Gold

FISMA wrote: »

I believe the announcement of QE3, QE2.x, son of QE, or whatever it is called will push Gold to and through $2k.

Did you see today's action? Bernanke says nothing about QE and the GLD drops almost 3%.

I plan to get back in if/when we pull back around $150 on the GLD. It's a support level that is sticking and tested.

We'll see!

BTW - just bought the physical.

Look to buy at 1423 dont ask me why :P

coolabuaile wrote: »

I would recommend you spend 10% of your savings on silver. The historical price ratio between gold and silver is 1:16. Right now it's more like 1:60! I spent a small few euro on silver by sheer fluke 5 years ago and have seen my investment triple. It was only recently that I started seriously reading up on this stuff, very confusing but if you can filter most of the crap talk out, it seems silver is the way to go.

Why assume that silver will go up in order to 'correct' the historical ratio?
Wouldn't a fall in gold not have the same outcome?

Did your 'serious reading' reveal any reasons why the ratio might not revert to traditional positions?

coolabuaile wrote: »

In answer to your 'question', Prices will, I think, go back to what they were in a few years. Do you see this happening sooner?

I have no set opinion to be honest, I was merely questioning the certainty of your pronouncement, and in particular trying to point out that if, as you seem to assume, the traditional ratio will eventually be restored, there are three ways for that to happen - 1) gold comes down, 2) silver goes up, 3) a combination.

In addition also there may be factors which will result in the traditional equation never being met again.

Oh, and btw - have you considered what would happen to your equation should any of the central banks around the world, who presently hoard a significant % of their reserves in gold, either decide to change that or be forced to change that through economic circumstances?

I do believe that we are suffering a slow financial death here and you don't have to be a trading or currency guru to know that; open a history book. Plant the spuds, buy the metals and hang on tight (in slow motion)

stackerman wrote: »

Oh dear, here we go again.
Seeing as we are on the "have you considered" route

This mess can't be fixed, and will result in high (higher) inflation at the least. If you have young kids, and can afford to - put their children's allowance into PM's. It will cover most of their education (IMHO).

I think you misunderstand the purpose/intent of my questions.

Poster, with 2 posts at the time, appears from nowhere with advice to stick 10% of your cash into something he thought was a good idea.

He could be the next Messiah of investment for all i know, or he could be a shill or he could be clueless. Its hard to tell, with just 2 posts.

It is implicit in his post that the gold/silver ratio will return to historical amounts - but he didn't cite any reasons/research for being so sure that that would be the case.

Letting that slip, he also failed to attempt to explain why the rebounding of the ratio could only happen in one way, when mathematically there are three ways for it to happen.

I wish him well with his investment, but just thought that its worth it, for those who randomly read these kind of threads, to be aware that other possibilities exist.

OfflerCrocGod wrote: »

Gold is risk. It's been following all the other commodities in a downward direction.

Risk is not undervalued if the world is plunged into a 1930's Great Depression.

So true, and there's risk attached to everything in life. Someone recently questioned the reason why I suggested a 10% investment in silver. It's because you should never put all your eggs in the one basket. Try a little bit of everything, be more self sufficient. I may not be right in everything I do but I know I won't go hungry and I know I have something to barter with. Isn't that what it all boils down to? It's not about getting rich on the world's misery, it's about being able to take care of yourself and your family if the worst comes to the worst. Nothing wrong with a little caution whilst remaining optomistic!:)

coolabuaile wrote: »

Read what you quoted carefully. That is the answer to your question. In layman's terms, the price of precious metals will of course fall again, but not just yet. Not as long as we hear the words quantitive easing in the news. All I am saying is that it's worth anyone's while to put a little of their savings into physical metals. It appears that you are taking offence to whatever I post. I didn't mean to offend or anger you in any way.

To be fair that isn't what you said at all. You specifically said to lump money into silver on the basis its price would rise to meet a historical ratio with the price of gold.

I was merely questioning the reasoning behind your assumptions, I'm not in the least offended.

grover_green wrote: »

silver is not a ( currency ? ) in the way some say gold is , its value largely depends on industrial demand , it went along for the ride with gold for a few years there but has since decoupled somewhat , its at $30 at the moment and was close to $ 24 not so long ago , it went to almost $ 50 dollars in may 2011 then collapsed overnight , its a metal which is incredibly maniplulated from a price POV , demand is slowing from an industrial POV and its unlikely to shadow gold in its continual rise to any large degree

i would not be amazed to see gold @ $ 2500 within five years , i would be utterly astounded to see silver @ 75 and surprised to see it past $ 50

gold is a much better bet

Silver didn't "collapse" overnight, there was a price correction - big difference. Silver and gold manipulation will not last forever - it can't.

Silver has been outperforming gold in recent times which I think will happen for the short-medium term but gold will begin to outperform after that.

If I had to give advice to anyone, don't be left exposed to the coming world economy collapse by holding paper money. At least have some money in real tangible assets such as gold, silver and land. Your pension would be totally wiped away but you still have gold, silver and land. Silver is great for the majority of people who don't have a large sum to invest, compared to gold's expensive price.

I can't believe that some people were saying that the dollar is a safe-haven currency. Are you taking the p!ss?! Seriously, the only reason why Bennie Bernanke keeps printing money is because he knows there will be demand for it when people buy oil. When the Petrodollar collapses, which I think could have in less than 2-3 years time, the dollar collapse. The world's monetary system is complete bullsh!t. Imagine that the US can print money to buy oil, and the country that sold the oil are obliged to invest their profits in US Bonds! Double the fun for the US, but double the trouble when the likes of Iran, Iraq and Saudi Arabia decide to refuse dollars for the oil. Now this is only one reason why the dollar is sure to collapse, and seen as every currency in the world is based on the dollar there will be a world economic collapse. China are buying gold and silver, hoping that they will be able to back their currency buy PM's when something like this happens.

That's my rant over, hopefully it's changed the perspective of some people out there.

PaddyTheNth wrote: »

While I take the point that tangible assets are superior in times of turmoil, realistically if things got so bad that markets collapse/governments start appropriating any PM assets in the country, it is not going to be easy for the majority of people to find a market for their gold/silver etc.

Buy land, plant crop, grow cow, build mud hut:pac:

I agree with you on that, but the PM's would have the function of preserving your wealth until things get good again, instead of having no wealth at all.

Great advice at the end I must say! Food water and shelter would be the most valuable assets during a crisis - I have to say that Ireland is much better prepared than >75% of the world in respect to this.

DarkDusk wrote: »

If I had to give advice to anyone, don't be left exposed to the coming world economy collapse by holding paper money. At least have some money in real tangible assets such as gold, silver and land. Your pension would be totally wiped away but you still have gold, silver and land. Silver is great for the majority of people who don't have a large sum to invest, compared to gold's expensive price.

Better a year early than a day too late.

grover_green wrote: »

silver is not a ( currency ? ) in the way some say gold is , its value largely depends on industrial demand , it went along for the ride with gold for a few years there but has since decoupled somewhat , its at $30 at the moment and was close to $ 24 not so long ago , it went to almost $ 50 dollars in may 2011 then collapsed overnight , its a metal which is incredibly maniplulated from a price POV , demand is slowing from an industrial POV and its unlikely to shadow gold in its continual rise to any large degree

i would not be amazed to see gold @ $ 2500 within five years , i would be utterly astounded to see silver @ 75 and surprised to see it past $ 50

gold is a much better bet

I strongly disagree.. Silver will easily see $75 in the next 5 years...

Roonbox wrote: »

You need to be more worried about inflation.

I am very worried about inflation! It's just that Ireland would be a better place to live in the case of a economic meltdown, when we would have to live off the land and not depend on supermarkets to fill our bellies.

I see silver over $100 within 5 years definitely, gold over $2,200 next year also.

bacon? wrote: »

DarkDusk wrote: »

I am very worried about inflation! It's just that Ireland would be a better place to live in the case of a economic meltdown, when we would have to live off the land and not depend on supermarkets to fill our bellies.

I see silver over $100 within 5 years definitely, gold over $2,200 next year also.

I'm with DarkDusk and Roonbox, there's been a lot more people turning to silver the past while.

It's hard handing over a large wad of cash for a small amount of gold when the same gets you a lot of silver, obviously that's a mental barrier of mine and its due to the rarity of both metals etc

But from an investment perspective ye silver is like gold on steroids or leveraged, usually if gold moves up 10$ silver will move say 1$, but as a percentage wise the gains (or losses) are better with silver

I'm surprised this thread hasn't been resurrected yet after whats happened in the last couple of days..

Absolute carnage in the Gold Market today