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 Replies: 22 / Views: 3,117 |
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Valued Member
United States
456 Posts |
Hey guys,
I am relatively new to precious metals investing, and I wanted to get some opinions about how you diversify between precious metals. I've been following the forum for a while, and I really appreciate all of the great info that you all share. My original plan was to set a specific ratio. For example, for every 50 ounces of Ag, I'd add one ounce of Au. However, the more I thought about it, the more I thought it would be better to attain a ratio based on value.
My new plan has been to try to maintain equal values of silver and gold. Then, if one increases higher than the other in price, I'd focus on the other to keep the value equal. Does this sound reasonable? Any suggestion about how one would factor in Pt/Pd? I'd appreciate the discussion everyone. Thanks!
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Pillar of the Community
Canada
1723 Posts |
Welcome to CCF! congrats on jumping on the PM train. In my humble opinion (IMHO) I think your gold to silver ration by values ie 58oz silver to 1oz of gold plan is a good one. I work on that kind of target as well. Pd I don't think I would ever invest in. Its all in the automotive industry. Too one sided for my taste buds. As for Pt.... I've considered it but one step at a time. I need to build my core stack of silver and gold first. After that, if the funds are available, then maybe I will diversify a bit more. But again, my opinion. Everyone's goals, lifestyles, finances and views are different. Figure out what makes you feel secure and go for it. Look forward to seeing your posts. Cheers!
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Valued Member
 United States
456 Posts |
Thanks for the welcome. I appreciate the feedback as well. My investments have been pretty silver-rich up until this point, and now I'm battling whether to cash some silver in for gold or stay the course and save up to add gold later. With regards to your Pt/Pd comments, I personally feel there is a bright future for both of them in an industrial setting reaching beyond the auto industry. Having said that, I am still not sure how these metals will factor into my immediate planning.
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Bedrock of the Community
Australia
21788 Posts |
If you are a trader, you need to look at the SHORT term price graphs for each of the PM's considered, and track them in relation to each other.
If you are an investor, you need to look at the LONG term price graphs for each of the PM's considered, and track those in relation to each other.
In each case, dollar cost average into, and out of, a position.
You need to be clinical with each buy or sell decision.
Would get boring over a long time, unless you intrinsically enjoy doing it.
If this approach becomes too much of a bind, get more into numismatics instead.
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Pillar of the Community
United States
808 Posts |
Welcome SDCrow! You'll find there are several strategies used by the various forum members based on their objectives: investors such as yourself, wealth preservation/inflation hedge, hard money advocates, and so on. I personally agree with the 50:1 Ag to Au ratio though I'm really heavy on the silver side at the moment. As for Pt and Pd, I am not an investor so neither of these metals fit my current strategy. Quote:
Having said that, I am still not sure how these metals will factor into my immediate planning. Very wise statement. One thing we can all agree on is "buy what you know." Edited by coinwatch
07/09/2012 11:54 pm
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Pillar of the Community
United States
538 Posts |
It must be nice being able to even think of buying gold and silver in any measurable amounts but platinum and palladium too? One day I'll get there.
Just wanted to point out that palladium is used a ton in computers too. They use it to plate the platters in hard drives.
I don't keep up with platinum and palladium prices, do they fluctuate much like silver or are they more stable? Based on that I would decide a percentage that minimizes fluctuations as best I can.
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Pillar of the Community
United States
593 Posts |
I would avoid ratios at all costs! The demand for various precious metals is driven by mostly independent factors. The ratio of silver to gold is no more meaningful than the ratio of oil to soybeans. The ratio of oil to corn (because of bio-fuels) is more useful than the ratio of silver to gold. Just my humble opinion. If you are investing in multiple PMs, just buy the ones you deem to be the most underpriced!
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Valued Member
United States
456 Posts |
Thanks for the kind words everyone! I'm not quite sure how to quote someone, so I'll improvise:
sel_69l: Love the info. For the most part I would consider myself an investor. However, I've come across a few things that I've identified had a high premium and bought low and sold high in the interest of adding more ounces. I do enjoy buying, selling, and planning for my next move.
coinwatch: It's nice to get a glimpse of what some other more experienced investors/collectors are doing as I work to find my own way. My industrial/work experience is screaming Pt/Pd, but most everything I read on the forums is focused on Ag/Au.
Williamsonj320: Until a few months ago I had next to nothing. I've tried to stay slow and steady and I plan to continue to do so.
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Valued Member
United States
456 Posts |
I appreciate that point of view as well Lars. I had never really thought of the gold/silver ratio in that light. My experience with Palladium and Platinum, however, has shown me that industrially, they are directly related. Platinum group metals (including Pd) have very similar physical and chemical properties.
If only I knew which one was most underpriced!
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Pillar of the Community
United States
808 Posts |
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Valued Member
United States
456 Posts |
Quote:
SD, here's a link for how to use the forum quote tags as well as "smilies," adding photos and such: Quoting Another Member in Your Post  Thanks. |
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Pillar of the Community
United States
1454 Posts |
SDC,
You'll get good advice here and plenty of it. Sel and CW are two of our resident all-around geniuses, IMO, so you can't go wrong with paying close attention to their opinions. I certainly have.
I don't have much to add that hasn't already been well stated, other than to posit that there is nothing wrong with collecting what you like and buying when you can, with the long view in mind. I've never seen anyone on the forum complaining about how much silver or gold he/she bought ten years ago; but plenty rue the fact that they didn't buy more.
We all hope you'll stick around. And once you learn from the cognoscenti, don't bogart the knowledge. Pass it around liberally so everyone can get a taste ;)
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Valued Member
United States
456 Posts |
Normally I don't participate in forums. I usually sit on the sideline and watch from a distance. But I thought it would be nice to join in on the fun. I've learned a lot already from many of you over the past few months, and I look forward to hopefully becoming a positive contributor to the discussion.
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Bedrock of the Community
Australia
21788 Posts |
YES! I AM an expurt:
'EX' as in a 'has been', and
'SPURT' as in a 'drip under pressure'.
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Pillar of the Community
United States
808 Posts |
SD, traevin is being WAY too kind. Truth be told, I could help everyone here by listening more and talking less.  traevin is absolutely correct in that we do have some very smart and savvy people here on CCF. |
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Pillar of the Community
United States
4008 Posts |
Pd is definitely used in the petro-chem industry for specialty chemical reactions, usually hydrogenations. My guess is that there is a bright future for Pd in industry. It is similar to Pt but less than 1/2 the price.
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Replies: 22 / Views: 3,117 |
Posted 07/09/2012 9:09 pm
