Gold or Silver?

[ThePiousPriest]

So I am wondering what you all would suggest for an investment. I can either invest in 1 oz of gold or multiple ounces of silver. What are your outlooks for gold in the next few months as well as silver?

 

[Original_Intent]

I hate to say it, as I am a hardcore silver bull/bug - but gold will probably do better as the market collapses. I still think long term silver will do far better, but as long as it is seen as mostly industrial and non-monetary - silver is going to be much more tied to the fate of the stock market, I think, and gold will be considered more of a flight to safety.

Long term I think it has to trend toward a 20:1 ratio or even 10:1 - so it all depends how long you are planning to hold. Mayve get a 1/2 oz gold coin and the rest in silver?

 

[wannaberocker]

Now let me start out by saying that im not a financial investment expert. However, it does seem like alot of the money is going into gold its $ 1700 right now. Silver is down over the past couple of days which they say is because of industrial slowdown. I know when gold was 1500 and they said it will go up to 1700 and i thought "it cant go that high". But its at 1700 now. So if i were you id go with Gold, simply because its not something thats dramitically gonna lose money one day. It will always have some value.

 

[wgadget]

Yes.

 

[ILUVRP]

i think you have to think of the world , not just the US , the only ones that think silver has a big value is america , the rest of the world says when things get tough get your gold and run. its gold , not the miners or silver.

 

[Bossobass]

Since the last financial meltdown, silver has handily outperformed gold, industrial use jargon notwithstanding. (Sept '08 silver = $10, Aug '11 silver = $40... Sept '08 gold = $800, Aug '11 gold = $1700 )

Gold is overvalued in that its 'flight to safety' factor has added to what its real value in FRNs is.

I don't buy anything based on the psychological factor because that can be manipulated far too easily in either direction, therefore I'm holding for the bottom in silver this month to stock up on a couple of monster boxes.

Silver will again outperform gold against the USD as we look back on this latest financial meltdown simply because it's currently undervalued against the USD and gold is not.

My 2 cents, FWIW, YMMV.

Bosso

 

[Seraphim]

That isn't really true. Asian investors and Indians ARE turning to silver.

The Mexican Central bank has already bought a lot of silver - YES. Silver is re-monetizing.

i think you have to think of the world , not just the US , the only ones that think silver has a big value is america , the rest of the world says when things get tough get your gold and run. its gold , not the miners or silver.

 

[Jeez]

Raise of Silver also had to do with industrial demand from China, if you think global economy will continue to be strong, go with Silver.

 

[Seraphim]

I agree.

To be fair - gold and silver are both winning bets.

Take your pick based on your goals and risk tolerance.

Since the last financial meltdown, silver has handily outperformed gold, industrial use jargon notwithstanding. (Sept '08 silver = $10, Aug '11 silver = $40... Sept '08 gold = $800, Aug '11 gold = $1700 )

Gold is overvalued in that its 'flight to safety' factor has added to what its real value in FRNs is.

I don't buy anything based on the psychological factor because that can be manipulated far too easily in either direction, therefore I'm holding for the bottom in silver this month to stock up on a couple of monster boxes.

Silver will again outperform gold against the USD as we look back on this latest financial meltdown simply because it's currently undervalued against the USD and gold is not.

My 2 cents, FWIW, YMMV.

Bosso

 

[ThePiousPriest]

I know it seems more contradictory but I am seeking something to hold for the long term that has lower risk and higher yields. I think I'm leaning toward silver again, any recommendations as to where and what to purchase in silver?

 

[YumYum]

Is it possible that there is tons of silver sitting in some underground vaults in Crown Heights, Brooklyn, that people aren't aware of? If this stuff has been hoarded for decades, how would we know whether it is there or not?

 

[Seraphim]

Silver offers more upside potential than gold - but stability is not what you'll get. Not short term anyway. Silver is crazy and wild over the short term...very stable over the long term.

If your goal is long term hold for savings and purchasing power...buy bullion.

If you are playing PM's vs Real Estate - buy bars in the largest sizes you can (up to 100ounces or so...I don't suggest the 1000's, as they can be tough to sell).

If you believe in the remonetization of PM's and think you will one day be purchasing goods and services...stick to 90% silver American coins (1964 and before) and the one ounce rounds such as Canadian Maples and American Silver Eagles.

A mixture of all is good and I wouldn't overthink it too much - bullion, bullion, bullion..that's all you really need to stick to.


.

I know it seems more contradictory but I am seeking something to hold for the long term that has lower risk and higher yields. I think I'm leaning toward silver again, any recommendations as to where and what to purchase in silver?

 

[Seraphim]

There are HUGE uncirculated stashes of gold and silver around the world.

It's rather irrelevant in the sense that, there will always be the monetary purists who will save the stuff for a rainy day. Savings is part of supply/demand.

Is it possible that there is tons of silver sitting in some underground vaults in Crown Heights, Brooklyn, that people aren't aware of? If this stuff has been hoarded for decades, how would we know whether it is there are not?

 

[YumYum]

There are HUGE uncirculated stashes of gold and silver around the world.

It's rather irrelevant in the sense that, there will always be the monetary purists who will save the stuff for a rainy day. Savings is part of supply/demand.

I ask because I was talking to a day trader from NJ who only trades in gold and he told me that he doesn't trade in silver because it is controlled by a group in Brooklyn who is sitting on a huge stash of it, and they, not JP Morgan, control the price of silver. It's kind of like De Beers controlling diamonds. There is no shortage of diamonds, but diamonds are valuable and rare because De Beers controls how many of them are allowed on the world market.

 

[eduardo89]

Th

The Mexican Central bank has already bought a lot of silver - YES. Silver is re-monetizing.

You can buy silver at pretty much every single bank branch here in Mexico. It's really popular and is even marketed at the bank counters as a hedge against inflation. The great thing is, they sell silver Libertad coins at spot price! I have about 750 stocked up right now, and every time I'm here in Mexico I buy more. They're also such beautiful coins:

 

[Seraphim]

I've never heard that.

Unless this group holds MASSIVE quantities of ETF silver - I'd say it's not true (that they control the price).

It's naked shorts and ETF selloffs that drive the price down - not selling physical. The physical market is a fraction of a fraction the size of all other silver investment vehicles. Even if this group held HALF the worlds supply of real silver (secretly that is, i.e double the silver supply we think there is) - it still would not be enough to move the markets the way they get moved by COMEX naked shorts.

The physical silver market has been nearly irrelevent to the changes in spot price for 2 decades - that has changed recently...but because of monetary investment demand by the little people.

I ask because I was talking to a day trader from NJ who only trades in gold and he told me that he doesn't trade in silver because it is controlled by a group in Brooklyn who is sitting on a huge stash of it, and they, not JP Morgan, control the price of silver. It's kind of like De Beers controlling diamonds. There is no shortage of diamonds, but diamonds are valuable and rare because De Beers controls how many of them are allowed on the world market.