Opinions Requested: Gold or Silver?

So the spot price for both gold and silver have now dropped lower than they were when I first started stacking, and I want to make the most of it with the fiat I have. I'm in a bit of a quandary though over whether to buy more silver (bought some recently @ $26/oz) or to get some gold.

The GSR is nearly 60:1 which I think will lower when spot rebounds. Silver has been about twice the price it is now, I don't think gold has which would make silver appear to be the better option.
However my personal GSR is abysmal, I literally only own one 1/10 oz gold coin. So I would like to improve it. I could buy gold now, or buy silver now and trade for gold later but then again, I've never successfully been able to trade an item for an item here.

I could get a mix of both but that only makes deciding what to get more difficult. I'd like more PM 10oz bars, 1kg bars seem to have suddenly gotten popular around here, or I could get the coin equivalents (I love my 10oz lunar snake). Should I get more 1/10oz gold coins to make calculating how much gold I have easier? Or maybe larger fractional coins? Maybe small gold bars?

So yeah, opinions please?

 

silver... a little birdy call the GSR told me.

 

Silver, GSR indicates that although both are dropping in price silver is cheaper relative to gold.

The price of 1kg bars are very attractive now but not so attractive when prices were in the $30s.

Or go for unallocated, that way you can do your swaps later without having to actually post lumps of metals and work out premiums etc.

That is what I am doing anyway, sad thing is you never get to hold your investment.

 

cant tell anyone what too buy, but thinking this drop has further to go, I might be crazy but might wait till all the people that are buying now like crazy from what I can see are out of $ and the price takes another hit and then pick some up much cheaper, gamble yes, but isn't this game about that ?

there is no shortage of of PM but there is a shortage of people willing to sell at a loss. plus I don't want to wait a month and be someones hedge.

 

Thanks for the replies. Silver it is.

I've been trying not to panic buy. I see spot low and wait, it's starts going back up and I almost buy thinking I've missed the opportunity, then it goes down again. It's nerve wracking and exciting. I'm patient enough to try and wait, even though it's excruciating. I want to get the absolute most I can for what I have to spend, because I can only go all-in once.

But yeah, trouble is finding those willing to sell at the dropped spot. I've noticed Bullion Money stopped changing their PM 10oz bars with the spot price and locked them in at $270, Goldstackers still is though.

 

...of course central banks are buying gold, not silver, and if anyone knows how the fix is in it will be those guys.

 

Percentage declines from highs are not out of the ordinary

30% drop for gold
55% drop for silver

Remember people saying silver is like the gold market on steroids - thats true down as well as up....

Now you know why people are scared of them - you were born in the up trend... many are old enought to remember the 80s crash.

 

put them both int a spreadsheet and workout the premium whatever you can get for the least premium for the amount you have to spend go with that...

 

A stacker, thus as an inflation evade attempt, makes longterm choices, right?
Central banks are the origin of inflation, right?
Central banks own a big part of the gold in the world, right?
Well, I combined above 3 to make the metal choice.

Of course, for those that play the cycles, and will get out anyway if crisis appears over / no inflation danger, there are other considerations.
The thing is, central banks can all of sudden decide to sell X tonnes to the market. Cyprus' bogus story was 10 ton. The IMF story 2008-2010 was 191 ton. An ETF, IShares Gold Trust, holds 200 ton at the moment (and has dumped 80 ton in last 2 weeks).
The IMF holds 2800 ton.
Central banks together own a 30000 ton.
Gold ETF's hold 1750 ton.
Figures 2012.

I'd say the key question, with saving intention, is whether you trust other player&stackers more than central banks in holding or not.

 

At the moment:
- Gold is now 2008's bottom +100%
- Silver is now 2008's bottom +160%

The maxes seen since 2008's bottom are:
- Gold +170%
- Silver +450%

Decade changes:
- Gold is now 2003 +350%
- Silver is now 2003 +380%

The decade view shows that the choice gold or silver, at this moment, makes little difference.

 

Hi Evolution,

From the amounts of gold (1/10oz) you mentioned and assuming the 10oz/1kg bars you are mulling over are silver, on these amounts I would be going for silver.

I would not be too worried about your prior trades on this site as an indicator to trading up a GSR ratio at some time in the future.

A very large portion of Australians invested in the PM'S are not necessarily members of one specific Internet site, although this is one of the better ones.

As public awareness grows which is occurring already then you will find a growing base who will want to trade gold for silver and vice versa for different reasons and to balance their own GSR'S etc, some may be overweight in gold for instance and be scrambling for silver.

If you, after doing your own research believe now is a good buying opportunity for PM'S below their realistic price ??? - Then I would submit for consideration that you would want to accumulate the most ounces as possible at this time specifically in the most undervalued metal of the two, also weighing in which will potentially give the greatest return should they both return to prior levels.

Best of luck whatever you end up doing.

 

I've gotten some great posts here, I appreciate you guys taking the time to write them up. Thanks.

I've bought a little more silver but I'm cautiously waiting to see if there's another significant drop before making a final plunge.

 

Im thinking gold...been waiting for ages for the price to drop...more likely bars than coins

 

FWIW..go the biggest Gold Bar you can afford at present.