Gold or Silver %'s, safer bet
akuracy503
Posts: 1,923 ✭✭✭
Ok, i'm going to come off as a total newby to the precious metals market here coming from the cardboard hobby.
I am looking to buy a small reserve of PM's and cannot decide if Silver or Gold would be the safer investment.
Which has less risk involved with economic and global circumstances, less fluctuation, more return.
I know the general rule of thumb of $10k and below budget go with silver, above go with gold opinion.
Best avenue to purchase these bars or coins?
I truly appreciate the feedback.
I am looking to buy a small reserve of PM's and cannot decide if Silver or Gold would be the safer investment.
Which has less risk involved with economic and global circumstances, less fluctuation, more return.
I know the general rule of thumb of $10k and below budget go with silver, above go with gold opinion.
Best avenue to purchase these bars or coins?
I truly appreciate the feedback.
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Comments
Imo gold offers the least risk right now, at least until silver eventually cools off from this current run. Silver has much greater downside risk in case a pullback occurs...probably twice the risk that gold does. Considering that the gold to silver ratio has run straight down from 68 to 46 over the past few months, I'd give the nod to gold. It certainly has less risk, and will still provide an ample long term return. If you don't mind waiting 3-5 yrs and weathering some big pullbacks, silver should do the best. But your knees will be shaking on some of those pullbacks.
Back when the gold to silver ratio was 68 was when silver was the far better play in the short to intermediate term.
You should probably have a combination of both. Buy on the dips. Silver had a nice one when it went back to $25. I prefer sovereign gold/silver coins over bars, rounds, etc.
roadrunner
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I would recommend buying 5 or 10 gram perth mint gold bars with assay certificates
APMEX
I wouldn't totally write off silver, but gold is the safest.
Let's talk about risk. Risk is defined as volatility in the field of financial analysis. Risk isn't about winning or losing. Money management is about winning or losing. Roadrunner is correct in suggesting that you buy on dips. That's not as easy as it might appear, but it's a good idea anyway.
It's just as important to know that you are ready to commit money to precious metals as a savings plan or as an insurance measure as it is to attempt to mitigate risk or to "buy right". Know why you are buying precious metals and don't forget the reasons.
It's a marathon, not a sprint. Precious metals, in this environment, will eventually save your bacon. Start reading. Learn to survey the financial landscape on your own terms and in the light of your own situation. Repeat this mantra, "the dollar is losing value every day".
Good Luck!
I knew it would happen.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
My wife did that with 300 ASE's in tubes @ $16+ a copy and 5 Pamp wrapped 1oz bars to equal 10K. The ASE's have doubled and the Pamps have increased by 1/2. She's not a bug but saw me stacking and talking about it for a few years and decided to take the plunge. Now, I can't get her to let go of it.
"If you gotta have silver at these prices I'd go with 90% US coins."
I like 90% too. The nice thing about 90% is that it is still available in quantity, it's readily recognizable by everyone and you can usually get it under spot. The trouble w/90% is it takes up a lot of space; the good about it is it sure looks cool. The thing I like about the quarters and halves is it reminds me of when we used to have a couple of walkers and a few washies rattling around in out pockets at any given time, as change. The availability of 90% will likely change at some price point where people offer up their 90% to the dealers to be melted and then we will witness the second "great melt" and what you have managed to keep will be a little rarer.
The best advice to offer is to get what you like but do get some. It isn't for flipping, it's for stacking and hoarding sans a little bleeding off some for profit every now and then.
ASE's & AGE's are what I recommend to every one ~ just starting.
May not be the best/cheapest buy but there will be no problem selling when you want to sell.
Tulving Is great for bigger buys. AMPEX & Gainsville are easier to buy from = smaller amounts.
Gold is short term insurance that will protect your money over the near term when we have inflation.
Everyone should keep some gold all the time and it should be at a maximum %age at this time. Sil-
ver could explode at any time but it might be years. Roll the dice and take your chances.
Melting of 90% silver coins may already be happening. A local dealer says the public is selling much more than it is buying, and most buy prices I see are below melt.
Re diversification, a fractional Platinum Eagle or two might be a nice addition to the stash.
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