To Buy Gold Or To Buy Silver?

in silver •  7 years ago 

Inflation has been on the uptick recently and that's usually good for precious metals like gold and silver. It's also protection against a weakening dollar. I'm looking to put more cash into precious metals but which one has more upside?

Gold/Silver

goldsilver.png

According to the Gold/Silver ratio, gold is still at pretty elevated levels when compared to silver. We're at 80, levels last seen during the financial crisis and the crash of '16. Could this be an early warning signal of another stock market crash? Personally, i'm starting to take profits on existing stock positions and not adding any new ones unless they look very attractive (GE?).

Silver looks more attractive

Looking at the silver charts, we've seen a huge sell-off from the top. At $16, that's about a third of the high at $48. For a long term play on no leverage, i think $16 is a reasonable price. Downside is capped at $0 with assumed no holding costs. As for gains, i'd be happy with a doubling of the price in the next 5-10 years. Yeah it's slow compared to crypto, but this is mainly a diversification play with hopefully some upside potential to show for it.

Any thoughts from folks who've invested in either?

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I do really love gold! Unfortunately, I don’t have enough money to buy it….. Ha ha! ;)

Silver is looking good too and it is at ~ $16 an ounce :)

Oh! That's really great! I would probably consider the silver now.... ;)

I like silver over gold as well right now. Aside from the monetary possibilities, silver has a lot going for it as an industrial metal. Interesting note, the trading shorts on silver right now are the lowest they have been in years. Price uptick?

Very interesting, @lydon.sipe. Is the short interest you mentioned from the Commitment of Traders report?

Yes. You may be watching the same videos I am, lol.

Thanks for sharing! Haven't seen this video yet haha.

hopefully the best will always happen, so the benefits always accompany us

hopefully the best will always happen, so the benefits always accompany us

For easy reference in the future ... 6/8 correct