If Buying What Ratio?

KUCH

If one was buying TODAY, what would be the ratio you would buy gold to silver?

Speaking in dollar amounts:
Gold 60% of Expenditure
Silver 40% of Expenditure ???????

and lets talk about ozs.

Gold 3 to 1 against silver?

I know this has been discussed before, can't find the blog, however today is different?

Tomohawk

Because I'm a poor guy, and gold at these prices makes me nervous, I'm 100% silver (traded my last 1 oz gold to a forum member 2 months ago).

Not sure if that was the right decision, but so far the ratio is looking good (not to mention the spot price appears to be headed back to $20 soon).

To me, the room for growth seems much better in silverland. However, I'm kicking myself for not getting Rhodium at around $1100/oz just a few short months ago!

gecko109

Alot depends on what you already own I suppose. If starting out with a fresh, blank canvas, my advice would be 50/50 split moneywise on gold and silver. Might be the "safest" play. However, since often times (not always, but almost always) gold and silver move in tandem as far as gains/losses, it may not even matter what ratio you use. I personally believe that someday, silver will be more appreciated for just how limited the above ground supply really is. At that point, we may see the current 60-1 ratio go back to a much more reasonable 35-40 to 1. I predict that this will come not at the expense of falling gold, but rather by way of rapidly rising silver prices. When this "enlightenment" will occur is simply pure speculation though, so its not a very useful prediction by me.

Since im so heavy on gold right now, my buying ratio for the next few months will be 100-0 with silver leading the way!

DoubleEagle59

Silver....a no brainer. because the ratio is still high (silver cheap relative to gold).

gsa1fan

$ amount I have 10 to 1 gold to silver.

I like amounts I have now so I just look for most bang for my $ on current buys.

Steve27

<< <i>Silver....a no brainer. because the ratio is still high (silver cheap relative to gold). >>



I agree, I always use the 50:1 rule and right now silver is a bargain relative to gold.

OnlyGoldIsMoney

Based on ounces I am 20 to 1 in favor of silver. I plan to stand pat with silver since I got to the large round number I wanted in January 2010. Since then I have been adding gold to get my ratio to 10 to 1. These days I am paying little attention to which metal is the current bargain and more attention to getting to my goal.

derryb

All depends on your plans. However, silver shows the most upside percentage of the two over short, medium and long term ranges. Silver is where the most money will be made. Be selective, buy dips, buy physical, and think ease of resell.

Disclaimer: This is just my opinion, but I'm backing it with my money.

KUCH

<< <i>All depends on your plans. However, silver shows the most upside percentage of the two over short, medium and long term ranges. Silver is where the most money will be made. Be selective, buy dips, buy physical, and think ease of resell.

Disclaimer: This is just my opinion, but I'm backing it with my money. >>



"ease of resell" I'm thinking 10 oz gold bars and 100 oz silver bars would be good for resale? What say you?

gsa1fan

1oz gold AGE's & 10oz silver. That's my opinion.

If gold goes higher smaller fractions may be more easy to sell.

Justacommeman

I like 80% gold for foundation and 20% silver for speculation............MJ

KUCH

<< <i>I like 80% gold for foundation and 20% silver for speculation............MJ >>



Smart!!! I think I like that too.

KUCH

Justacommenman, are you talking 80 - 20 rule in dollars or ozs?

tydye

Right now I am about 50/50. Been hitting the silver pretty heavy the last few months. But may lay off for a while and wait for a dip.

Justacommeman

<< <i>Justacommenman, are you talking 80 - 20 rule in dollars or ozs? >>


80/20 in valuation. So in dollars if that's your currency. All the best. MJ

roadrunner

I agree basically with Justacommeman that gold should be the larger net value % of the split whether one likes 3:1, 4:1, 5:1, etc.

If one looks back to the 1970's bull market gold outperformed silver from 1971-1978. It was only during 1979-January 1980 when silver went bonkers going from about $4 to $50/oz. It was sort of dormant for the bulk of the 1970's. It did however make a nice move from around 1962-1967 following the cessation of silver coinage. Much of the rise in 1979 was due to the Hunts shifting their sights on transfering all their Comex paper silver into physical silver as the FEDs started changing margin requirements, etc. Gold went through it's first up 2 legs (1967-69 and 1971-74) by outperforming silver. It did the same thing during a large % of it's third leg up (1977-1978). It's hard to say if silver will perform similarly this time around as physical silver was apparently far more plentiful in the 1970's than it is today. There are also no Hunt Brothers....at least not anyone showing a public face.

The gold to silver ratio went to a high in the later 1960's. But gold ruled the roost for most the 1970's. Silver outperformed gold for about 1 year at the end of each major up leg. So it depends where we are in these legs to determine when silver performs. Silver performed best during the blow off leading up to March 2008. It will perform similarly when the next major blow off top occurs.

silver to gold ratio chart

roadrunner

jmski52

I remember as long ago as the mid to late '70s that the story concerning the US stockpile of silver was that the 400 million ounces or so would be depleted in just a few years.

That depletion seemed to take longer than was originally projected. Ever since, the story about silver is that more silver is consumed than mined, mining of silver is mostly as a secondary product of lead or zinc or copper mining, that silver uses are mostly inelastic as to price, that the recovery of silver from most sources is negligible, and so on.

You would think that keeping track of the actual inventory of physical silver would be easy, yet it seems to be as elusive as ever. What gives? Are there really only about 600 ounces left, and the rest is just paper? So it would seem.

Konahead

2/3 silver 1/3 gold. looking for dips.