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overtheedge
Member since May 2012
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has posted a comment on the article :

The ideal percentage allocation between gold & silver

- Bron Suchecki - Perth Mint

Of course this depends on the future to mirror the recent past.
This is the problem with technical analysis.
You are betting the future on the past actions of the herd of gamblers who were betting with paper using ridiculously low margins.
Do you honestly think that is such a wise course of action?

Compound this with just a few decades of data and suddenly you are surveying the financial world through the equivalent of a toilet paper tube.
Even 3 decades of data is a tiny subset of the past.

I would offer a different perspective.
Look back 5, 10, 20 centuries.
What was the operative coin of the realm?

Hint, it was silver.
Gold was used for very large transactions and provided a more compact store of wealth.

If, nay when the world economy finds paper is worth the value of paper, what would be your monetary needs as commerce returns after the carnage?
I am betting on my need for silver and am (trying to) act according.
Yet at the same time, I desire gold for building generational wealth.
Therefore I am faced with somewhat immediate versus long-term needs.
The question's answer may not be a percentage, but rather a quantity.

How many ounces of silver? How many of gold?
Would fractional ounces or grams be a better choice than whole ounces?
Maybe a mix?

The current Ag/Au ratio is 75:1.
What was it a century ago? 10 centuries ago?
What will it be next year or five years from now?
How does one compute percentages when the data set for the future is absent?

Myself?
The operative description is enough.
How will I know when I will achieve that level?
When further accumulation becomes prohibitively expensive, what I have will have to be enough no matter how meager it may be.

One thing to always keep in mind.
Should the world financial status stabilize and everything becomes fine in Mudville,
gold and silver will continue to be excellent collateral.
Why do you think central banks buy and hold gold and maybe some silver?
Were it just because it is pretty, they could buy shiny trinkets from China for far less.
And any saving vehicle beats no savings at all.

Do as you will, but choose wisely.
It may be later than you and I think.
Or perhaps I am an just old fool who likes shiny pet rocks.
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And the above, Mr. Suchecki, is why I only gave your article 4 stars.
Be of good cheer though. I rarely rate any form of technical analysis that high.
I contend the auguries of goat entrails only tells you the goat is dead.

Commented 3166 days ago

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Beginning of the headline :There are three major types of Perth Mint Depository investor: Those that only buy gold Those that only buy silver Those that buy 50% gold and 50% silver There are others who include platinum, or have different percentages, but the above three types are a significant majority of our clients. I find it interesting that most investors who weren’t strong goldbugs or silverbugs and couldn’t decide between them went with a simple 50/50 strategy. This begs the question: is this a good strategy and w... Read More

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