View Full Version : Looking for opinion, buy Gold or buy Silver?

08-30-2011, 12:43 PM
I've been saving up some dry powder and am ready to make my next PM purchase soon.

I'm looking at getting 100 ASE's, or two 1 oz AGE's, and one 1/4 ounce AGE.

I first started stacking silver, and eventually made my way to Gold. I haven't purchased any new Silver in two years, and I'll tell you why. I always had this feeling in the pit of my stomach that Gold was going to start taking off someday, and that I better purchase all I can now while I could afford it. I figured if the time ever came that I could not afford to buy Gold, I could go back to stacking Silver (albeit at a much higher price as well).

The POG is very close to $2,000/oz, which is where I'm thinking my cutoff point will be for purchasing any more. So my question to the Kitco forum is this, is it better to try and make maybe one more purchase of Gold while it is under $2,000/oz, or do I purchase Silver?

My gut tells me that Silver is the better value right now, but I can't stop thinking that I might not get another chance at sub $2000 Gold (this will probably be my last PM purchase in 2011).

All advice and opinion is greatly appreciated!

EDIT- I'm looking at long term holding here, not looking to flip anytime soon. Certainly an emergency could come up, or I could find better use of the resources, but for the same of this thread, lets assume I plan on holding for at least the next 10 years.

08-30-2011, 12:48 PM
I'd take a look at your end game and what result you desire. Is it to simply protect wealth? Want to make some money and sell.. long term? Short term?

IMO AG has much farther to go than does AU over the next 10 yrs.

08-30-2011, 01:11 PM
long term gold is always best, but if you're trying to flip it in a bit a gain a buck or two get some silver, or better yet go into pool (cheaper if you get in before the 7th of sept no admin fee).

my thoughts at least, or you could always do a rental property good returns and low risk depending on the place you buy.

08-30-2011, 09:27 PM
Not sure if there is more upside than downside in Silver at the moment, or vice versa. I have to think it's going to retest $50 by years end right?

08-30-2011, 10:06 PM

I'm looking at getting 100 ASE's, or two 1 oz AGE's, and one 1/4 ounce AGE. ...

All advice and opinion is greatly appreciated...[/QUOTE]

You need diversification: only Ag is not optimum. Sure, it has more POTENTIAL upside but gold delivers. Silver is going to get hammered from time to time- small market, lots of reasons: JPM short position, US gov't interest in keeping citizens from fleeing the dollar to Ag and Au- drop Ag and the flaky reputation will spread to other PMs by association, they hope.

If I could have gone back and gotten ONE PM in 2006 or so, it would be gold: easier to store, MUCH easier to flee with, is "real money" more than silver. Downside is too expensive price, mostly. I doubt that Au will have a severe drop anytime soon. Silver is fine but much of the time the price isn't going to seem nearly as high as it should be- now it's $41.xx... why isn't it over $50, or at least $49? Because it's been forced down over and over.

$2k is not a point to stop buying: it's a psychological point, not a real one. Some say $50 is the limit for silver... no way, it should be over that now. It should be closer to $70 and gold should be $2400 or more based on inflation. PMs are bargains, in that regard... but you can't get the real value yet either. Don't know when we will. That's the gamble in PMs. Gold to me is more certain to rise.

08-30-2011, 10:17 PM
Brigadeer. Follow your instincts...

08-30-2011, 10:32 PM
hold your cash ,wait for a dip and run with the stash .;)

real money 28282828
08-30-2011, 10:45 PM
thats easy silver it has and will gain more profits than gold and has a smaller mark up

08-30-2011, 11:25 PM
It's a question I ponder frequently. Kudos to those who didn't say buy silver since this is the silver forum.
It's so hard to give an answer without knowing a lot more than what you have to spend.
My suggestion, just based on blind intuition is buy a well know amount of fractional gold. Gold bars typically carry lower premiums than the coins. Don't buy from Craigslist or the bay. Buy from a reputable dealer. So diversify if you want to get into PM's. You CAN do that with just $4K.
So a one ounce bar - CS or Pamp. Then some fractional pieces of gold.
So now you have approximately $800 left. Buy some well know recognizable government minted coins like the Eagle, the Maple, Kook, Phil. Get some of each so you can see what strikes your fancy.
Again, being an Internet forum on silver...
Gold IMO has a lot of room to run and we've seen it running with a correction thank goodness. Corrections are good.
And for goodness sake - read the gold forum for a while. We've got some great resources here on the silver forum who pipe in from time to time. As do they. I know, you feel the fiat burning a hole in your pocket and think if I don't buy now I'm going to miss the bus. Believe me, there is always another bus. Whatever you do, good luck and keep us posted. I'm curious what you decide and why.

08-30-2011, 11:30 PM
If your heavy in gold then buy silver, if your heavy in silver buy gold. If you want something "safer" buy gold, if you want to gamble buy silver. Both are very volatile investments, so why not minimize your risk and buy both?

Don't know what else I can say...

08-30-2011, 11:33 PM
Why not do both? 50 oz Ag and 1.25 Oz Au? My gut tells me silver will outpreform too but what the heck do I know. I think it would be best to keep it diversified. Speaking of that I need to get some Plaitnum.

08-30-2011, 11:40 PM
Why not do both? 50 oz Ag and 1.25 Oz Au? My gut tells me silver will outpreform too but what the heck do I know. I think it would be best to keep it diversified. Speaking of that I need to get some Plaitnum.

That's what I'm thinking. In vegas why would you just bet on red or black?

Get your feet wet. Get a taste of both.

08-31-2011, 12:19 AM
Gold is more compact and easier to move around
Silver is better for small things and is easier to fractionalize (pieces-o-eight).

Gold...does not have to be larger coins...check out 1 gram and 5 gram bars.

Silver...get lots of quantity in the 1oz coins or 1oz rounds (or both).

There are places for coins...and places for bars...and rounds.

I'd get both Gold and Silver....50/50 by value.