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Thread: how many silver ounces to gold ounces(ratio) should be owned?.....

  1. #1

    Default how many silver ounces to gold ounces(ratio) should be owned?.....

    I'm curious as to your opinions on how much silver you should own compared to the gold you own...


    lets keep it simple and use 1 ounce of gold as our staple..

    how many ounces of silver should also be owned?

  2. #2

    Default

    Quote Originally Posted by gold stacks View Post
    I'm curious as to your opinions on how much silver you should own compared to the gold you own...


    lets keep it simple and use 1 ounce of gold as our staple..

    how many ounces of silver should also be owned?
    For no particular reasons that I could justify or explain I own just shy of 33 ozs of silver for every ounce of gold. I continue to buy both but I don't have a target ratio I'm trying to maintain.

  3. #3

    Default

    Gold Stacks,

    I realized I didn't answer your question earlier as for an opinion as to what the silver to gold investment ratio should be. Let me answer that by sharing the advice I got (and followed) when I started acquiring physical PMs just over two years ago. I sent an email to Richard Daughty, author of the "Mogambo Guru" economic newsletter, asking the very same question you did. Below is his response.

    ----------------------------------------------------
    Dear XXX,

    Thanks for the nice compliment about my MoGu!

    And as for my recommendations, I recommend that you immediately change your ratio of gold to silver, and I say this because you obviously think it is the wrong ratio, or else you would not be asking me about it, and that is why you are inquiring about the "correct" one.

    And you did not specify if you were talking about the ratio of ounces or the ratio of market values, so you have to make a decision about that, too.

    So, getting started, make it 50-50 today, sleep on it, and see how you feel about it tomorrow morning. If you are still unsure, keep changing it, more gold less silver, less gold more silver, until one morning you wake up and say "That's the ratio! I feel good! So screw the stupid Mogambo! I don't need his stinking help anyway! You hear me, Mogambo? Screw you!"

    -Mogambo

  4. #4
    Join Date
    Jan 2007
    Posts
    2,461

    Default silver - gold question

    Quote Originally Posted by gold stacks View Post
    I'm curious as to your opinions on how much silver you should own compared to the gold you own...


    lets keep it simple and use 1 ounce of gold as our staple..

    how many ounces of silver should also be owned?
    This is a very difficult question, I studied the 2 metals for years trying to get a handle on what % in each for myself.
    I pretty much gave up and finally decided on 50/50 in $ terms.

    What makes gold more promising:
    • It is a standard easily used to back currency by the CBs (if they ever come to see the light)
    • It is easily portable to have large $ in small sizes and does not tarnish.
    • Better jewelry and safe-haven factors.


    What makes silver more promising:
    • 80+% of what is mined is consumed and lost forever due to industry demand which is increasing
    • the current 50 ratio seems to make silver a better bargain as it is not anywhere near 50 times more abundant than gold in above / below ground supplies
    • might be better as a future medium of exchange due to larger coins at smaller $ face values
    • the price seems lower than what is should be based on mining costs for it


    In the end you are going to have to make up your own mind on this, but feel free to add to / adjust / debate the list (anyone) as you see fit.
    Last edited by FunnyMoney; 09-23-2007 at 01:14 AM.

  5. #5

    Default

    I think there is only one reason to be concerned about that: you plan to trade the ratio. (See my first post if you don't understand that.) Since you don't know right now if the ratio is going up or down, you put half your funds into each so you are positioned to trade whichever way it goes. There is also timing. If you think gold will reach a peak before silver (which I think it will) you would put all your money into gold and swap for silver when the ratio reaches a peak. Then swap your silver for gold when the ratio goes down.

    Most often you end up with a lot of silver because you only had a few bucks to invest and wanted to get it invested before inflation ate it away. You can expect silver to jump much higher than gold (I'm guessing 8.5X gold and 15X silver from this point) but you have to wait a couple years longer for silver to reach its peak.
    You need to learn The Attitude!
    Then go HERE for the knowledge
    to back up your attitude.

  6. #6

    Default 130 to one

    I have 130 ounces of silver to gold. However I have a lot of gold stocks relative to silver stocks. The only silver stock I have is Genco Resources. Whereas I have exposure to gold trough auy and aem. I had GG but I sold it and rolled it into more auy. I figure auy is depressed because of the merger and once that is over it should out perform.
    Why do governments insist on charging capital gains tax. It is insulting. Capital Gains result from inflation which is created by government printing money which in itself is known to be an indirect tax. To tax the capital gain is double taxation and its unfair. Somebody please stop the government from taxing capital gains.

  7. #7

    Smile 400 to 1

    the primary reason for me to have any gold is ease of transportation. And, it looks and feels nice

  8. #8

    Default

    13-1
    Cause it's the best ratio

  9. #9

    Default Fools seldom differ

    Quote Originally Posted by foolsgold View Post
    13-1
    Cause it's the best ratio
    14 to 1 Just because it turned out that way.
    I can think of lots of things to buy / trade for an oz. or two of silver WTSHTF.
    What the heck am I going to buy / trade for an oz of gold? As my wants and
    needs are small.

    My Glass is Always Half Full: Mixed 14:1

  10. #10

    Default

    50:1 at the moment, but going to 45:1 to ride the Gold bull then trade back to 65:1 as silver builds up speed

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