As some of you may know, I am new to stacking. I've started with silver and I'm thinking about switching over to gold. I am working with a tight budget but so far I have managed to pick up an ounce of silver every pay day. I've noticed that instead of buying two ounces of silver every month I could purchase 1 or 2 grams of gold instead but I see that there is a much larger premium on gold. Which do you think will give me the greatest return on my investment in the long run? With the larger premiums for such a small amount of gold per purchase will I have to wait longer in order to get a return on my investment or shoul I just stick with silver and it's lower cost but but higher risk?
I think its a good idea to have both silver and gold in your stack. But be aware of the additional premium you will be paying for the smaller sizes you are buying. (e.g. 1 oz Silver round ~ $37 - $40, 1kg PAMP ~ $1128 (equates to $35 per oz). Similar for gold) Plenty of good deals on offer here on Silver Stackers - so keep your eyes open. And dont be afraid to ask questions - we are all here to help.
Have a quick read through these threads and any similar ones if you do a search. http://forums.silverstackers.com/message-388614.html#p388614 http://forums.silverstackers.com/message-200399.html#p200399 With small amounts there will always be high premiums due to the minting/fabrication cost having a roughly fixed cost base. Tough call therefore. Personally I've generally tried to save up and buy in min. $500 lots in order to avoid this problem but have made the odd exception when I've happened to see a deal that has roughly the same $/oz for a fractional compared to a larger size. For example, a new 1/2 oz gold kangaroo/lunar snake at Goldstackers currently costs ~$922 (or $1844/oz). They are also selling 1/4oz Rabbits at only $465 (or $1860/oz). Besides the potential appeal of fractionals I'd consider the 1/4oz in this case if I didn't have enough cash. (This is not a perfect example but it is a real one that you can verify.)
Depends why you're stacking. Silver for high risk / high return fiat gains. Gold for lower risk / lower return fiat gains. Silver for spending during SHTF scenario. Gold for transporting wealth from one side of SHTF scenario to the other. This post from May discussed different types of stacking: What type are you? http://forums.silverstackers.com/topic-26481-what-type-are-you.html But i'd have to say this link is probably best for newbies: I have $X,000, what should I buy? http://forums.silverstackers.com/topic-14520-i-have-x000-what-should-i-buy.html (it's a sticky in General Precious Metals)
I'm a newbie like you. And I buy about 6oz of silver every 2-3 weeks, and some gold if i can afford it. (though, i've fallen victim to some impulse buys. 10g pamp dragon and 1oz pamp snake, they're so beautiful) My entire stack is mostly PAMP 1oz bars though, I like them, I dont quite mind the higher premium, as I reckon they'll be easy to sell if i do need to liquidate.
for every 32.15 ounces (or 1kg) of siver you accumulate you could potentially swap it for an ounce of gold when the gold to silver ratio reaches 32.15
The volatility of silver since mind 2010 really is remarkable. Any attempt at predicting the long term silver price based EXCLUSIVELY ON CHARTING without consideration of the fundamentals, would require the agates of an elephant and the grey matter of an ant. The problem is, what are silvers fundamentals? Conspiracy theorists (many of whose views I tend to agree with) would have the fundamentals looking decisively different to those who merely look at silver as an industrial commodity. All in all, a nice murky view into the future.
IMHO....in the long term, i think gold is better then silver. ATM silver price like a roller coaster, it really hard to predict where it go . or stack both of them with 70% gold 30%silver. ever try numis?, it really good investment too as long as you know which one is sought after/popular.
I had thought about collectible coins but rejected it for a couple of reasons. First, I don't want to get too attached to my stack if and when the time comes to sell. Second, when the market hit in 2008 all I heard about people with collectibles was they took the hardest hit. Stamp collections, art, cars & coins all found out that nobody was willing to buy their collections or if they did they took a loss. Coin collections moved around spot for gold and silver and not much else. I'm thinking of stacking till I reach my goal and then converting to gold if it's not too late. I might try small purchases of gold once my silver stack grows a little more.
I wish I knew the exact Gold \ Silver ratio of my stack. When it is at the bottom of a body of water it is hard to remember. Comes to mind that it maybe 75% Silver 25% Gold. Thing to keep in mind is volume of bulk when need to bring to surface. Thank God for GPS.......
