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I think as gold moves down silver moves down more, so the G:S ratio get bigger. But equally as gold improves silver improves more, so the ration gets lower. I do not think that what that is going on at the moment (deflation scare) has changed this relationship that they seem to have.

If this is the case and silver is more volatile than gold then if one was going to trade a a few ounces on say Goldmoney [from time to time] it would make sense to trade silver [for dollars] instead of gold. Then at a later date trade silver to gold when the ratio was more favorable. No?

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Yes, but I try not to get overoptimistic.

 

1400/26 = 53.85

 

While 1400 might be possible, I'd say I think that 1200 is likely by year's end.

 

1200/50 = $24 for silver

 

1200/80 = $15

 

1200/100 = $12

 

I'm prepared to see the gold/silver ratio stay high. Given the onset of severe recession now, the reduced industrial demand for silver might keep the ratio high for quite some time. I'm not saying it probably will, but it seems quite possible.

 

I keep an open mind and, as I said, I try not to get too optimistic.

 

$1200 and $15 this year wouldn't be bad and higher, which is quite possible, I would regard as a bonus.

 

$1500 and $30 would be great but maybe that's for 2010 or 2011.

Yep, I liked Mish's take on it: "Don't expect a [sudden] event but rather a [long] process". Also, a continued period with deflationary pressures could set up a great opportunity to occasionally trade the volatilty where you could add a few ounces to your metal by your metal. Not that I would do this with more than a small portion of my holding.

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It depends how much you're going to sink in to silver. If you get to the point where you have to consider 5KG bars then I think you should lean towards GM, with a smallish stash in physical, say perhaps up to 20KG. The problem with GM of course, is this is considered the paper price and not necessarily what you could achieve for the same amount of physical in a private sale. Nevertheless, we haven't seen quite the same disconnect between physical and the paper price in silver as we have in gold, so I consider this (at least for the moment) less risky than dealing in allocated paper gold. For the moment I am spread between physical and GM for silver.

 

The other advantage of dealing in GM is to take advantage of a quick sale in a volatile silver market. If you have to send your silver off to a warehouse in Germany or sell it on E-Bay you won't be able to sell it at the spot rate you want. My advice is to plan your entry in to silver based around your exit strategy.

 

I haven't seen a 1KG coin on E-Bay yet, but you can guarantee it will generate some interest...

 

I'm going to be getting some silver soon, but even after reading through many of the topics on here, I'm still a bit unsure of whether to go for physical or the GM route. Latter is better from the price point of view, but I'd really like to have a bit of physical stashed as well (and the coins are so nice!) though the markups plus VAT are pretty steep. Perhaps a mixture of the two?

 

Got to get me a 1kg Kookaburra :D

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There will be day I will trek up to London, and slam down a 1KG bar on the counter, after queuing 4 hours after all the buyers have been served before me. I will shout "SELL", and all the 50+ person queue behind me will go WWWHAATTT!? and then they will look at me like I'm some sort of alien, or a punk thats shouted something blasphemous to a bunch of highly religious satanists.

 

That day will come.

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I'm going to be getting some silver soon, but even after reading through many of the topics on here, I'm still a bit unsure of whether to go for physical or the GM route. Latter is better from the price point of view, but I'd really like to have a bit of physical stashed as well (and the coins are so nice!) though the markups plus VAT are pretty steep. Perhaps a mixture of the two?

 

Got to get me a 1kg Kookaburra :D

Buying and selling silver coins and bars is hassle (VAT, postage, storage). So I keep some tens of ounces as coins in personal possession but my main holding at GoldMoney.

 

I'm also tempted to get a one kilo silver coin. It would make a nice paperweight.

 

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There will be day I will trek up to London, and slam down a 1KG bar on the counter, after queuing 4 hours after all the buyers have been served before me. I will shout "SELL", and all the 50+ person queue behind me will go WWWHAATTT!? and then they will look at me like I'm some sort of alien, or a punk thats shouted something blasphemous to a bunch of highly religious satanists.

 

That day will come.

 

 

Remember Trading Places?

 

From: http://www.youtube.com/watch?v=RAXdie_gifI

 

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There will be day I will trek up to London, and slam down a 1KG bar on the counter, after queuing 4 hours after all the buyers have been served before me. I will shout "SELL", and all the 50+ person queue behind me will go WWWHAATTT!? and then they will look at me like I'm some sort of alien, or a punk thats shouted something blasphemous to a bunch of highly religious satanists.

 

That day will come.

 

Stand outside the shop and do it but make sure that there is a big gap behind you to give you space move into when they all start pushing forward to be first to buy :lol:

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There will be day I will trek up to London, and slam down a 1KG bar on the counter, after queuing 4 hours after all the buyers have been served before me. I will shout "SELL", and all the 50+ person queue behind me will go WWWHAATTT!? and then they will look at me like I'm some sort of alien, or a punk thats shouted something blasphemous to a bunch of highly religious satanists.

 

That day will come.

:lol:

I imagine this day will also see the goats separated from the sheep: those that understood the nature of not only fiat money but all money and its function [a means to an end] from those that didn't.

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A young mother pushing a pram behind me in the queue will go "but didn't you see Jason Hommel's Mad for Money show last night, he says silver will go to £10,000/oz!?" I'll go, yeah yeah, give me that fiat currency, I'll take the risk in the face of fiat adversity! [bP. shares are like 50p each in todays money at that point in time and houses £50K each LOL].

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Thanks warpig and wren for your replies!

 

Buying and selling silver coins and bars is hassle (VAT, postage, storage). So I keep some tens of ounces as coins in personal possession but my main holding at GoldMoney.

 

I'm also tempted to get a one kilo silver coin. It would make a nice paperweight.

 

This was my thought about silver coins/bars, so think I'll get a bit of physical (but not a 1kg coin just yet ;) ) and get started with signing up for GM...

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Thanks warpig and wren for your replies!

 

 

 

This was my thought about silver coins/bars, so think I'll get a bit of physical (but not a 1kg coin just yet ;) ) and get started with signing up for GM...

Beware the storage and commissions at GM. For silver, you pay ~5% for a purchase, and storage is about 1% per year for silver. If you intend to hold (say) 1000 oz for a year, that's £7ish a month, plus the 5%.. Just worth a thought.

 

For me it's worth it, as I think Silver was way oversold, but it is a consideration. Of course, there's the 15% vat which you pay if you buy physical in your hands. Certain countries you might be able to get round that- if you have access- and I know you do... ;)

 

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Beware the storage and commissions at GM. For silver, you pay ~5% for a purchase, and storage is about 1% per year for silver. If you intend to hold (say) 1000 oz for a year, that's £7ish a month, plus the 5%.. Just worth a thought.

 

For me it's worth it, as I think Silver was way oversold, but it is a consideration. Of course, there's the 15% vat which you pay if you buy physical in your hands. Certain countries you might be able to get round that- if you have access- and I know you do... ;)

 

The GM purchase/storage costs are good points which I'd slightly overlooked - though 5% purchase is better than 15% VAT at least...

 

If you mean where I think you mean, then I may be asking you for recommendations for where to buy :lol:

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The GM purchase/storage costs are good points which I'd slightly overlooked - though 5% purchase is better than 15% VAT at least...

 

If you mean where I think you mean, then I may be asking you for recommendations for where to buy :lol:

I think it's a 4.25% fee for buying silver (less for big amounts) and 0.99% per annum for storage.

 

So sure, it isn't so cheap but if you have to pay 15% VAT, that's like some years' storage (and insurance) saved immediately. And the premiums on silver coins and bars are generally well over 4.25% anyway.

 

I find GM a convenient and reasonably cost-effective way to own sizable quantities of gold.

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another option for silver is anglofareast who charge 9.75% flat fee including 8 years storage.

 

you can make a monthly standing order, and the allocated holding is automatically switched to an entire good delivery bar when the account exceeds 1000 oz.

 

http://www.anglofareast.com/

 

i would be interested to hear what any legalistically-minded people out there think about anglofareast's ownership structure versus bullionvault and goldmoney

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More supply destruction...it they go bk, that is. Is bk likely?

http://money.cnn.com/news/newsfeeds/articl...ire/0465670.htm

Apex Silver Files for Reorganization Under Chapter 11 of the U.S. Bankruptcy Code

Marketwire

January 13, 2009: 12:26 PM ET

 

Apex Silver Mines Limited (AMEX: SIL) (the "Company") and its wholly-owned subsidiary, Apex Silver Mines Corporation ("ASMC"), filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southern District of New York ("Bankruptcy Court") on January 12, 2009.

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The problem I have with the Panda is that it looks cute. But gold as bullion is not cute, it's business. So, an Eagle or a Maple or the Queen on it is preferable in a way (to me). But I gave my wife a Panda pendant some time ago.

 

A coin without the queen on it?

 

It is something primal with me - guess I am old enough to remember the circulating coins with kings and Victoria.

 

This primal thing will be cogent to many, but the Queen in gold - you cannot beat it.

 

ps I like the new jigsaw coins they are fun.

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