I have only a small stack, currently split 61% gold, 39% silver (by $ value). My plan is to head toward the magic figure of 10% of my assets held in PMs. Ignoring the current price trajectories for the moment, what advice would you give regarding the % split gold to silver? Also, how would you diversify the purchases in terms of low-premium bars, minted bars and coins?
I am investor and I have a plan to get to 5% - I dont plan going to 10% unless something changes 4% of gold and 1% silver Investment - unallocated Perth mint Gold - lowest fees and instant sell and/or buy. Hobby - Coins and bars - a pita to sell but it still has its place and its shinny The way I see it, there is plenty of silver in the ground 0.075 percent of earth crust is silver and a decent amount of gold 0.004. The current economic shakes will end just like we had a boom few years back. Silver might be industrial blah blah blah, but gold will have unprecedented demand from Chinese who as they get richer will want gold jewellery, in ten or twenty years, which is my investment outlook. Just imagine 25% of Chinese are women above 25 each had 1 ounce of gold in rings, earing and necklaces. that is 400 million ounces = 12,400 tons.
It's much easier to fit a kilo of gold in a small safe deposit box, than 70kg of silver. Gold is also easier to carry when travelling and readily acceptable everywhere.
Hard to plan for something that is always moving. I would never give anyone advice as I have made plenty of mistakes along the way and I wouldn't want to gamble with other people's money. All I can do is tell you what decisions I have come to and I am happy for others to give me feedback on my choices. I had a plan to begin with, I also had spreadsheets, never had a budget though. Gold and silver both have their pros and cons and I have a good enough arguments to keep both. The only thing left is, which one do I buy right now...? The GSR solves that question, when the GSR is high, like it is now or whenever it is above 55ish, it means that gold is relatively expensive when compared to silver, so I buy silver. When the GSR is low, below 50 or so, I consider that gold is cheap compared to silver and I would consider that a good time to be buying gold. Most of my stack is in my Self Managed Super Fund and is in unallocated form so I can quickly buy and sell it without having to get it out of a safety deposit box and post/carry it to dealers. I use this to swap between gold and silver so it is important that it can be done over the internet and as quickly as possible. I also have my personal stack and I want the most amount of metal for the least amount of premium, so I have a load of dirty predecimal coins. I have some bars as they are also low premium and stack better. These will only be good if the spot does not drop. if it stays the same or goes up then I am happy to park some money here, saves me spending it. If it can at least go up in value along with the rate of inflation I will consider it as being as good as having it in a bank account. I also have a coin collection, so I have some gold coins worth their melt value, and I have some gold coins with a numismatic premium. I also have non precious metal coins worth only their numismatic value. I have some 'semi-numismatic' bullion coins and rounds because I liked them or more likely, I thought they would go up in value and I could sell them on, anything that is current year and part of an ongoing series is targeted here. I have mostly stopped these purchases because the premiums have remained high but the quality has dropped, milk spots are wiping out premiums so I need to rely on a large rise in spot price just to break even, and I don't like those odds. I never planned out anything like end weights, ratios etc. I recently stopped buying because I ran out of storage space for silver, gold is too expensive (relative to silver), the semi numi quality is rubbish, the 20 for 20 programs have been revealed to be a con, I get better returns by paying down my mortgage, I have lost interest in the hype surrounding new releases, I am more interested in 'investing' in Kickstarter Boardgames and Magic the Gathering cards/sealed products, I have enough now that if it goes up I get a nice win but if it goes down I will be annoyed but not devastated. No idea what I actually own or what the ratios are, the stuff is all over the place and it has been a long time since I got it all in one place to have a stock take...
If think that if the worlds economies tank, which everyone seems to be predicting then the guaranteed winner will be gold. Silver may or may not come along for the ride. I don't like the idea of swapping gold for silver based on the GSR. My holdings are more gold than silver, and most of my silver I got at around AUD$20 or under. I'm not buying silver at current prices.
storage becomes an issue with silver and this kinda sucks, like physical books if you read a lot, with portage issues vaulting costs grate when the price is stagnant gold first is rational from this perspective silver is speculative buy low, sell high you don't go broke taking profit
I always said, body weight in silver, penis size in gold. so for me it's 115kg silver, 6.5 oz gold one oz per inch But silver ages just like us, it goes grey and blotchy and not very appealing to look at. So just buy one erection in gold every 6 months.
