Should I Buy Silver or Gold? Playing the Gold/Silver Ratio - Mike Maloney & Ronnie Stoeferle
Does Mike Maloney buy more gold or more silver? Which is he buying now? As he and Ronni Stoeferle of Incrementum discuss in this new video, the gold/silver ratio (gold price divided by the silver price) continues to hover near historic highs. This 50-year chart shows where the current ratio fits historically, as well as the gains silver experienced when the ratio fell. As Ronni points out, the gold/silver ratio is at its highest level since 1991 (at the time of their recording). This makes silver clearly a better buy than gold. And the metal that will see the biggest gains when the ratio reverses.
Mike shares his personal buying strategy: "The gold/silver ratio determines how I allocate my portfolio. And right now, silver is incredibly undervalued to gold, and gold is incredibly undervalued to everything else." Mike relays a story where he got 1.8 times more silver when he sold gold and bought silver, based on playing the ratio.
"A day is coming when the silver price spikes and pushes the GSR to 20. At that time, I will probably convert some silver to gold-and will get 4 times more gold!"
Michael Maloney is a precious metals investment expert and historian. He is the founder and owner of GoldSilver.com, a global leader in gold and silver sales/storage and one of the world's most highly regarded investment education companies. He is author of the highest selling precious metals investment book of all time, Rich Dad's Advisors: Guide to Investing In Gold and Silver