Gold or Silver ?

Discussion in 'Survival & Sustenance Living Forum' started by Vincine, Sep 26, 2011.

  1. Vincine

    Vincine New Member

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    9-26-11 PM.
    Gold is $1600, Silver is $30.
    Gold took a small hit.
    Silver's taking a dive, again, like it did on 4-29-11.
    Which are you buying, if any?
    Which would you buy if you could?
     
    Last edited: Sep 26, 2011
  2. JTJ

    JTJ Well-Known Member Supporter

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    Gold is $1600. I would buy it if it were $160.
    I am buying lead, brass and steel. Maybe some plastic too.
     

  3. Poink88

    Poink88 New Member

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    This is just my personal check/method. If the gold to silver ratio (price per oz) is >=40 I buy silver. If it is <40, I would buy gold but since it is so expensive, I just wait until the ratio changes to >40 :D

    I also try to project future value and use that as my reference when to buy. I like the current prices so I bought more silver. I like buying when the unit price is low.
     
  4. shadamai

    shadamai New Member

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    I personally like silver because it is something that ordinary people can afford to purchase occasionally when they have a little extra money to put into it. Another reason I prefer it is because if I ever needed to barter with it, I could do so, especially with the smaller increments, like 90% silver U.S. dimes. With the price of gold, that would be a lot harder to do, unless you were making a big purchase.
     
  5. dunerunner

    dunerunner New Member

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    As an investment, precious metals aren't for me. They don't cut it for SHTF either, I prefer ammunition and alcohol for that!

    I do, however own some silver. Morgans, Walkers, and Franklins purchased back when silver was $15 an ounce! :cool:
     
  6. Vincine

    Vincine New Member

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    ???

    PMs aren’t an investment; they’re a store of value.

    It’s true you can’t eat PMs, but you can’t eat bullets either. When it comes time to trade it’s a lot easier to carry coins then the equivalent value of; rounds, textiles, bread, meat, or whatever, and unlike food, it’s not perishable.

    The question is, at this ratio, do you go for gold or smaller value silver coins that are more easily used for currency?
     
    Last edited: Sep 26, 2011
  7. bkt

    bkt New Member

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    Bought several ounces of silver today. Wanna buy more tomorrow.

    Historical gold:silver ratio is 1:16. Current ratio is 1:52. Gold isn't overpriced; silver is undervalued. Hence, I'm buying silver. Feels good to get some new metal other than brass, copper and lead. :D
     
  8. shadamai

    shadamai New Member

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    Just out of curiosity, what have people found the best place for buying silver to be?
     
  9. bkt

    bkt New Member

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    I've done some bulk purchases with friends through apmex.com. We got what we wanted at a good price promptly. No complaints.

    Other times, I buy locally from a coin dealer near me who doesn't charge too much over spot. He has bullion coins and bars including 10 and 100 ounce bars.
     
  10. c3shooter

    c3shooter Administrator Staff Member

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    You can check with some of your local coin dealers, and see what they have- generally worn US coins, not real collectors value, know as junk or melt silver, valued only for value of metal. I have a couple of local dealers that sell to me at spot- for cash.
     
  11. Jimmy

    Jimmy New Member

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    Gold is too much for my blood, but I do have some silver. Mainly coins and some bars I purchased maybe 20 yrs ago. Only 20lbs, weight wise. Not much in the scheem of things really. I tend to think if you bought PMs when they were real low in price as they were 20-40 years ago, that they in fact are an investment. I have 5 $20 gold coins given to me by my Great Aunt before she died in '69. In '72 when I got out of school, seems it was $39 oz. They were minted in the early 1900s. Big move since then.

    I too see no use for PMs in a sure enough TEOTWAWKI scenario. No doubt I can't eat lead, but I can protect myself, have a viable trade item and can take game if need be.

    I the main reason I have some silver is, most of it has been mined according to most sources. It will become more valuable down the road for industrial uses. My main metal I have now is nearly 30 yrs worth of #1 copper. Cut-offs from all the services I hooked up thru the years. Close to 1200 lbs. That's my liquid $$$ if I get in a bind $$$ wise.

    Jimmy
     
    Last edited: Sep 27, 2011
  12. Poink88

    Poink88 New Member

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    TEOTWAWKI is the extreme SHTF scenario. If that comes, who cares what you invested on?

    I prepare for what I think is most likely to happen and IMHO it is dollar collapse or natural disaster (earthquake, volcanic eruption, flooding, hurricane, drought, etc.). Third world countries went and are going through; civil war, famine, flood, earthquake, economic upheaval, etc. and I hope we can handle it the same way (or better than) they did/do.

    Like BKT, I believe silver is undervalued that is why I preserve the value of what little I have by converting it to silver when I can.
     
  13. Poink88

    Poink88 New Member

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    While you are correct "historically"...in fairness 1:16 ratio has not been around since 1880. The average ratio the past 130 years is 1:48. The average ratio the past 50 years is 1:50.

    ***These are all based on data I collected from Kitco.

    Given all these, I still use 1:40 for myself as my gauge.
     
    Last edited: Sep 27, 2011
  14. Jimmy

    Jimmy New Member

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    Guess that was the point I was making. Been thru 6 major hurricanes, Betsy thru Katrina. So that is what I prep for more than anything.

    I too, believe silver is undervalued. And for some I guess it is a base for wealth. At my age and place in life, I'll take my mini farm/retreat over any metal for really bad times.

    I'll trade/barter veggies/trade items for other tangable items, as we do now.

    Good thread.

    Jimmy
     
  15. Poink88

    Poink88 New Member

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    Given a choice, I would go with a mini farm (over silver) too...but being a city worker, it is not an option for me right now. Maybe someday all my silver will be sold to purchase a small patch of land. :)
     
  16. bkt

    bkt New Member

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    *shrug* OK, that's fine. The 1880's was our silver boom when silver lost a lot of value due to such incredible abundance in North America. But around 95% of all silver ever mined has been used in industry in ways where it cannot be recovered leaving less silver above-ground today than gold.

    You're welcome to buy whatever you want for whatever reasons you want. :)

    Looking at it long-term over a few thousand years, the ratio has been about 1:16. If we could get JPMorgan-Chase and other institutions to stop manipulating PM prices, I think we would see a significant rise in silver price which would get us much closer to the old ratio rather than the 1:52 (or so) we're at today.
     
  17. Poink88

    Poink88 New Member

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    This is the main reason why I am banking on silver. We are supposedly using more than we can mine right now (in medical, electronics, etc. application). In effect, depleting the stockpile we have every minute.
     
  18. JonM

    JonM Moderator

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    neither. now isnt the time to buy and hold precious metals. the time to buy gold was several years ago. now is the time to be selling gold like all the big investment firms are doing. thats where all the gold is coming from. when gold goes back to its normalish levels thos same firms will be using the money they made selling gold now to buy cheap gold when it crashes.

    its going to crash overnite at some point.
     
  19. bkt

    bkt New Member

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    That's extremely good advice if the foundation of your economic system - the dollar - is in good shape. But it isn't.

    The purpose of holding precious metals is a hedge against the dollar faltering big-time; it is a store of wealth that will carry over regardless of what your investments and wealth that are based in dollars might do. To expect dollars today to increase their value in the future thus enabling us to buy silver at $5/oz again seems a little too optimistic for my blood.

    It was great buying silver under $10/oz. But in light of the fact it has been well into the $40's recently, for it to dip below $30 implies a pretty reasonable buying opportunity, IMO.
     
  20. Gordo323

    Gordo323 New Member

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    I have a lot of silver I bought below $10/oz., I think I'll just hang on to it, other than some that have gained some numismatic value.
    Can anybody tell me why 40% silver coins have a spot price higher than 90% silver coins? Just curious.