Gold Silver ratio - time to buy silver

tropic_of_Username015

EdGasketTheSecond said:

How could I lose most of it in gold/silver?

Historically, the largest fall in the inflation-adjusted gold price is well over 80%. 80% of 70% is more than 50%.

I'm not going to debate this "velocity of money" cr*p.

bowlhead99

EdGasketTheSecond said:

How could I lose most of it in gold/silver? 

Well, silver is a terrible store of value, as evidenced by the fact that stocks are falling through the floor and major world governments have had negative interest rates and a decade of quantitative easing / money printing and recently announced they would give out trillions of free money or loans, yet you just told us that silver is cheaper now than it has ever been in the history of time.

£150k of it weighs half a tonne, so nobody is going to put their life savings in silver and drop it off at their bank's safety deposit box. Industrial demand is down.  Like the other poster above, I am not buying your 'unstoppable velocity of money' argument which sounds like the sort of thing that would be said by some pump and dump merchant that one shouldn't take seriously. Sounds like someone desperate for a hail mary get rich quick scheme to bail himself out of a self destructive lossmaking investment habit.

EdGasketTheSecond

tropic_of_Username015 said:

EdGasketTheSecond said:

How could I lose most of it in gold/silver?

I'm not going to debate this "velocity of money" cr*p.

OK so what effect on prices do you think creating trillions of dollars and handing out cash to every citizen is going to have? Come on use your brain.

Username999

Ed
Are you buying Physical Gold/Silver?

EdGasketTheSecond

bowlhead99 said:

EdGasketTheSecond said:

How could I lose most of it in gold/silver? 

yet you just told us that silver is cheaper now than it has ever been in the history of time.

No, I did not say that. I said relative to gold it is the cheapest it has ever been throughout history; hence the title of the thread. Of course its not the absolute cheapest as its currently $12 and its highest has been $47 and its certainly been at $4 in the dim distant past.

How's your 'buy and hold' and 'time in th emarket' strategy working out?

benbay001

EdGasketTheSecond said:

Of course its not the absolute cheapest as its currently $12 and its highest has been $47 and its certainly been at $4 in the dim distant past.

I thought the advantage of precious metals is the lower volatility?
A 74% fall from peak is speculative stock teritory.
And AFAIK, unlike stocks there are no measures of relative value, such as PE, price to book, net debt etc.
I guess you can look at charts of previous prices, but you can do that with stocks and it doesnt tell you much.

EdGasketTheSecond

The idea of gold and silver is to preserve value when all else around is crumbling. An oz of gold will always have value which is more than can be said of any stock and any fiat currency.

bowlhead99

EdGasketTheSecond said:

bowlhead99 said:

EdGasketTheSecond said:

How could I lose most of it in gold/silver? 

yet you just told us that silver is cheaper now than it has ever been in the history of time.

No, I did not say that. I said relative to gold it is the cheapest it has ever been throughout history; hence the title of the thread. Of course its not the absolute cheapest as its currently $12 and its highest has been $47 and its certainly been at $4 in the dim distant past.

How's your 'buy and hold' and 'time in th emarket' strategy working out?

My strategy is working fine I suppose, though I did liquidate a number of positions in individual stocks and reposition away from some 100% equity funds over the last few weeks, which proved a good call. 

I have bought some more RCP at £13.01 today which is 40% off what I was paying last month, they will have some losses in their equity and credit strategies but remains to be seen whether an investment serves me better there than sitting as 10kg of silver on my desk.

EdGasketTheSecond

RCP - RIT Capital Partners

From their half-year report: "Useful contribution from gold-related investments"

Good luck with it; their price held up initially but has dropped off a cliff lately. I wonder how good they are at wealth preservation. Always interested in what other people are investing in.

tropic_of_Username015

EdGasketTheSecond said:

so what effect on prices do you think creating trillions of dollars

What effect did that have last time?

and handing out cash to every citizen is going to have?

When that cash is probably less than they're losing in wages, and they're also in a lockdown which makes many kinds of spending impractical? Hardly sounds like conditions for a spending boom.

You've apparently made investment decisions that destroy part of your wealth before, and yet you're so confident that you're not doing it again: why? I'm not confident that you are doing it again, but I am that you are taking that risk. The best way to avoid destroying one's wealth is to avoid both extremely unbalanced portfolios and making big sudden changes to one's portfolio. I won't be doing more than a few tweaks at the margins of my portfolio, precisely because I don't think I'm an investing genius.