Silver (and other precious metals)

[Mumski45]

Anyone else been tracking the price of silver and related investments over the last few weeks. @XVGN you mentioned it on another thread but I didn't want to derail that one.

Other PM's such as Gold, Platinum etc also doing well but I'm trying to figure out where will it stop - I know that's impossible but I'm trying to work out a sensible exist strategy.

My chosen allocation to PM's (precious metals) is 25% of my portfolio split - 5% Gold ETF, 5% Silver ETF, 5% Gold Miners ETF, 5% Junior Gold Miners ETF and 5% Silver miners ETF.

I don't worry whether things will go up or down as I regularly rebalance via the addition of new funds or at the end of the year. Essentially this ensures that I buy low and sell high.

I also rest easy as the long term history of this portfolio demonstrate low volatility and returns superior to inflation.

In short, I'm not going to predict up or down or forecast the likely highs. I'll just ride the wave!

My intended allocation is very similar to yours although it has become unbalanced and is currently at over 28% with the value of Silver and Silver Miners being overweight partly due to a higher allocation and partly due to recent performance. I am thinking that one strategy would be to switch to Gold when the ratio of Gold to Silver is nearer 30:1.

I only have a short track record so my overall portfolio has not been tested over the long term or over a significant downturn (other than last April).

28% is not too much out of balance. Some books talk about rebalancing at around +/-10% off. I recommend reading Harry Brownes - Permanent Portfolio.

This site backtests every portfolio you can imagine for lots of different starting years. Ours comes out well. Even the Pension Craft guy uses these tools.

portfoliocharts.com

Thanks I’ll have a look at that. I do like the pension craft guy but not signed up to his website yet.