Buying Advice Please

cjmezz

Been around for awhile, just like to have your thoughts/advice on my next purchase.
I'm looking to spend about $9.000 in the next couple weeks on PM.
Currently have 26oz of Gold and 45oz of Silver (i know, a bit gold heavy!!)

What would you buy? I'm thinking 4oz of Gold and 55oz of silver to put me at 30oz and 100oz.
Don't have any plat or palladium

Thoughts/Advice please?
Thanks!
CJ

gecko109

I'd do 200oz of silver. You are FAR too gold heavy right now.

guitarwes

"I'm thinking 4oz of Gold and 55oz of silver to put me at 30oz and 100oz"


seems like a good round number and a good split.

gecko109

<< <i>"I'm thinking 4oz of Gold and 55oz of silver to put me at 30oz and 100oz"


seems like a good round number and a good split. >>




You think a 92/8 is a good split? If thats the case, why not just buy AGEs exclusively? They have a built-in 92/8 split!

guitarwes

Well, it seems that the OP likes gold over silver from what he's accumulated so far, so another nice little chunk of gold to bring his holding up to an even 30oz looked good. I was just giving my thoughts on the situation and putting in my .02 like he asked us too. There's a few variables to take into account that I don't know about the OP to make a better investor related opinion. (age, risk, likes, etc)

gsa1fan

6K gold 3K silver

cjmezz

i just feel i have missed the boat on silver, at $40 an oz, i feel im buying too high! $1450 for an oz of gold, doesn't seem that bad to me!
Im 27 years old, married with 2 little girls, live in the midwest.........and love gold!
Thanks for the advice soo far...keep it coming!

gecko109

<< <i>Well, it seems that the OP likes gold over silver from what he's accumulated so far, so another nice little chunk of gold to bring his holding up to an even 30oz looked good. I was just giving my thoughts on the situation and putting in my .02 like he asked us too. There's a few variables to take into account that I don't know about the OP to make a better investor related opinion. (age, risk, likes, etc) >>




Your statements are all true and valid.....but the key for any successful investment strategy is diversification. A 92/8 split by value is not diversification, and is not a "good split". Its more of a meaningless split more than anything else. At that ratio, his silver becomes almost inconsequential.....why even bother with silver at all at that point?

gecko109

<< <i>i just feel i have missed the boat on silver, at $40 an oz, i feel im buying too high! $1450 for an oz of gold, doesn't seem that bad to me!
Im 27 years old, married with 2 little girls, live in the midwest.........and love gold!
Thanks for the advice soo far...keep it coming! >>





"]i just feel i have missed the boat on silver, at $40 an oz"



Funny....my brother said the same thing at $20/oz.....then again at $30/oz.....and again about an hour ago at $40/oz. I politely told him we'll talk again when silver tops $50.

cjmezz

If you can assure me of that $50 mark Phil......i'll go pick up the silver right now!!

gecko109

<< <i>If you can assure me of that $50 mark Phil......i'll go pick up the silver right now!! >>





Can you be assured gold doesnt tumble to $1300 right after you buy $7,500 worth?

Steve27

The current gold/silver ratio is under 37; recently (within the last year) it was over 50. Thus, I would buy gold and not silver (if it was a choice between the two). You might also consider platinum, which has not experienced anywhere near the run-up as gold or silver. Check the charts on Kitco LINK.

cjmezz

I can't assure you anything Phil!! Just hoping you would have the answers for me!! (just teasin ya by the way!)

gecko109

<< <i>The current gold/silver ratio is under 37; recently (within the last year) it was over 50. Thus, I would buy gold and not silver (if it was a choice between the two). You might also consider platinum, which has not experienced anywhere near the run-up as gold or silver. Check the charts on Kitco LINK. >>





And for most of human history its been 16 to 1. Are we heading back to more historical ratios? I dont know.

gecko109

<< <i>I can't assure you anything Phil!! Just hoping you would have the answers for me!! (just teasin ya by the way!) >>





If you bought $9,000 worth of silver, you would have a pretty solid 80/20 split on the metals. If your goal is a 92/8 split, then I question why you even buy silver at all. Sure, SOME is better than none, but a 92/8 split is almost the same as a 100/0 split anyway.

About 3 years ago I was at 33oz gold and MAYBE 100oz of silver myself. I decided that I wanted diversification, and silver seemed to be a decent play. Today, Im at 22 gold and 1000 silver. Now im a little silver heavy, but im actively buying gold now to even it out. I can tell you that the transformation that I made from late 2008 to now has paid off very handsomely! Will that trend of silver kicking gold's ass continue? I think there's still plenty of legs left in silver! I will be absolutely shocked if we dont see $50 silver by thanksgiving.

gsa1fan

OK, so you buy 9K worth of silver now with GSR 37 to 1. By Thanksgiving GSR is 40 to 1 with silver at $50oz.

I know you will say what if it's 30 to 1. Buying at the current GSR factor aren't you just picking a favorite anyway?

JMO, gold has been simmering for awhile

roadrunner

I think we're too close to a gold to silver ratio turn here to be diving into silver at $39/oz. Ok so you have 5-15% upside and maybe 15-30% downside. Silver is a long ways
above it's 200 dma. If a financial shakeout comes by June, which seems pretty likely, gold will hold it's own a lot better silver. I'd wait until that next large correction in silver before buying in size. If you want to have some additional silver for a shtf emergency scenario then buy $500-$1000 worth. The 45 oz you have now wouldn't last long.

Besides looking at the potential upside in April and May, consider the potentially large downside sure to come in June-August. Good chance that will wipe out any silver gains between
now and then. Just a hunch. That's usually the best time to buy silver. I would not consider plat or pall...too many ties to the auto industry. They are nowhere near as liquid as gold and silver and the premiums work against you. Gold can and has equaled the price of plat in the past. Gold is your primary insurance PM and come early summer when the QE decisions are debated, we're probably going to see why. Silver has been on a tear since July. We're now into seasonal strength. But this season will end by June.

If you buy gold now, you can always move that back into silver later. In fact you should probably rebalance a bit on every swing high and low in the GSR. The next swing up should
probably take us to 40-50 imo. I would recommend a final mix of 50-50 to 80-20 gold to silver depending on your own preferences. But that doesn't mean you have to get there tomorrow. Silver should perform the best over the next few years so your present goal of 30 oz gold and 100 oz silver is pretty top heavy (90-10).

roadrunner

jmski52

You're ripe for platinum. It's price action is more like silver than gold and it's been lagging. My platinum and silver are balanced on a fulcrum of gold. It works good.

mkman123

buy a few fractional gold coins, many silver rounds and 10 oz bars, and a bunch of 90% silver coins/

morgantype

I would wager that you get more enjoyment out of gold. Given this I would go all in on gold, you should be able to make about 6 ounces with the 9 grand.

Also, considering you are young with 2 kids, you most likely are a long way off from selling and therefore this reinforces my choice for purchasing gold.

My 2 cents.

JCMhouston

Keeping in mind that very little of my investments are in PM's as a percentage, I don't have any issues being heavier in gold than silver. I am about 90/10 myself. I just like gold better than silver, the majority of my gold bullion is PCGS/NGC graded 20th C. Swiss and French 20 Fr. pieces, I don't mind paying 10-15% over spot for MS65 and 66 examples.