Asking to those that understand the ins and outs of the precious metal markets.
Wanting to drop $5K into precious metals. cheapest silver ounce is $30.61 which tells me I'm loosing $4/ounce because of the spot price. Similiar idea with gold. Help walk me through the idea of purchasing these items even though they are seemingly dropping in value as soon as I buy them.
Also, how would you divide your precious metal portfolio 20/80 gold/silver. 50/50? and is that by dollar amount or by ounce, i was thinking of buying 2oz gold, and 20-25 ounce silver. gold was going to be 1oz bars, while silver 1oz coins.
please help me make sense of this, I know our paper dollar is loosing value and will continue to do so.
EDIT/UPDATE: I pulled the trigger, and I put PedoJoes stimulus money into silver. Bought 140 ounces
Silver has been the primary market manipulator for over 150 years. For all of history its value relative to gold has closely matched their respective availabilities (10:1). This changed over 200 years ago when the first Central Bank was created in America by the Rothschilds (1810ish?). It went from around 10:1 gold:silver price to 15:1. This was the first silver manipulation.
Most people had silver, the very wealthy stored their wealth in gold. This market manipulation further separated the two groups. It remained at 15:1 until the coinage act of 1873 when money was no longer tied to both gold and silver, and became tied to only gold. This instantly made an even bigger jump in the gold:silver ratio and subsequently the wealth of the rich v. the average person.
This trend continued, through various acts and restructuring of our financial system (Federal Reserve, Stock Market, Acts, Laws, edicts, etc.) until about 1933 when the separation became about what it is today ~75:1. It has varied between 50:1 - 100:1 throughout that time. This has been done to manipulate markets. It has very little (probably nothing) to do with real supply and demand.
In the past 100 years the demand for silver has increased over the demand for gold. Our technology uses silver for its superior thermal and electrical properties. In a normal market the price of silver would have increased relative to gold. In our market it has only fluctuated up and down, regardless of use.
Once we throw off our Luciferian chains, the prices of these metals will adjust to their real value. If we use them in a new precious metals standard the price will stabalize and inflation will become related only to availability of the metals. Deflation is even possible, but really, things like inflation and deflation are not really important unless it is a huge variance.
In my estimation the price of silver to gold will probably be in the 10:1 ratio again, which makes silver a much better investment than gold. Nevertheless, the price of gold is probably substantially suppressed. When you look at inflation adjusted values of gold and silver the prices should be around 10k/oz for gold and 1k/oz for silver. If you look at it relative to other metrics (like debt, or availability on a global scale) these values can become even higher in real purchasing value.
Thanks for the detail.
I've started accumulating generic silver one-ounce coins and have another order on the way. The markup over spot seems reasonable to cover shipping, insurance and a profit.
I would be SO happy if it went to 1k/oz.
Just for clarity, in this scenario it would be less that silver was increasing in value and more that the dollar had become worthless paper.
Buy a good-condition Buick coupe made in the 1970s.