I currently have been stacking silver for about 2 years and have yet to stack any gold....But I think it might be time to start stacking gold...Everyone seems to be so negative towards Gold ,I am in for the long haul so even if it drops it would be the perfect time to jump in and average down if that's the case.
In a recent thread here, many silver stackers appear to feel that gold is a more desirable metal to them than silver in terms of future value. Gold and silver are no longer held in the same regard as they once were when both were pegged or tied to certain currencies. Silver was uncoupled many years before gold in the West and is increasingly being perceived as an industrial commodity rather than what some loosely define as money. The truth is, investing your money into either metal is still an exercise in speculation as the value of both metals is subjective, volatile, and changing over time. .
Good time to buy when people are negative about something, when they start to become positive you have missed the boat. True, but the same can be said about any investment. It's just a matter of what you believe has the most value, or the highest true value.
Note Putin in the article: Given the geopolitical climate between Russia and the West, analysts believe it is likely that Moscow will cut reserves of euros and dollars, while seeking to boost its yuan currency and gold holdings. Indeed, Russia's President Vladimir Putin said in May that it was essential for Russia to secure its gold reserves due to theuncertaineconomicclimate. "For us (Russia and China) it is important to deposit those (gold and currency reserves) in a rational and secure way," he said, adding that both Russia and China were exploring ways to increase the use of nationalcurrenciesas an alternative to the dollar.
Gold is overvalued relative to silver and hence silver has far more upside potential (or less downside) in my opinion.
I agree that SIlver has more up side, But my stack stack is 100% silver and with the recent slide in gold prices it might be a good time to diversify. I started buying silver in the 24 $ range and have brought my average down quite nicely .
oil is lowly priced now, China is very busy with the 80 very large crude carriers http://www.zerohedge.com/print/496078
I've been tempted but I'm not buying gold unless the GSR narrows quite a bit. If that happens I'll start selling silver to buy gold.
This is probably a silly question but I am still learning,but With Silver gaining more and more ground as a industrial metal is the GSR still reliable.
Don't know, but I use it to guide the ratio of my purchases. Not my holdings, mind; I don't think I'll start swapping one for the other because I'm unsure now about the validity of the ratio and the perceived fundamentals - in short, I don't see any strong reason why we should have a reversion to a historical mean.
Quite. It is just a descriptor. But I don't really see why we should see any reversion to the historical mean, or beyond. The 'old' mean reflected a time when silver and gold were monetary metals. Arguably, gold still has a monetary function, but silver does not anywhere I'm aware of.
Gsr is an artificial construct. The is no reason for it to be a particular value. Especially now that 90% of above ground silver has been used up. And the markets are rigged.. you know.
It's still reliable to use to trade in and out of G&S and get some free oz but the reversion to the historical mean is a bit sketchy. Good discussion here- http://forums.silverstackers.com/topic-34055-gsr-the-fallacy-of-161.html
I expect that Russia is also preparing for World War 3, when currency will be next to useless for buying weapons and other necessities. See what Putin has to say about the "almost inevitable WW3" here: http://forums.silverstackers.com/topic-57756-putin-pokes-the-nwo-in-the-eye.html.
