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jechilt
25th November 2008, 11:50
hi. I have been looking for a good source to get gold and silver information. I stumbled across SilverSeek and like what I have seen in the forums so I thought to sign up and get involved.
I don't have any silver company stocks but I have an account with GoldMoney and I am going to be buying some silver and having them store it.

I thought I would ask the for your thoughts on silver pricing. I was hoping to get silver when it was under 10 and then got a little nervous when it went over 10 because there is not enough evidence that silver has made the turn at the bottom and is going to head back up. I am wanting to position myself with gold and silver to protect myself from inflation and the crashing economy.

Do you think Silver has seen its bottom floor price and we are looking pretty stable to make silver a solid buy at this point?

I look forward to hearing your thoughts...

Greaves
25th November 2008, 12:10
No one can really know when the bottom floor has been hit. Some think it has, some do not.

I believe that a person needs to be in these markets and not try to swing trade it every second week. Buy whenever you can, and go long because when these markets break free you definitely won't be worrying if you paid an extra dollar per ounce.

LETMYSILVERGO
25th November 2008, 12:25
just buy it, don't be a woos, it's dirt cheap, and if your getting less than 2,000 oz, you really not invested in silver... just my thoughts

jechilt
25th November 2008, 12:27
greaves, thanks for the response.
I am not going to be doing any silver ETF purchases. only real metal purchases. I am also not going to be doing any "swing trading". I just want to get in and hold it for stability. If there is any profit potential, then I will roll the profits into silver mines....at least that is the current plan. :)

GraysonDave
25th November 2008, 12:29
No one can really know when the bottom floor has been hit. Some think it has, some do not.

I believe that a person needs to be in these markets and not try to swing trade it every second week. Buy whenever you can, and go long because when these markets break free you definitely won't be worrying if you paid an extra dollar per ounce.

This is good advice. We're just small fry in this massive economy and it is impossible to know whether we are at a bottom. Most people who buy precious metals aren't doing it because they think it's the next "hot" investment sector. They are doing it to preserve whatever wealth they have accumulated. I say buy what you can, when you can. At some point you or your children will be happy you did.

jechilt
25th November 2008, 12:31
just buy it, don't be a woos, it's dirt cheap, and if your getting less than 2,000 oz, you really not invested in silver... just my thoughts
I am buying gold and silver. I guess I am not a serious investor because I am only looking at getting 1500 oz initially. I am just looking to diversify my bank savings account into something more stable that has long term stability. Most of my money is going into gold but I have a percentage of it going into silver because I think it is a better buy (has a greater multiplication factor).
While I am looking for a "safe haven", I like the prospect of having some profit potential...

Greaves
25th November 2008, 12:40
I am buying gold and silver. I guess I am not a serious investor because I am only looking at getting 1500 oz initially. I am just looking to diversify my bank savings account into something more stable that has long term stability. Most of my money is going into gold but I have a percentage of it going into silver because I think it is a better buy (has a greater multiplication factor).
While I am looking for a "safe haven", I like the prospect of having some profit potential...

Most analysts say silver will outperform gold in the long haul. To me it doesn't matter if a person owns gold or silver, either way you are in good shape. Congratz on actually pulling the trigger because I find that most people are to terrified to sell their RRSP, mutual funds or stocks and move it into bullion.

Cash, gold, and silver. IMO this is where people need to park their wealth for now.

jechilt
25th November 2008, 12:47
Most analysts say silver will outperform gold in the long haul. To me it doesn't matter if a person owns gold or silver, either way you are in good shape. Congratz on actually pulling the trigger because I find that most people are to terrified to sell their RRSP, mutual funds or stocks and move it into bullion.

Cash, gold, and silver. IMO this is where people need to park their wealth for now.
Thanks for the vote of confidence Greaves. I have lost all confidence in US cash so not only have I moved out of paper securities, I am moving out of USD cash savings. I think the USD will deflate, thus the move to metal.

I have seen a lot of articles that say silver will out perform gold. Instead of a 60/40 gold/silver split, you think it would be better to go 40/60 gold/silver split?

Greaves
25th November 2008, 12:54
Thanks for the vote of confidence Greaves. I have lost all confidence in US cash so not only have I moved out of paper securities, I am moving out of USD cash savings. I think the USD will deflate, thus the move to metal.

Yeah I think many people are losing confidence in the USD as well as other currencies. I say this because all governments are starting this "race to the bottom" by slashing interest rates and firing up various stimulus packages. You cannot trust a government that does this. There are articles posted here (usually by Mick Silver) from Bloomberg & Reuters where the US govt/the Fed are going to basically drop money from helicopters to kickstart consumption. This is completely insane. Only a fool would be long the dollar or stock market.

As for my statement of cash, gold and silver. When I talk about cash I mean enough cash to meet your day to day needs. Definitely do not keep savings in USD.

The ratio split between gold and silver is a personal thing. How much gold and silver do you want to own is basically up to you. I support 100% gold, 0% silver or 0% gold, 100% silver. Both to me are great! Just depends what you want/need. Do you have a safe to store massive amounts of silver? Silver is more volitile, does this bother you? Etc. It doesn't really matter, just get your wealth away from those pinstripe bandits!

jechilt
25th November 2008, 13:13
It seems to me that if I want to have a hope of some profit in order to diversify into silver mines, then I should increase my split to the silver side.

Although I am new to this forum, I am pretty excited about silver, especially considering the priority that Obama is putting on his recovery plan. For energy, the talk of the hour is solar power. Solor power....wooo hooo for silver! Thus, my optimistic outlook on silver mining to meet the demands of the new clean energy future.

jechilt
25th November 2008, 22:24
i have been struggling all day long with the issue of what split to buy on gold/silver.
I like the idea of having more leverage with silver and I think there are a lot of reasons to have it. It certainly offers a bigger multiplier than Gold...so, I struggle with the ratio
gold 60% silver 40%
gold 50% silver 50%
gold 40% silver 60%

Due to silver volatility, I am thinking G60/S40 but because silver has a better mutiplier, I am thinking of just going 50/50.

Anyone have any additional thoughts for me to consider?

LETMYSILVERGO
25th November 2008, 22:55
think ouside the box...go 140 percent silver, and 60 gold, that way you will have more....or do what i plan..WHICH IS NOT TO STUPID..wait till the silver , gold ratio, gets say 20 to 1, then trade some silver for gold, be easier to move around... and then you'll have some REAL GOLD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

jechilt
25th November 2008, 23:08
think ouside the box...go 140 percent silver, and 60 gold, that way you will have more....or do what i plan..WHICH IS NOT TO STUPID..wait till the silver , gold ratio, gets say 20 to 1, then trade some silver for gold, be easier to move around... and then you'll have some REAL GOLD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I assume you meant 40/60, not 140/60 :)
Are you thinking that Silver will outpace gold to a 20:1 ratio? that is pretty serious. I was thinking the exact same thing you mentioned....to allow silver to grow and then slowly sell it off and put the money into gold. if this is the case, why not go 60 silver, 40 gold?

I went ahead and made my purchase. I did 55 silver/45 gold split. When more funds are available, I might pick up more silver...

thanks all who replied!

One_of_Many
26th November 2008, 02:11
jechilt First of all, welcome to the group. :)
Second, read the third post in this thread. http://forums.silverseek.com/showthread.php?t=366
Some excellent advice and things to consider when investing in pm's there.

You sound like you are pretty well educated as to the state [and fate] of the US dollar, and your reasoning to avoid ETF's is sound. But is investing with a company like goldmoney safer than ETF's? Personally, I don't think so. You must put your faith in them telling the truth about what is really in their vault. Not a lot of truth out there these days, is there? :confused: Goldmoney has a good rep from what I have heard and there are forum members here who believe in them wholeheartedly. But... as many people here say "if you don't hold it, you don't own it". I agree with that.

Which to invest in, gold or silver? Lots of views on that so here is one more. I see gold as being the best for preserving wealth and second as an investment vehicle. Silver I see the other way around. Silver is much more volitile than gold and tied to the economy and industry in ways gold is not. A quick look a the past years charts shows that gold has held up much better than silver in price. Gold is the winner for wealth preservation in 2008.

You mentioned solar power. I read an article a few days ago about the increased demand for solar power and that the use of silver by the solar power industry has more than off set the drop in demand by the photography industry since 2000. Sales of solar power systems in 2007 was 10% of what it is projected to be a decade from now. This is just one of many examples of silvers real world uses gold does not have and why I see it as the better investment.

Personally, I doubt we will ever see a ratio of 20:1 for silver and gold. I hope so but... I can see it returning to returning to a more histroical ratio of around 50:1 in the not to distant future. That alone leaves a pretty good profit to be made from todays near 80:1 ratio

Oh, and 1500 oz's sound like a pretty serious investment to me. Thats twice what my first buy was.

that's my two pence worth
Cheers

jechilt
26th November 2008, 06:53
jechilt First of all, welcome to the group. :)
Second, read the third post in this thread. http://forums.silverseek.com/showthread.php?t=366
Some excellent advice and things to consider when investing in pm's there.

You sound like you are pretty well educated as to the state [and fate] of the US dollar, and your reasoning to avoid ETF's is sound. But is investing with a company like goldmoney safer than ETF's? Personally, I don't think so. You must put your faith in them telling the truth about what is really in their vault. Not a lot of truth out there these days, is there? :confused: Goldmoney has a good rep from what I have heard and there are forum members here who believe in them wholeheartedly. But... as many people here say "if you don't hold it, you don't own it". I agree with that.

Which to invest in, gold or silver? Lots of views on that so here is one more. I see gold as being the best for preserving wealth and second as an investment vehicle. Silver I see the other way around. Silver is much more volitile than gold and tied to the economy and industry in ways gold is not. A quick look a the past years charts shows that gold has held up much better than silver in price. Gold is the winner for wealth preservation in 2008.

You mentioned solar power. I read an article a few days ago about the increased demand for solar power and that the use of silver by the solar power industry has more than off set the drop in demand by the photography industry since 2000. Sales of solar power systems in 2007 was 10% of what it is projected to be a decade from now. This is just one of many examples of silvers real world uses gold does not have and why I see it as the better investment.

Personally, I doubt we will ever see a ratio of 20:1 for silver and gold. I hope so but... I can see it returning to returning to a more histroical ratio of around 50:1 in the not to distant future. That alone leaves a pretty good profit to be made from todays near 80:1 ratio

Oh, and 1500 oz's sound like a pretty serious investment to me. Thats twice what my first buy was.

that's my two pence worth
Cheers

Thanks for the info! I feel pretty good about taking the leap from USD cash to a physical asset. I still have a few K laying around in different bank accounts and I am thinking to go ahead and move it all into metal also. Because I am more speculative than conservative, I will most likely get silver.
The beauty of not relying on past performance for future trends may work in the favor of silver in the immediate future. As electric cars and solar development and the sort continue, the metal will be needed. I think it has a lot of potential to become quite valuable.