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Painthappy
9th December 2008, 22:25
I'm having an internal dilemma...

I'm planning on making my monthly purchase in about a week and so far I've been stacking silver.

But should I move on to Gold, or still stack silver?

I'm not big into ratio's, and I really prefer silver overall, but it also bothers that I don't have much gold.

So I'm beating up myself trying to come to a conclusion.

So if you had $5,000 to put into something next week, what would you do with it?

main1event
9th December 2008, 22:30
With $5000.00 I'd buy silver. I'd buy 100 oz bars which are running about 1.50 over spot right now.

goldragon
9th December 2008, 23:07
i would buy SLW. after two months you double your money!
my 2 cents.:D

ascentient
10th December 2008, 00:08
Painthappy - I buy about that much each month. My strategy is about 30% gold (Eagles or Krugerrands, although bars are fine) and 70% silver (100oz bars from ebay). I do this because my ultimate goal is to own GOLD not silver. Yep I just said it everyone. Deal with it. :P

Gold is the ultimate money. Silver is a monetary commodity secondary to gold with industrial uses. It also has SIGNIFICANTLY more upside than gold right now (which also has large upside) so I plan to use it to leverage more gold in the future. Given gold is my ultimate goal I should have *some* of that in my portfolio at all times as I *measure* my portfolio in "relative gold ounces" rather than "fiat dollars". In those units my portfolio is small as I only have a small amount of gold and a lot of "risky silver" that I may or may not be able to trade for gold. As you can tell, I think that the risk is low.

That's my advice. If, however, you measure your portfolio in silver, then just buy silver. I don't see any commodity or item with more upside to it (except oil) that you can control (unlike oil).

If you measure in dollars, then wish on a star. Eventually you'll be a billionaire and it won't mean a thing. Before that happens though, silver will probably get you there fastest (although gold will likely increase in price prior to silver, so a mix should suit you).

I hope that makes sense.

skijake
10th December 2008, 00:32
Gold is on sale right now.
Silver is on clearance sale right now!
80/1 ratio
My take is one ounce Gold, the rest in Silver. Good luck!:)

MikeJ
10th December 2008, 01:11
I wouldn't buy the 100 oz bars if you plan to invest for the long term. You will pay tax on each transaction if its over $10,000 when you sell. I would stick to 10 oz or less so 10 oz bars, 5 oz bars, 1 oz bars and rounds, etc.

ascentient
10th December 2008, 08:01
Will pay? *Should pay*...

Painthappy
10th December 2008, 08:03
Thanks ascentient, that's pretty much my philosophy right now too. My end game plan is to own gold (hence why it bothers me) but I see much much more movement in silver right now and why I'm stocking up on that.

Thanks for the fireside chat folks.

duneyman
10th December 2008, 18:58
As we all I have seen in the past few months, gold, although disappointing for sure ,does indeed hold its value in a financial crisis more than almost anything else ( including silver ) so I would advise you to buy plenty of gold as well as silver.

Argentum
10th December 2008, 19:05
For a longer, safer play I put my daughters education fund in gold, as well as some of my wife retirements. The rest is in silver, so about a 25/75 G/S play for me right now.

Then there is that odd plat and pally stash I have, but lets not bring that up :roll:

nuslvrkwen
10th December 2008, 19:19
If I had $5K to spend next week; I'd buy gold bullion and some Canadian gold $5 pieces. I'd buy them in person, not online. They are the size of a nickle and are going for around $55 - 60 each now. I bought some from BD over two months ago (at $52 each), and when I sold them I made $12 on each. I'd only held them for less than a month! I'm back into buying physical coins and bullion monthly with cash. So next year; I plan to collect 'nickles and dimes' meaning small denominations of gold coins because the resale value/exchange is great and it looks like not alot of people are selling those small amounts on the open market.

Last year I started my 'investing' with a 1 ounce gold coin. Watching the price movements in silver made me buy silver. That same coin has only lost $350 in value this year. Less than 1/3 what I paid for it. Silver lost 50% after the rise in March. So buying what I could for the amount I spent for the gold coin; I LOST $750! holding silver bullion...

Now, with all that's happened with the economy - there's still no way I'd sell all my silver bullion! It's MONEY. The big banks are treating it that way. They don't short nearly as much gold as they do silver. It's all for fast cash.

research24
10th December 2008, 20:56
I certainly agree with that. I should have bought more gold . . . its just that for such a large price you get such a puny amount! I did Krugerands in the 1970's and had stacks of them. This stupid emotionalism led me astray, as emotions always do. Sigh.