What ratio gold/silver/other

[newton7]

I started this post asking why some members were leaning towards gold right now but did not get much response. Then my friend asked me what ratio should he adding to his stack and I really did not have an answer. I have my ratio but it is not based on any real math ratio. So I thought I might throw it up here and get your response. Here I see a lot of silver people but on BS.com there are both and on the Kitc there are strong gold bugs.

Hypothetically, If you were buying both, what ratio would you use to add to your stack?/

I have been seeing more than one silver person looking at gold recently which got me thinking. What is your formula for when to buy gold vs silver?. I have bought both in the past for various reasons but when and why do you buy one over the other?

Ratios? Numbers? Market indicators?

I would describe myself as strong on silver for my own reasons. What are yours?

[inflationhawk]

Depends on how strong the economy is. In a stronger or improving economy, I'd buy silver over gold. If the economy is stagnant or likely to decline, I'd buy gold. Silver has more industrial demand than investment demand.

[newton7]

Changed the question. see the blue.

[beauanderos]

It depends on alot of variables, in order to address this question. The most important one is how much discretionnary income can you throw at it? Also, are you trying to "invest" or save? On this site, as you have noted, there are more silver bugs than gold, and I would surmise that is because this started off as a copper-sorting site... "poor man's silver." Alot of the members here, as aware as they are as to the rationale for saving REAL money outside of the banking system... are of limited means. Thus, those so constrained, would likely gravitate to silver and accumulate the more affordable metal before moving on to gold. The first step on the gold ladder, grams or 1/10 oz form, carries a hefty premium, so that's another deterrent. People feel like they get more for their money with silver, rather than gold. Someone with a large income, however, would likely rather purchase gold, as silver is harder to amass and store when you're talking several thousand dollar quantities. You can start 1:1 to cover the bases via asset allocation, and then favor one or the other as you learn more. When you aren't busy earning and burning (spending)... spend time learning. Or yearning

[balz]

It depends what you believe will happen.

In my case, I believe in silver.

I believe in silver as the ultimate hedge. Silver will go to the moon if the system collapse completely. It would then be the old silver coins back in circulation with a vengeance.

However, if one believe that the system will not collapse, gold is a good choise. But... BUT if the system doesn't collapse, it will be in great trouble and gvt. might go for your gold again (confiscation) or tax it without any mercy.

[68Camaro]

At moment I am roughly 2:1 silver/gold by current value. 70:1 by mass. This seems to me to be an appropriate ratio of wealth preservation vs risk, for me, but each will have their own ratio that suits their needs. There isn't a common solution.

[Lemon Thrower]

i have slightly different ideas.

i think ultimately gold will go to the moon. this is highly likey, because central banks will buy it. they are not buying silver (yet). it remains to be seen in they will.

i have some gold so i'm ok but i do agree that the potential with silver is greater.

however, once the GSR gets to 20 or so i'm trading for gold.

i subscribe to the FOFOA view that there will be a once in a lifetime revlation of gold v fiat to 5 digits and while other real assets will benefit they will do so at a fraction of gold's increase. i think this is a ways off though. this is the volcker moment a la 1980 at the end of the cycle. we are not there yet. we're at roughly 1974.

[Mossy]

If someone is bugeting a fixed amount per month for PMs, easier to come close to that with silver than gold. Of course, you might buy mainly gold and pad with silver, up to you.

[68Camaro]

i have slightly different ideas.

i think ultimately gold will go to the moon. this is highly likey, because central banks will buy it. they are not buying silver (yet). it remains to be seen in they will.

i have some gold so i'm ok but i do agree that the potential with silver is greater.

however, once the GSR gets to 20 or so i'm trading for gold.

i subscribe to the FOFOA view that there will be a once in a lifetime revlation of gold v fiat to 5 digits and while other real assets will benefit they will do so at a fraction of gold's increase. i think this is a ways off though. this is the volcker moment a la 1980 at the end of the cycle. we are not there yet. we're at roughly 1974.

That may be further in the future, but I tend to agree. Gold has tended to be more stable and more highly regard than any other PM over millenia, so when the GSR approaches the long term norm I would trade most of my silver for gold. (I don't see anything changing that, but one does have to constantly reassess. If some new process is invented that requires silver to process nearly free energy from sun or seawater, then all bets are off!)

[Lemon Thrower]

my theory is that silver has been suppressed and the market is re-monetizing it. this will push it towards GSR 16.

the wildcard is if the world has a rickards or fofoa style revaluaion of gold before Silver hits 16 gsr.

[mtalbot_ca]

I do not know what my end target is so I simply try to do:

1-1-1-1 (value wise) on .999 gold, .999 silver, .999 nickel, .98 copper

Cheers,

[justj2k78]

There is no method to my madness, but again, I consider this a hobby - this is not my retirement savings, so it's not life or death. That allows me to get what I like. I'm heavily weighted to silver right now, for absolutely no good reason. How's that for an answer?

[newton7]

Good answer. I would have to say I to have this as a hobby more so than retirement. But if I can have two retirements, why not? Thanks for the answers

[Lemon Thrower]

if you look at the gold to silver ratio, it will give you an idea as to whether gold is cheap or expensive relative to silver. right now, i view gold as rather expensive since it costs more than 50 ounces of silver.

[68Camaro]

if you look at the gold to silver ratio, it will give you an idea as to whether gold is cheap or expensive relative to silver. right now, i view gold as rather expensive since it costs more than 50 ounces of silver.

Or, whether silver is cheap or expensive relative to gold. Right now I view silver as cheap relative to gold, since you can get more than 50 ounces of silver.

[balz]

i have slightly different ideas.

i think ultimately gold will go to the moon. this is highly likey, because central banks will buy it. they are not buying silver (yet). it remains to be seen in they will.

i have some gold so i'm ok but i do agree that the potential with silver is greater.

however, once the GSR gets to 20 or so i'm trading for gold.

i subscribe to the FOFOA view that there will be a once in a lifetime revlation of gold v fiat to 5 digits and while other real assets will benefit they will do so at a fraction of gold's increase. i think this is a ways off though. this is the volcker moment a la 1980 at the end of the cycle. we are not there yet. we're at roughly 1974.

I think there is a flaw in FOFOA's view. His idea is that we do not need two stores of value and the ultime one is and should be gold. To this point, I agree with him.

However, we are facing a total collapse not only of money by itself, but for what it represents, that is, ENERGY.

Going from a more complex form of society to a less complex one will be so difficult for people that they will not have any confidence in any kind of new complex organization, not talking about the fact that we don't have the energy to keep it working. Basically, they will rejet any kind of paper/electronic money linked to gold because they will not have any confidence in that system after been screwed. So we might see the return of real money in real hands, that is, silver.

I know I don't write very well so maybe my idea is not clear. What I really mean is that keeping with a gold only standard as a store of value is something fairly complex while having people going around with silver coins, as they did for 2000 years, is more easy. This is why I believe silver will outperform gold.

[Mossy]

My target "ratio" is about 5# silver and the rest in gold. Why? A Jewish refugee from Europe was supposed to have said something like "The only wealth you can rely on is what you can carry while running for your life." I'm not going to need to do that, but I might need to relocate for medical reasons, and I'm not really interested in trying to move any more wt than that.

I will, of course, keep an eye on the Au/Ag price ratio and modify accordingly.