What should I buy: Gold or Silver?

cwazzy · February 24, 2011 4:23AM

So I've almost talked my wife into letting me spend about $3,000 on bullion. Originally I was going to do 2 ounces of gold. Then I was thinking of 1 ounce of gold and around 40 ounces in silver. Then there's the thought of buying around 80 ounces of silver. Which is the best route to go if my main goal is to hold the PM for about a year?

And can someone link me to the best article that talks about 2011 PM expectations so I can give her some reading material to back up my argument?

Thanks!

Ciccio · February 24, 2011 4:38AM

I would definitely diversify my purchase.
Mix and match is the key for a good investment.
Just for fun I broke your $3K in what I would purchase.

4 x 1/10 oz - Au
1 x 1/4 oz - Au
30 oz - Ag
1/2 oz - Pt

Here below are some links. Stick to the Forum and you will learn a lot from the forum members (the others, not me!)

Latest predictions
Official predictions
Jim Willie

57loaded · February 24, 2011 5:06AM

there are some good links already posted by some here. i like to go to safehaven. if i see something that is a TGTBT prediction, i will see all the posting by that author...some have an agenda............Also pick up "The Economist" it's (IMHO) one of the best rags out there and doesn't have an agenda (that i can see).

our CURRENT financial system cannot continue. Wall Street and the Treasury can only play in the sandbox with their rules for so long.

be sure your wife feels she is part of this process and if you can keep buying each month, remember it's not the cost. it's how many ounces you will accumulate over time.

there will be a time to unload but that isn't on the radar, at least for all here. i say all because MoneyLA is nowhere to be found ( i do hope he's okay though).

Steve27 · February 24, 2011 5:07AM

I use the 50X rule; if 50 times the price of silver is greater than the price of gold, then gold is a better buy and vice versa. However, at these levels, I'm selling not buying.

PinkFloyd · February 24, 2011 5:15AM

I may get flamed by the nay-sayers, but the ATB 5 oz. silver rounds represent one of the best investments in silver right now, IMO. They are being sold at bullion prices and are a relatively low-mintage collectable set. It would also add some diversification to your silver stack and they provide a bit of a safety net in case silver crashes.

You just can't get that much. One 25 oz. set (5 in each set) from each US Mint authorized purchaser.

A few APs probably still have a few left if you haven't purchased from them already. A little work than buying generics, but you might be able to get a few sets. They're still selling for 40% more on the secondary market if you need to get out quick.

gecko109 · February 24, 2011 5:24AM

<< I may get flamed by the nay-sayers, but the ATB 5 oz. silver rounds represent one of the best investments in silver right now, IMO. They are being sold at bullion prices and are a relatively low-mintage collectable set. It would also add some diversification to your silver stack and they provide a bit of a safety net in case silver crashes.

You just can't get that much. One 25 oz. set (5 in each set) from each US Mint authorized purchaser.

A few APs probably still have a few left if you haven't purchased from them already. A little work than buying generics, but you might be able to get a few sets. They're still selling for 40% more on the secondary market if you need to get out quick. >>

Bullion prices? Really? I pay spot + .75 / oz for silver at my local shops. Will you sell me an ATB set for the same premium?

Julio · February 24, 2011 5:26AM

"However, at these levels, I'm selling not buying. " Steve 27

Got to agree. Take care. jws

gecko109 · February 24, 2011 5:27AM

<< "However, at these levels, I'm selling not buying. " Steve 27

Got to agree. Take care. jws >>

Heard ALOT of that same talk with gold $1,000 and silver $22. Whatever.

PinkFloyd · February 24, 2011 5:30AM

<< 

<< I may get flamed by the nay-sayers, but the ATB 5 oz. silver rounds represent one of the best investments in silver right now, IMO. They are being sold at bullion prices and are a relatively low-mintage collectable set. It would also add some diversification to your silver stack and they provide a bit of a safety net in case silver crashes.

You just can't get that much. One 25 oz. set (5 in each set) from each US Mint authorized purchaser.

A few APs probably still have a few left if you haven't purchased from them already. A little work than buying generics, but you might be able to get a few sets. They're still selling for 40% more on the secondary market if you need to get out quick. >>

Bullion prices? Really? I pay spot + .75 / oz for silver at my local shops. Will you sell me an ATB set for the same premium? >>

By bullion prices, I meant comparable to 2011 ASEs from APMEX. The OP can do his homework, it speaks for itself. I'm moving onto more constructive shores.

gecko109 · February 24, 2011 5:38AM

<< 

<< 

<< I may get flamed by the nay-sayers, but the ATB 5 oz. silver rounds represent one of the best investments in silver right now, IMO. They are being sold at bullion prices and are a relatively low-mintage collectable set. It would also add some diversification to your silver stack and they provide a bit of a safety net in case silver crashes.

You just can't get that much. One 25 oz. set (5 in each set) from each US Mint authorized purchaser.

A few APs probably still have a few left if you haven't purchased from them already. A little work than buying generics, but you might be able to get a few sets. They're still selling for 40% more on the secondary market if you need to get out quick. >>

Bullion prices? Really? I pay spot + .75 / oz for silver at my local shops. Will you sell me an ATB set for the same premium? >>

Everyone's a comedian. By bullion prices, I meant comparable to 2011 ASEs from APMEX. >>

So you will sell me an ATB set for $894 then? Thats currently what 25 of the 2011 ASEs would cost via APMEX. Where do I send the check?

25 ASEs(2011) for $894

gsa1fan · February 24, 2011 5:38AM

90% gold ~ 10% silver = How I roll ~ JMO

jmski52 · February 24, 2011 10:16AM

cwazzy, I agree with Pink Floyd's suggestion to get a set of the 2010 Hockey Pucks, but I'd definitely wait for the upcoming release of the "P" mintmarked issue that will be sold directly by the Mint. It might cost between $1,200 and $1,400 but that is a guess. If your holding time frame is 1 year, that is the best recommendation I can think of, but frankly I'd hold these to maturity instead of just a year.

For gold, I'd pick a denomination or size, probably 1/4 oz., and I would start buying one or two 1/4 ozers periodically in order to start building a stash. 1/4 oz. is small enough to be able to add to the pile more often, and that is a good thing when you see the value of the pile increasing over time.

2010 Hockey Puck Collector Version Thread

yellowkid · February 24, 2011 12:52PM

I'm curious, why a year? I think the long term PM trend is up, but it could be a very bumpy ride. if this is money you are going to need in a year I would leave it in the bank.

cwazzy · February 24, 2011 1:28PM

<< I'm curious, why a year? I think the long term PM trend is up, but it could be a very bumpy ride. if this is money you are going to need in a year I would leave it in the bank. >>

That's a good question. Right now the money is just sitting in the bank earning .1% interest. So it's basically staying just sitting there gathering dust. We will be looking for a new home starting next year so the plan is to invest in PM short term, hopefully take a small profit, and cash out to add to our downpayment.

JeremyDie1 · February 24, 2011 1:50PM

I would cost average. I would not put all your available money down on one purchase. Buy from reputable dealers from ebay with free shipping a plus.
I would take it slow and buy maybe a 1/4 oz of gold or 10 oz of silver every couple of weeks. Read the boards and try to get a feel on the PM market in the mean while. And try to resist the urge of browsing ebay for cards for your collection!

MsMorrisine · February 24, 2011 2:18PM

<< 

<< I'm curious, why a year? I think the long term PM trend is up, but it could be a very bumpy ride. if this is money you are going to need in a year I would leave it in the bank. >>

That's a good question. Right now the money is just sitting in the bank earning .1% interest. So it's basically staying just sitting there gathering dust. We will be looking for a new home starting next year so the plan is to invest in PM short term, hopefully take a small profit, and cash out to add to our downpayment. >>

then I'd leave it right there.

indiananationals · February 24, 2011 2:29PM

not that i see it happening but what if pm,s crash then u are in trouble if u need that money .....if u are not willing to sit back and wait i would stay out ...my timeframe is 20+ years dont let the drops worry you that is buying time

meluaufeet · February 24, 2011 2:48PM

Edited to delete stuff you probably already thought about.

I'll just answer the question... silver

Eric Sprott - "The investement of the next decade"
Eric Sprott: The Government Lied...

Not the best article, but a partial list of forecasts:

Gold Price Forecasts 2010 2011 2012 and beyond - Gold in Mind

RedTiger · February 24, 2011 3:09PM

<< 

<< 

<< I'm curious, why a year? I think the long term PM trend is up, but it could be a very bumpy ride. if this is money you are going to need in a year I would leave it in the bank. >>

That's a good question. Right now the money is just sitting in the bank earning .1% interest. So it's basically staying just sitting there gathering dust. We will be looking for a new home starting next year so the plan is to invest in PM short term, hopefully take a small profit, and cash out to add to our downpayment. >>

then I'd leave it right there. >>

If it is house money that you need in a year, I agree, leave it in the bank. The zero interest rate is gauling but it will be nothing compared to the rollercoaster that silver might give you. A person asking strangers for advice, after having talked their wife into putting money into gold or silver is on extremely shaky ground. If it tanks the wife may let you have it with both barrels and wives tend to have very long memories. For what? The possibility of a few hundred dollars in profits? Say it does absolutely fantastic going up 25% or 30% and you net 20%, that $600 won't be appreciated and makes close to zero difference on a house, unless it is an extremely modest house. Even if you make a bit, a fair share will be given back in spreads to the dealer. If it doesn't move the transaction cost is still there and likely subtracts 5% or more from the nest egg.

This is not a low risk time to be buying. It is one thing for "roll the dice" money, or diversification money, quite another for money that will be needed in a year. It isn't worth risking what will be a terrible marriage argument for what optimistically would be a small to modest profit in a year.

Konahead · February 24, 2011 4:02PM

<< I may get flamed by the nay-sayers, but the ATB 5 oz. silver rounds represent one of the best investments in silver right now, IMO. They are being sold at bullion prices and are a relatively low-mintage collectable set. It would also add some diversification to your silver stack and they provide a bit of a safety net in case silver crashes.

You just can't get that much. One 25 oz. set (5 in each set) from each US Mint authorized purchaser.

A few APs probably still have a few left if you haven't purchased from them already. A little work than buying generics, but you might be able to get a few sets. They're still selling for 40% more on the secondary market if you need to get out quick. >>

And add some gold and you are off to a good start

Durexmetals · February 24, 2011 10:36PM

Gold is Insurance on your wealth

Silver is how you build wealth

in 2010 Gold increased by 27% -

in 2010 Silver increased by 80% -

You need both - but remember think long term - Your an investor not a speculator or day trader!

POP QUIZ - What commodity outperformed Gold, Silver, Platinum, and Palladium from 2009 to Now?

Answer: Sugar (up 146%)

Thought that was a fun fact!

1201reset · February 25, 2011 1:52AM

I support leaving the money in the Bank.

Physical Gold and Silver should be held a minimum of three years,
preferably longer.

_Reset

mkman123 · February 25, 2011 2:05AM

Get a few 1/10th eagles, a 1/4th gold eagle and the rest on 90% silver

pitboss · February 25, 2011 2:39AM

Buying silver only because I can afford it.

yellowkid · February 25, 2011 5:28AM

<< 

<< I'm curious, why a year? I think the long term PM trend is up, but it could be a very bumpy ride. if this is money you are going to need in a year I would leave it in the bank. >>

That's a good question. Right now the money is just sitting in the bank earning .1% interest. So it's basically staying just sitting there gathering dust. We will be looking for a new home starting next year so the plan is to invest in PM short term, hopefully take a small profit, and cash out to add to our downpayment. >>

This is a great time to be buying a home, assuming of course that you either have the money or can get a loan. Leave that money where it is, maybe in a year you could make a bit on a PM "play," and that's what it would be with your short window, but PM's could be down when you saw that house you want. Instead take a few bucks a week if you wish, and buy some silver every time you get paid. Almost all of us can find a way to free up a few dollars, that way you know you will have some money when the time comes, and if PM's keep going up you will have made some money on what you are buying on a cost averaging basis.

tincup · February 25, 2011 5:33AM

Sorry man... but IMO you are not in a position to be jumping into precious metal gambling, if that money is already earmarked for specific use in a year's time.

But, if you absolutely feel you need to participate somehow... I would wait for those 2010 collectors version hockey pucks to be issued by the US Mint. (if they ever are)

If you would be able to score some of these, that would be about as good of a lock on profit for your money as anything else out there. With an expected 27,000 mintage, these should be able to be flipped within a year into a pretty hot market. Especially so if the Mint issues them as single coins instead of a set. In worst case scenario, you will have 5 ounces of silver per coin that you can sell for. So, downside would be limited.... but some very good chances at a significant profit.

Even then, I would not spend all of the savings for the items.

Do not do bullion until you have the cash that you can live without... and are able to ride through any periods of adjustments. We've seen some stories on forums where individuals ended up getting the short end..... ......by doing what you want to do.

Baley · February 25, 2011 5:38AM

If it is house money that you need in a year, I agree, leave it in the bank. The zero interest rate is gauling but it will be nothing compared to the rollercoaster that silver might give you. A person asking strangers for advice, after having talked their wife into putting money into gold or silver is on extremely shaky ground. If it tanks the wife may let you have it with both barrels and wives tend to have very long memories. For what? The possibility of a few hundred dollars in profits? Say it does absolutely fantastic going up 25% or 30% and you net 20%, that $600 won't be appreciated and makes close to zero difference on a house, unless it is an extremely modest house. Even if you make a bit, a fair share will be given back in spreads to the dealer. If it doesn't move the transaction cost is still there and likely subtracts 5% or more from the nest egg.

This is not a low risk time to be buying. It is one thing for "roll the dice" money, or diversification money, quite another for money that will be needed in a year. It isn't worth risking what will be a terrible marriage argument for what optimistically would be a small to modest profit in a year.

once again, RedTiger (and others who said, leave the money in the bank) is right on, imo

how you going to feel if the metals decline in your one-year time frame (after going up for 10 years in a row)?

cwazzy · February 25, 2011 6:02AM

Sorry guys. I guess I should have been more clear. We're not talking my life savings here. When the time comes we would be able to get a new house whether we had this money or not. If I've lost my ass on the investment in a year I'll just let it ride. But if I can make a little profit then I'm also not afraid to sell. I'm not foolish enough to deplete my rainy day money on a short term investment. I just thought that with silver and gold trending up fairly rapidly and most of the analysts predicting close to $50 silver and up to $2,000 gold that it might be a decent short term investment. But I've been wrong before.

What should I buy: Gold or Silver?

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