Silver vs. Gold Allocation - My Take and Your Thoughts?
- •I'm no stranger to calculated risks, but this is about preservation, not chasing the next jackpot.
- •Lately, though, I've been kicking around the idea of diversifying a bit more into silver.
- •The thought is that silver could have more upside potential in a strong bull run, especially with industrial demand picking up.
Alright, so I’ve been holding a pretty decent chuck of gold in my Gold IRA for a while now – about $150k worth of various coins, mostly Eagles and Maple Leafs. I started really getting into this probably about 7 or 8 years ago when I saw some of the economic winds shifting, and being in the casino industry out here in Vegas, I’ve seen enough ups and downs to know that having some tangible assets is just smart. I'm no stranger to calculated risks, but this is about preservation, not chasing the next jackpot.
Lately, though, I've been kicking around the idea of diversifying a bit more into silver. My current allocation is almost 90% gold, maybe 10% silver, and that silver is really just a few bags of junk silver and some ASEs I picked up on a whim. The thought is that silver could have more upside potential in a strong bull run, especially with industrial demand picking up. Plus, the gold-to-silver ratio is still pretty high, which makes me think silver might be undervalued right now. What are your thoughts on that? Am I overthinking it, or is there a genuine case to be made for a more significant silver allocation?
I’m not looking to dump my gold by any stretch of the imagination – that’s my core hedge. But I'm wondering if scaling back on some future gold purchases and instead directing a portion of those funds into silver would be a wiser move. Maybe aim for a 70/30 or even 60/40 gold to silver ratio in the new money I'm putting in, rather than trying to rebalance my existing gold holdings. What kind of ratios do you all maintain in your precious metals portfolios, and what drives those decisions? I’m particularly interested in hearing from folks who’ve been in the game for a while and have seen a few cycles.