Thinking about rebalancing my gold/silver - what's
- •Been thinking a lot lately about my precious metals allocation, specifically the gold to silver ratio.
- •My reasoning has always been gold for wealth preservation, pure and simple.
- •It’s held its value through thick and thin, and it’s a tangible asset I can hold in my hand, which means a lot to an old-school guy like me.
Been thinking a lot lately about my precious metals allocation, specifically the gold to silver ratio. I’ve been stacking gold for over 20 years now, pretty much since before most folks on this forum were probably even thinking about investments beyond their 401k. Started after I saw some friends from the auto industry get hit hard by market downturns and thought, "Nope, not me." Now that I’m retired from the plant here in Detroit, I’m pretty heavy on gold, probably 90/10 gold to silver ratio in terms of value, with my total PMs weighing in around $750k.
My reasoning has always been gold for wealth preservation, pure and simple. It’s held its value through thick and thin, and it’s a tangible asset I can hold in my hand, which means a lot to an old-school guy like me. Silver has always felt more speculative, more volatile, and while I’ve definitely made a few bucks on it over the years, it’s mostly been a smaller play for me. I’ve got some Eagles and Maples, nothing too crazy.
But with all the talk about industrial demand for silver, and some of the supply crunch predictions I'm hearing, I'm wondering if I should re-evaluate. I know a lot of you younger guys are really bullish on silver for its potential growth. Part of me thinks sticking with what’s worked for two decades is the smart move, especially with my portfolio being for retirement income now. But another part is thinking, "Am I leaving significant gains on the table by being too conservative?"
So, for those of you with significant PM holdings, especially if you’ve been in the game for a while, what’s your current gold/silver allocation? Have any of you significantly shifted your ratios recently? What’s driving your decisions? Always good to hear differing perspectives from real investors.