Gold and silver. Discuss

Valproate · Feb 21, 2011

Interesting. It looks like everyone likes gold. I should've put a poal option to see if people actually own the stuff, the gold miners, or neither. Gold's up to $1409 overnight. Silver is up 5% to $34 currently. Personally I like gold more because it is shiny and doesn't oxidize

mikeman · Feb 21, 2011

Both are good investments, however Silver is actually a better value. If anyone wants a good read i would suggest Michael Maloneys book "Gold & Silver". Some of the stuff is very interesting. Hoping for some funds to buy more silver this week...kind of hoping for a pullback

Gibonius · Feb 21, 2011

How does someone look at a commodity that's trading at 4x what it was 10 years ago and see "buy" instead of "bubble"? Are you just relying on the irrationality of the market to push the price up indefinitely?

otc · Feb 21, 2011

Originally Posted by Gibonius

How does someone look at a commodity that's trading at 4x what it was 10 years ago and see "buy" instead of "bubble"? Are you just relying on the irrationality of the market to push the price up indefinitely?

pretty much. I have thought for a while now that gold would be a good way to make a bunch of money off the paranoid fools who don't understand economics...of course I have been too afraid of the bubble bursting to actually take a large position. I'd rather put my money in something that is increasing somewhat due to fundamentals rather than pure speculation.

Gibonius · Feb 21, 2011

The price of gold since 1974:

Housing prices since 1970

I'm far from the most knowledgeable investor so if I'm missing something I'd love to hear it, but this seems to be a fairly obvious bubble being inflated.

mkarim · Feb 21, 2011

Originally Posted by olualbert

In today's economic downturn, and I have reiterated this comment before, it makes perfect sense to acquire as much physical gold and silver as a substitute for declining dollar. It is a safeguard for our declining currency.

The Almighty dollar is declining?

Seriously, gold is expensive I think. I missed the run-up in silver over the past 2 years. Is it still a good buy?

mikeman · Feb 21, 2011

You guys should check out that book I mentioned earlier. You might think about it differently. Gold and silver never really lose value either.

mkarim · Feb 21, 2011

Originally Posted by mikeman

Both are good investments, however Silver is actually a better value. If anyone wants a good read i would suggest Michael Maloneys book "Gold & Silver". Some of the stuff is very interesting. Hoping for some funds to buy more silver this week...kind of hoping for a pullback

Agree that silver is better value but is there more upside?

mikeman · Feb 21, 2011

Originally Posted by mkarim

Agree that silver is better value but is there more upside?

I believe so. Historically the gold/ silver ratios aren't even close to what they should be. Not to mention silver is used in industrial fabrications. So really there will be much less silver for investors in the future. Just do some searches and you will find loads of information pointing at a higher price.

Valproate · Feb 22, 2011

I'm in both gold (GDX, GDXJ) and silver (PSLV). The silver position is for pure and unadultered speculation/gambling. How many of you guys actually own either?

Valproate · Feb 22, 2011

I forgot to add that the silver:gold ratio is 41:1, which is really low. In the past century, silver usually ran at 45:1 gold. In the last 10 years, that shifted to as low as 65:1 last year.

In the ancient past, silver:gold was about 17:1, which is close to the elemental composition ratios. I don't think we'll see that ever again because gold==money, while silver is more of a commodity than money.

I have much more gold exposure than silver.

Bhowie · Feb 22, 2011

Originally Posted by mikeman

You guys should check out that book I mentioned earlier. You might think about it differently. Gold and silver never really lose value either.

Oh hai there '06 housing market, how have you been?

mikeman · Feb 22, 2011

How about a hedge against inflation? The fiat currency we have is garbage, why not invest in real money?

Crane's · Feb 22, 2011

Originally Posted by Milpool

Okay, would you have preferred I use "corrosion" instead of oxidation?
Same same. What makes Silver useful in electronics is the fact that even if it's corroded you'll still make an electrical connection.

Teacher · Feb 22, 2011

Gold and silver. Discuss

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