Gold Silver ratio - time to buy silver

EdGasketTheSecond

The Gold Silver ratio is currently at an all time high making silver relatively cheap to gold, cheaper than it has ever been throughout history. If you want protection in these uncertain times I would recommend gold & silver and particularly silver right now.

https://www.kitco.com/Gold_Silver_Ratio_Charts/gold-silver-ratio-charts.html

MaxiRobriguez

Not really a surprise. Gold got bought up in cheap money era, and silver is falling now with reduced business activity and silver being more of a use in manufacturing. 
I don't think the gold/silver ratio is out of kilter based on that. 

Reg_Smeeton

Ed, I have some magic beans for sale. Are you interested?

cloud_dog

So, is silver cheap or gold is expensive?

EdGasketTheSecond

Both offer to preserve value unlike stocks, bonds, and fiat currency. The relative value of silver to gold makes silver a bargain from that perspective.

tropic_of_Username015

Ed, what percentage of your portfolio is now in gold, silver and miners of gold and silver?

EdGasketTheSecond

It's increasing daily as everything else is dropping. I'd say 20%, I only started switching of late. In sterling terms gold is high but silver relatively cheap still.

tropic_of_Username015

Thanks. Around 20% gold & silver is certainly a lot, but of course implies about 80% of your portfolio is in other things. A bit different from the impression your recent posts might give.

EdGasketTheSecond

Well I'd like a higher percentage and would be quite happy with 70% gold and silver right now. I'm working on it.

tropic_of_Username015

70% would be crazy, unless you have far more money than you need and don't mind risking losing most of it.

But why aren't you at 70% now? Perhaps you have more sense with your money than your posts suggest.

EdGasketTheSecond

How could I lose most of it in gold/silver? They will always be worth something; most likely a lot more than anything else. I believe we are headed for hyperinflation and bonds/cash will get wiped out. What do you think is going to happen to inflation if Trump keeps dumping money on people and creating Trillions of USD? Once the velocity of money picks up they won't be able to stop it and can't afford to raise interest rates due to the huge deficit. Then they will either default on their bonds or inflate the debt away. Which do you think they will choose?

PS not at 70% now as I say, still working on the best way of doing it (ETF's or third party or physical bullion/coins), still liquidating stocks which is somewhat painful, always hoping for a better day to do it on but they just keep falling. For ETFs in GBP I use iShares SGLN, SSLN, and SPGP which is gold mining fund. For third-party I am looking at BullionVault.