Would you buy gold now?

I still think that with the GSR at 63, silver is still the better value of the two.

However, central banks and China aren't buying up silver, they are buying up gold, and I am sure they know what they are doing.

I have around $30k invested in Precious Metals (Via my SMSF) that is enough I think, if it goes up then I will make a modest amount and if it drops further then I only lose a modest amount. Buying a bit extra here or there isn't really going to make much of a difference.

If I only had an ounce then buying an extra ounce would seem like it was doubling my reward! Adding an ounce to my existing stack would give me the exact same risk/reward but it wouldn't seem so much, so I am not so excited about it.

So no, no gold for me because...

a) It is overpriced compared to Silver
b) I have already reached my gold owning target
c) Gold may well go down, if it does I might buy some, if it doesn't, see above.
 
Its always a good time to buy gold.
Will gold be overpriced compared to silver when it's 100/1?
 
Peter said:
Its always a good time to buy gold.
Click to expand...

Always?! Last year wasn't such a great time to buy it, I should have waited to get it cheaper this year, there is no shortage and I could have done with the extra cash, but who was to know?!


Peter said:
Will gold be overpriced compared to silver when it's 100/1?
Click to expand...

1 ounce of Gold buying 100 ounces of silver?

Yes I would say gold would be overpriced compared to silver, I would take the 100oz of silver.

For my own personal decision making, I would count anything above 1 ounce of gold buying 55 ounces of silver as being overpriced for gold compared to silver.

Just comparing the two against each other without looking at other factors or options is a bit of a narrow view but when it comes to buying gold there really isn't any other indicator as to which I would prefer.

I also consider 1 ounce of gold buying 45 ounces or less of silver to mean that silver was expensive compared to gold.

Anything between 45 to 55 I would be happy to buy which ever had the best offer.
 
Gold is the price it is because present market forces have made it that price.
How can it be overpriced?

Because you have silver?
Because your choice of silver would be shown to be incorrect otherwise.
 
Jislizard said:
I still think that with the GSR at 63, silver is still the better value of the two.

However, central banks and China aren't buying up silver, they are buying up gold, and I am sure they know what they are doing.

I have around $30k invested in Precious Metals (Via my SMSF) that is enough I think, if it goes up then I will make a modest amount and if it drops further then I only lose a modest amount. Buying a bit extra here or there isn't really going to make much of a difference.

If I only had an ounce then buying an extra ounce would seem like it was doubling my reward! Adding an ounce to my existing stack would give me the exact same risk/reward but it wouldn't seem so much, so I am not so excited about it.

So no, no gold for me because...

a) It is overpriced compared to Silver
b) I have already reached my gold owning target
c) Gold may well go down, if it does I might buy some, if it doesn't, see above.
Click to expand...

My thoughts/situation are almost exactly the same! I make the odd silver purchase too because it looks like better value at the moment.
 
Peter said:
Gold is the price it is because present market forces have made it that price.
How can it be overpriced?

Because you have silver?
Because your choice of silver would be shown to be incorrect otherwise.
Click to expand...

I have silver and I have gold, I am happy with the choices I have made in buying them, I wish I could have bought them cheaper but I don't regret buying them.

I am not having a go at you, I think you may have misunderstood, maybe I wasn't clear enough in my explanation, I was in a bit of a rush at work.

Overpriced in this case is not referring to the dollar amount you are paying for the metal. Maybe 'overvalued' would be a better descriptor.

Overpriced in this case is simply looking at how much gold you can buy for $100 or how much silver you can buy for $100. As I am sure you know this changes on a daily basis. But it doesn't always change at the same rate. Although it looks like gold and silver rise and fall in tandem they don't exactly correlate. Sometimes they will both take a hit, but one will be affected more.

I meant to put across the point that you can compare the relative costs of gold against silver and this can be used to get a Gold to Silver Cost ratio. From that you can get a rough idea of what the ratio is 'normally'. http://www.kitco.com/Gold_Silver_Ratio_Charts/gold-silver-ratio-charts.html has the charts ready made. If you look at the chart for this year

365d_sm_gold_silver_ratio.gif

Source: Kitco

You should be able to see that the at the beginning of the chart one oz of gold was the equivalent of 66 oz of silver. Then it changed and one oz of gold was the equivalent of only 58oz of silver, suddenly 1 oz of gold was worth 8oz of silver less, so either silver got more expensive or gold got cheaper. Since then it has been slowly heading back to towards 70 again. Which means that either silver is getting cheaper, or gold is getting more expensive in comparison to each other.

That's all I mean by saying one is overpriced in comparison to the other, they are both cheaper than they were a year ago, but silver is cheaperer.
 
Many people here think there's going to be a crash.Thays why they are into gold.They are not speculators, they want insurance. If this happens gold will, after a while, rise on a crash due to imsecurity

Silver will probably fall.
G/s=?,200/1,300/1?
It's not a usual decade.
Chart won't work.

Sorry for the abruptness, but I think people onto silver are speculators
Larger amounts of certain metals for the same price are not cheaper, they are just less valuable.
Silver may make you more money, but its much more dangerous.
Gold is always good to buy because it tends to retain value more than
ANYTHING else.
If I thought there was to be no crash, I'd buy silver.
 
Peter said:
Many people here think there's going to be a crash.If this happens gold will, after a while, rise.
Silver will probably fall.
G/s=?,200/1,300/1?
It's not a usual decade.
Click to expand...

I have heard that as well. If there is a financial crash then the demand for manufactured products will decline so the demand for silver will go down and the price will follow. If the dollar crashes then people holding other stores of value, such as gold, will come out of it better.

So if there is a crash then gold will probably be a better buy than silver. However there are a lot of vested interests in keeping the whole thing going, Governments and banks for sure won't want a crash unless it serves their purposes. Who knows how long they can keep limping along?

These sure are interesting times :)

But if the Gold to Silver ratio does go through the roof I hope I have enough gold left to exchange it for silver (I will keep my coins though)
 
Jislizard said:
Peter said:
Many people here think there's going to be a crash.If this happens gold will, after a while, rise.
Silver will probably fall.
G/s=?,200/1,300/1?
It's not a usual decade.
Click to expand...

Governments and banks for sure won't want a crash unless it serves their purposes.
These sure are interesting times :)

But if the Gold to Silver ratio does go through the roof I hope I have enough gold left to exchange it for silver (I will keep my coins though)
Click to expand...


They didn't want the 2008/9 crash either, but it happened. I believe the GS ratio got to around 80-1 at the low point. Unfortunately I was new to lunars at the time and turned down 2009 lunar ox typesets at $16/coin because I listened to people who said the Ox coins would never be worth much. :rolleyes:

Having gold is good, but so is having cash to take advantage of opportunities that can come along during a crisis.
 
Peter said:
Many people here think there's going to be a crash.Thays why they are into gold.They are not speculators, they want insurance. If this happens gold will, after a while, rise on a crash due to imsecurity

Silver will probably fall.
G/s=?,200/1,300/1?
It's not a usual decade.
Chart won't work.

Sorry for the abruptness, but I think people onto silver are speculators
Larger amounts of certain metals for the same price are not cheaper, they are just less valuable.
Silver may make you more money, but its much more dangerous.
Gold is always good to buy because it tends to retain value more than
ANYTHING else.
If I thought there was to be no crash, I'd buy silver.
Click to expand...

You think silver will fall, while gold will rise during a crash?

Many people stack silver as well. The decrease of industrial production is no guarantee silver will go down.
 
I say yes because I am buying gold right now :) I wouldn't feel good dropping a huge amount into a lot of ounces; I'd rather buy a bit at a time for price averaging but that's me.
 
So far the result of the votes (manually counted):

12 (70.58 %) YES
1 (5.88 %) "DEPENDS"
4 (23.52 %) NO

Wow, this is getting interesting.

Anyone else want to type in their opinion, I'm very curious!
 
Why Sovereigns? For numismatic reasons?
I'm curious about your choice.

I'd buy pure gold coins like the Maples or Buffaloes.
 
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