When should one invest in Silver instead of Gold?

[ShropshireTom]

On 23/06/2023 at 08:11, GoldDiggerDave said:

1. Silver is not an investment FACT. 

2. Silver has never kept up with inflation  for any sustained period of time FACT

3. Silver is not a hedge against inflation FACT see 2. If it’s never kept up with inflation how’s it supposed to hedge something it doesn’t keep up with? 

4. cash in the bank since 1971 has out performed silver over the last 52 years FACT

5 cash in the bank today is smashing silver FACT

6 silver is not a good store of wealth FACT see 1,2,3,4,5

 

im not out to dance on anyone’s hopes and dreams but that’s what silver is a hope a dream that someday it will be worth more than you paid and it’s kept it’s store of wealth even out performing inflation…..it could but then we are describing a gamble not an investment. 

I don’t have a particularly strong view one way or the other on the points you raise (other than I don’t doubt the factual accuracy) but I would like to play to devils advocate on a couple of points:

1) The silver or gold price in FIAT currency is not a good indicator of anything. GBP and USD are printed on demand by central banks when they need it. This leads to its devaluation and is the larger part of inflation.

2) Because of the above, the gold to silver is, it could be logically argued, much more important that currency to PM relationship.

3) Platinum and silver are under valued currently because we have seen the first wave of ‘regular’ investors running out on FIAT currency and heading to the obvious PM.

I don’t particularly hold those opinions, but they do give me pause for thought. I favour sliver and play over gold after having made solid gold gains and cashed in because I could t believe it had major upside from £1000 an ounce. I was stratospherically incorrect in that thought.

And let’s not forget on the gold front, I remember when it was not easy to shift, wasn’t a loved asset and the best you could often hope for - even in the Jewellery quarter (which I don’t live far from and is a regular haunt) of Birmingham was was 10% to 15% under spot. Before the interweb, it was considered a pain in the ass to move in any real quantity. I could buy 9ct and 18ct at 40% under spot relatively easily for a long time. Then BOOM, it relatively quickly turned. Maybe the white PM’s will do the same?

At the same time gold was out of favour, platinum was a dream and in high demand. The quarter would gobble it up and fashion jewellery out of it. 
 

it is an interesting topic. Nothings on a bull run until it’s on a bull run. If you can call them, you will make a fortune…

Edited November 2, 2023 by ShropshireTom