Optimal allocation of hypothetical $100k - 7 months after ,...

Discussion in 'General Precious Metals Discussion' started by THUCYDIDES79, Apr 20, 2011.

  1. THUCYDIDES79

    THUCYDIDES79 New Member Silver Stacker

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    Hello Stackers,

    Another topic that has started to be on my mind lately ( last week )
    is the one of optimal allocation of GOLD and SILVER in value !?

    See below the thread from 7 months ago

    http://forums.silverstackers.com/topic-2856-optimal-allocation-of-hypothetical-100k-page-1.html


    Hello guys,

    If you had $100k to 'spare' and buy PM with, what would be the optimal allocation of it??
    Me, personally, I would go for
    : 90% Silver
    : 10% Gold
    Mainly due to relatively high Au-Ag Ratio at around 65:1

    That was from the 7th Sep 2010 !!!

    Now i have mellowed down a bit and would go 80-75% silver and 20 - 25% gold


    Its at 34 and time to take the first round of profits i say.
    ( profit... swapping some of your silver for gold !!! )

    I still believe in the fundamentals of silver but the extraordinary rise ( week by week ) is unsettling me a bit, sure it is heading down to maybe 16:1 or even 10:1 or
    in the very long long run maybe 1:1 and be unto GOLD what PALLADIUM is unto GOLD now, but it hasnt been this low in a while.

    any thoughts, revisions ?!
     
    THUCYDIDES79, Apr 20, 2011
    #1
  2. rbaggio

    rbaggio Active Member Silver Stacker

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    +1
     
    rbaggio, Apr 20, 2011
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  3. dccpa

    dccpa Active Member

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    I stand by my 25-25-25-25 split between gold and silver physical pms and the mining stocks. Selling some First Majestic stock to purchase another 500 somalia elephant coins brought my ratio between physical and mining stocks back closer to a 50-50 split. I added some PAL on its pullback recently and I am patiently waiting for the market to realize the coming palladium shortage.
     
    dccpa, Apr 20, 2011
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  4. Forge

    Forge Member

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    Problem with silver remains it's industrial vector - at some point demand will start dropping there, which will ultimately cap prices.

    Long way yet though.
     
    Forge, Apr 20, 2011
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  5. pmfiend

    pmfiend New Member

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    Why do you think industrial demand will drop? GFC II or nanotech/quasicrystal alternatives or ???
     
    pmfiend, Apr 21, 2011
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  6. renovator

    renovator Well-Known Member

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    Im not convinced it will fall even with a gfc
     
    renovator, Apr 21, 2011
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  7. hiho

    hiho Active Member Silver Stacker

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    Good topic THUCYDIDES79

    are you talking dollars or weight here?

    apologies just re-read you post

    Well I am currently 60-40 in favour of silver. But have been converting silver to gold after each 10% drop in the GSR
     
    hiho, Apr 21, 2011
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  8. euphoria

    euphoria New Member

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    My DCR entry prices and amount invested in both gold and silver, are that I have spent 40% of my funds on Silver. However, now silver constitues 56% of my 'pm' portfolio
     
    euphoria, Apr 21, 2011
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