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Endeavour Silver Corp. Message Board

  • stevie_b_in_hawaii stevie_b_in_hawaii May 18, 2013 1:15 PM Flag

    Gold vs Silver

    Game Time.

    When the markets starts throwing the baby out with the bathwater, which in this
    case is it better to be in, Gold or Silver? No Difference?

    Does the Physical/Industrial demand for Silver have an advantage over Gold?

    Thoughts are appreciated. Been in this space for couple of years and lacking
    knowledge on declining market conditions with PMs and miners.
    Newscentral and Warrncamp, any thoughts? thanks

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • My vote is for silver:
      1) Silver remains an inelastic commodity due to industrial demand where silver requirement for most applications is a small quantity of the overall product cost
      2) Gold to Silver ratio remains very favorable for Silver
      3) If you are buying in to PMs as a hedge to fiat currency failure, silver provides easier/smaller denominations
      4) Silver products more affordable for the average Joe
      5) If you buy in to history tends to repeat or forecast the future; then silver has much further to go than gold as a function of PM peak values seen in the 80s.

      Bottom line, whether you go silver or gold, hold (own) the physical. GLTY!

      Sentiment: Buy

      • 1 Reply to portguyofva
      • Another point supporting Silver vs. Gold:
        6) If you buy in to the fact that we are facing global economic challenges with decreasing GDPs in the future; then the silver production industry will be impacted more than the gold production industry. Roughly 70% of current silver mining operations stem from a "non-Silver" base metal operation(copper, nickle, zinc, gold, etc.), versus only 20% of the gold miners being "non-Gold" base metal operations. The negative impacts of decreasing global GDPs will be greater on the 70% non-primary silver mining operations. In essence, much of the silver will remain in the ground until the price of silver reaches a level that makes the non-silver primary operations shift to "primary silver" mining operations.

        Sentiment: Buy

    • We all know about the mechanics of /or between gold and silver, from central banks to industrial and consumer desires. At times, and often not in perspective to supply and demand, the silver/gold ratio will show some deviation due to manipulation. So what I think is one of the main reasons as to why they have been in tandem is this:

      For every 100 ounces of gold and for every 100 ounces of silver traded on paper there is only one actual ounce of gold and one actual ounce of silver to back up these trades.

      I don't see an end game in metals. In the years to come silver will become rare.

    • If someone is lucky to pinpoint exact bottom then it’s better to be in silver, because silver market is smaller than gold and moves in more volatile way, i.e. moves stronger in both directions and silver rebound could be expected to be a bit stronger than gold rebound.

      If someone is not too lucky then it’s, probably, better to be in safer stocks, ones that will drop less in case timing was wrong. “Safer” label relates more to individual stock fundamentals rather than to silver/gold divider. Needless to say that in case of panic sell-offs stocks drop in chaotic way disallowing to see any difference.

      In my opinion, silver industrial demand could come to play in remote future only, i.e. silver investment could become better than gold after serious trials and calamities inflicted to both camps. Hopefully, this scenario will stay theoretical only.

 
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