ag.
    Avid collector of GSA's.
  • KUCHKUCH Posts: 1,186


    << <i>Ounces or dollar percentages?

    Me I like 80% gold and 20% silver. Trying to stack more silver!

    I do not tie my $ up in the other metals just for the liquidity factor in my part of the world.

    Gold & silver have a long track record. Platinum & Palladium are newby's compared to Au & Ag. >>



    Percentages would be in dollar amounts, which really is the same relating to ounces.

    thanks for your reply!
  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    I am more of the school that you should own approximately equal amounts of gold and silver (measured in dollar value). With some palladium and platinum in smaller amounts.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • derrybderryb Posts: 36,953 ✭✭✭✭✭
    If purchasing physical, I'd go 75% silver and 25% gold. Slight adjustments for the dips. I believe long term (5 yrs. +) silver will be the big winner by a very large margin. I buy and sell my gold with the ups and downs, but keep the silver, buying the dips, long term.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • bestmrbestmr Posts: 1,780 ✭✭✭
    I'm on the poor side of PM's. I have a LITTLE gold but LOTS of silver. I just can't justify spending $1100 an ounce when I could get like 60oz of silver. image
    Positive dealing with oilstates2003, rkfish, Scrapman1077, Weather11am, Guitarwes, Twosides2acoin, Hendrixkat, Sevensteps, CarlWohlforth, DLBack, zug, wildjag, tetradrachm, tydye, NotSure, AgBlox, Seemyauction, Stopmotion, Zubie, Fivecents, Musky1011, Bstat1020, Gsa1fan several times, and Mkman123 LOTS of times
  • jmski52jmski52 Posts: 22,906 ✭✭✭✭✭
    I no longer know offhand what my ratio really is. I think that any mix is good. Truly, any mix is good. Forget the price differential between silver and gold - imo, it doesn't matter that much. Others will tell you that the ratio is important. Ok, but that's not the issue - the issue is getting out of the dollar and out of paper. It does get a little more cumbersome to manage a silver hoard because of it's size and weight, but I suspect that silver will have the best overall potential for price appreciation in the long run. Still, I wouldn't be caught without gold as backup.

    Platinum is a speculation for me, but it's been a very good one, and it's also portable. I also like palladium but don't own any. I also consider palladium to be a completely different animal than platinum because it has different supply dynamics. All 4 of the precious metals will have their day. And just as certainly, some day they might not even be good investments at all. Keep evaluating as you go. Nothing is static.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bestmrbestmr Posts: 1,780 ✭✭✭
    I agree about the storage issue with silver. I haven't got anywhere near that close for it to be an issue. If I decide I have more silver than space, you can always sell/trade it for gold or whatever and start stacking again.
    Positive dealing with oilstates2003, rkfish, Scrapman1077, Weather11am, Guitarwes, Twosides2acoin, Hendrixkat, Sevensteps, CarlWohlforth, DLBack, zug, wildjag, tetradrachm, tydye, NotSure, AgBlox, Seemyauction, Stopmotion, Zubie, Fivecents, Musky1011, Bstat1020, Gsa1fan several times, and Mkman123 LOTS of times
  • OPAOPA Posts: 17,124 ✭✭✭✭✭
    Mine is split up...33% Gold, 33% Silver & 33% Palladium. (Sold all my Plats, which only amounted to 2 oz)
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • KUCHKUCH Posts: 1,186
    Yes, I am refering to physical holdings. Thanks for the replies AND keep them coming!image
  • PreTurbPreTurb Posts: 1,193 ✭✭✭
    50% gold
    30% silver
    10% plat
    10% pallad
  • DarinDarin Posts: 7,213 ✭✭✭✭✭
    Here's how I diversified.

    I rented a safety deposit box. Then I stuffed it with silver(108 lbs. worth). Now I'm filling in the cracks with gold.
    This was a long process for me. Years and years, a little PM at a time.

    Edit- Should have said I started with a small safety deposit box, have upgraded twice to a bigger size over the years.
  • CaptHenwayCaptHenway Posts: 32,251 ✭✭✭✭✭
    Diversification is good, but do not allow a pre-set formula to cause you to pass on a good deal in a metal other than what the formula says you should buy.

    In other words, say you have the funds to buy with, and the formula says you need to buy gold but your friendly B&M happens to have a killer deal in silver that day, buy the killer deal and offset it when you make your next purchase.

    Buy what is cheapest when you are buying.

    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • gecko109gecko109 Posts: 8,231 ✭
    Percentages would be in dollar amounts, which really is the same relating to ounces.

    thanks for your reply!



    Not really. My personal holdings are below:


    Gold : 7%
    Silver: 93%

    But wait! Thats as expressed in physical ounces. If I redo the numbers as expressed in dollars, my new allocation is below:

    Gold: 82%
    Silver: 18%

    See the difference? It is important to clarify whether its value or weight that you want these ratios expressed in.
  • KUCHKUCH Posts: 1,186
    gecko109, I see your point.

    If one assumes the holding of PMs is a hedge against inflation then it would be the value not the percentage of weight that would be important. Most replies here believe silver has the better chance of higher gains, but when we look at your numbers, the value of holdings by %, silver is substancially lower.

    Several replies said to buy equally by weight, however the monetary value would be far from equal.

  • gecko109gecko109 Posts: 8,231 ✭


    << <i>gecko109, I see your point.

    If one assumes the holding of PMs is a hedge against inflation then it would be the value not the percentage of weight that would be important. Most replies here believe silver has the better chance of higher gains, but when we look at your numbers, the value of holdings by %, silver is substancially lower.

    Several replies said to buy equally by weight, however the monetary value would be far from equal. >>




    I also believe that silver has the better chance of larger gains. However, its FAR easier to store $50,000 worth of gold than to store the same amount of silver!!! If I had a private army and a mini bullion depository that was accessible to only myself, my ratios would be much different with silver being the overwhelming majority of my holdings.
  • 1jester1jester Posts: 8,637 ✭✭✭


    << <i>gecko109, I see your point.

    If one assumes the holding of PMs is a hedge against inflation then it would be the value not the percentage of weight that would be important. Most replies here believe silver has the better chance of higher gains, but when we look at your numbers, the value of holdings by %, silver is substancially lower.

    Several replies said to buy equally by weight, however the monetary value would be far from equal. >>



    My allocation is currently about 99.625% silver, 0.125% gold, 0.250% palladium by weight; which works out to approximately 88% silver, 6% gold, 6% palladium by $ amount. Not that I'm sweating the ratio, or even keeping track.

    BTW, apropos silver "taking up too much space", I don't think anyone will be worrying about that when it sky-rockets in value in the future. In other words, the few dozen cubic inches it takes up in space hardly seem to cause me to not accumulate it. Weight-wise, yes, it is rather tedious to try to move hundreds of pounds of metal around, but that's hardly a reason not to buy it.

    imageimageimage
    .....GOD
    image

    "Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9

    "Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5

    "For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
  • derrybderryb Posts: 36,953 ✭✭✭✭✭
    25% gold, 75% silver measured in dollars. One always uses dollars when weighing a porfollio. If your financial advisor told you to go 25% exxon and 75% dupont, you wouldn't measure it in shares.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • CiccioCiccio Posts: 1,405 ✭
    I was just playing with my file yesterday and this is what came out (unless I messed it up).

    In ounces.

    95.64% in Silver
    2.41% in Gold
    1.85% in Palladium
    0.09% in Platinum

    And in dollar.

    31% in Silver
    50% in Gold
    16% in Palladium
    3% in Platinum

    How am I doing after one year in PM?
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