View Full Version : Should Silver Bug Buy Some Gold....?
11-03-2010, 06:55 AM
I have a pretty decent physical silver holding that I've accumulated over the past year and a half. I have an opportunity to buy about 4 oz of gold Krugerrands at spot. It is a mixed lot of 1/10, 1/4, 1/2 and 1 oz coins.
Gold is at all time highs. I still like silver. Should I buy a little gold at these historically high prices, or just keep stacking silver?
Is spot a fair price for Krugerrands? All are from the 1980's.
11-03-2010, 07:14 AM
There is nothing wrong with having a foot in both camps. I personally believe that gold will rise between 20% and 30% over the next twelve months but that it'll be a rollecoaster ride. All time high? Well yes, near as dammit but I think that the form books go out of the window in times like these.
You are right to be in silver too but in the short-term I see a lot of resistance at it's present levels. Should the economy pick-up there is a lot of potential for silver and platinum to out perform gold because of the associated industrial uses. Platinum and paladium being well placed to benefit from the growth in Chinese auto sales.
Go for it and enjoy. Happy Stacking
11-03-2010, 09:11 AM
The fractionals are worth a fair bit over spot, I would jump all over that.
In fact I would sell a 1oz coin just to afford 1oz of fractionals at spot.
11-03-2010, 09:32 AM
11-03-2010, 09:38 AM
While I agree that Ag generally has a more rapid, volatile even, upside potential, I strongly believe that everyone should have a solid reserve of gold in the background. If and when the dollar goes bust, gold is the international currency of choice. Many countries simply do not, and have never, considered silver to be a currency equivalent. This is why we keep hearing announcements about how foreign powers "...just acquired XXX tons of gold."
Silver is an investment. Gold is insurance.