Gold Silver ratio - time to buy silver

bowlhead99

EdGasketTheSecond said:

MaxiRobriguez said:

EdGasketTheSecond said:

Silver up almost 70% since my original post on 18th March. Looks like a melt-up for gold and silver. No other safe haven from inflation with further QE being announced in Europe (EU 750Bn) and above inflation pay rises in the UK for public sector workers (3.1%).

Quite a few investment opportunities are on similar trajectories in the same timeframe.... 

But were they flagged up on this forum in advance?

Yes. On this thread on 19 March I confirmed I'd just bought RCP at £13.01 and HVPE at 'about £9' (actually £9.289).

The former is a mixed asset diversified investment fund now priced at £18.40 plus 17.5p dividend along the way (ex div and paid in April) = 43.5% return.
The latter is a globally-invested private equity fund-of-funds now priced at £16.08 = 73% return

Your response was that you were avoiding any sort of fund for the forseeable future. 

The return on Silver since 18 March (£16.10 per oz from £10.20 the hour after you posted your thread) is 58%, which is nearer the lower of the two funds I mentioned than the higher.  The 'almost 70%' you mention is in dollars, but a dollar bill that was then worth 85p is now only worth 79p, so the return on buying a bar of silver with pounds is lower than you suggest.  If I measured the dollar return of my two funds, they would be higher than the performance I claimed above.

The return on Gold is £1440 from about £1250, so about 15%.   So you were right that silver was 'cheap' relative to gold, but not necessarily cheap compared to other financial instruments.

Prism

Although Ed has maybe gone a little over the top with a precious metal allocation its certainly something that most of the well respected wealth preservation funds have an allocation to. 70% since march 18th is a very good return. I have one fund (Smithson) which is almost at that return but several which are quite a bit lower so well done on the timing. Scottish Mortgage is probably the equities winner since that date at close to a 100% return.