Best PM ratio of Ag:Au:Pt/Pd

Assuming stackers on this site "mostly" believe that stacking PM is (1) a good hedge against a financial crisis that looms in the near future or (2) a store of wealth. Assuming this is correct what do stackers believe should be the ideal stacking ratio (in oz) of Silver: Gold : Others (Pt/Pd) . I prefer to use oz to avoid variations in $ terms. We assume gold is the largest market and most stable, silver more volatile while PT and Pd are the rarest of the PM and are most volatile. Many experts debunk Pt and Pd as too risky (which I do not agree with) Any thoughts on an ideal troy oz ratio of GOLD:SILVER:OTHERS. I thought somewhere around 100:10:1 would give the best spread. Has anyone got any comments or advice on this ?

 

Hi Matrix. I am only after the PM investment whatever that %. In this regard you recommend 2:6:1 (Ag:Au:Other) in ounces. That means you are very underweight in Ag but overweight in Pt/Pd. At the current price that would be a ratio in dollars 1:120 (Ag:Au).For all intents and purposes you may as well have no silver and only invest in gold and platinum/palladium which is fair comment. I like the Pt/Pd investment as it is so underbought. The old story about the rowing boat - when everyone goes to the one end you better go to the other end. Thanks for your input.

 

Depends how much money you would be investing.

Anything less than $3k and id recommend to go ALL INTO SILVER.

$3K- $20K

than maybe following ratios IN VALUE

30% GOLD
55% SILVER
10% PALLADIUM
5% PLATINUM

 

I personally would prefer Au and Ag if stacking for SHTF/bartering scenario just because it is readily understood and the perceived value is high.

Pt may also be good in some countries where the populace know Pt is expensive, but I don't think many people outside of stackers/Russia/industry know what Pd is.

I'd go for a ratio of 10:2:1 in ounces of Silver:Goldlatinum if I could afford it, would avoid Pd completely but that's just me.

The novelty collector in me would love to have a 1oz Pd in PAMP card though

 

100:10:1 in oz seems incredibly strange to me. In $ terms at current prices that turns out to be approx 420:1:5.

With that ratio you may as well not have anything in silver at all as even if it goes up by a factor of say 10 it is such a small percentage if your portfolio as to be immaterial.

 

Hi in dollar terms (100:10:1), currently (+/-) that is 100 Ag = $3600, 10 Au = $14,500, 1Pt= $1800

 

Or, you know, maybe it was directed specifically at the person who talked about a 100:10:1 ratio.

The original poster asked for opinions and I fail to see any uncivility in my post, or indeed anything about silver going through the roof. Methinks your paranoia is getting the better of you.

 

As far as PMs go, I'm 70% silver, 30% gold.

I might even it out once I re-enter "buy" mode, just to be sure


Or, if I wanted to be contrarian, I could load up on platinum instead of silver/gold, but then I'd be taking a huge risk as I don't even believe the vehicle industry has any legs to stand on when the SHTF. :/

 

My apologies - I read it as 100Au : 10Ag... sorry about that

 

That is what spreading the risk is in PM. No one would sell all their gold and silver for all in Pt but having a small % in Pt may be an advantage if the price suddenly goes up. These minor metals are very volatile and Pt and Pd have a precarious supply from South Africa and Russia. The Perth Mint will recall when in 1997 their Pd supply for the Emus was pulled. The Russians claimed to have a large stockpile which was a bogus claim. Similarly the SA mines are subject to increasing costs and talks of nationalization. Pt is only about $200 less than gold which is very attractive for what is a very rare metal (world production is 5 mill oz/anum) as compared to 85 mill oz for Au and 800 mill oz for Ag. Pt and Pd are a bit speculative that is why I think 100:10:1, Ag:Aut/Pd in ounces is a good ratio. It is possible that complete economic collapse does not happen globally and Pt and Pd prices will be determined outside Australia. So who cares if the locals are ignorant about Pt and Pd. Remember Australia produces about 100,000 oz of Pt/ year.

 

80% au / 20% ag. Other metals are far less liquid and so I'd only hold a speculative amount or get exposure through shares.

 

The 4:1 Au to Ag in dollar terms is currently 1 Au:10 Ag in ounces which is what I also like. The Pt and Pd is speculative I agree and as long as it is a minor part of your total PM I think it is a good hedge. I think people ignore he Pt group and therefore it is in my mind a buy. Even Marc Faber talks of PM as Gold, Silver, Platinum and Palladium in that order.

 

Unless you have any significant amounts in Pt and Pd then I see them as just something unusual to have in a stack. Otherwise you really gain no benefit from small qty's you may as well spend that in other areas. Is a few dollars here and there really going to make a difference. Even if they doubled holding a small qty has no benefit IMO.

As for Ag / Au I would like to hold more in Au but every time I go to purchase and see that I can get so much more in Ag than Au for the dollars I keep going Ag. My % at the moment in Oz would be something like 500 : 1 way underexposed in Au so now working on getting that at a better average. Perhaps 50:1 ? With no Pt or Pd other than novelty to round out the collection. Which BTW has about 5oz oz Cu as well LOL

 

I would like to thank everyone for their input. It is good to see what others feel. I think we all +/- agree that 10:1 (Ag:Au) in ounces (or about 20:80 in $) is a good split. I may be on the outer but I like the Pt metals so I add them in at about 10% of my Au or 1% of Ag (in oz).

 

you buy what is relatively cheaper, now silver is cheap after it has fallen a bit.

the logic to get more silver is the upside is very good. we saw it tested a high, when we are in a major bull market, there will be more test to the upside ahead.

and if you hold silver, you can swap to gold in some future date.

ie when ratio was low 32, it may test lower ratio as well as the long term trend is heading lower from 70+ down towards 30+

its best to have both, but for a start silver is a real bargain for newbies.

 

I don't agree that Pt and Pd will lose value if we go back to a gold standard. Firstly, like silver, platinum is undervalued. It is approaching an almost record low against gold. Historically Pt was 30-50% more than gold. Secondly the refining process for Pt is a six month bacterial extract that is estimated to cost $1000/oz. That excludes the mining costs which are rising each day. I think if you are a platinum mine you are struggling to make money now. Stockpiles are at almost record lows. Add in that 80% of Pt is mined at a small number of mines just west of Johannesburg with significant labour and political issues. Yes if there is total economic Armageddon Pt like most other things will have no value. But I am banking on a more sustainable outcome. While the US may melt down other developing countries will not.

 

100% SILVER

0% GOLD

0% PALLADIUM

0% PLATINUM.



OC

 

The best ratio is what you can afford & what u like ..

Lets face it its all speculation on what is the best investment . A finger in a few pies is better then one but thats just my opinion others opinions differ so buy what you feel happy with .... i think we all need some luck the way things are flatlining or sinking atm.

Theres plenty of time i didnt expect to get rich any time soon hopefully our patience & good intuition will pay us handsomely in the end game .

 

Great Advice !!