Does anyone "trade up"?

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J

Jay

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I only have silver (I think my wife has some gold). Here's what my LCGuy said (my wife thought it was a good idea until she saw his "terms", I personally would want a better GSR.:

snip:
Torin : Yeah, October-December is (traditionally) the leanest period of the year in this industry. January-April tend to make up for it. One of my most successful silver buyers plunks down $10-$80 (whatever he can afford after paying bills) every 2 weeks on silver. He did this for a few months and came in to trade a mound of silver for gold with NO additional cash out of pocket - and we BOTH made a profit on the deal. Win/Win is the new way to do business.

Bing : OK I mentioned this to Bing (this is Jay) and she wants to trade some silver for gold. (I've been stacking fifteen years, have a LOT of silver, no gold). How do you figure it, spot/spot?

Torin : In a situation like this, I figure the Gold Spot Ask/Silver Spot Bid ratio. At this moment it's 1:62.85. I take a 5% profit for myself, lowering the ratio to a current rate of 1:65.99. So if you wanted an ounce of gold from my case, I would ask for 65.99 ounces of silver.
 
I have seen and/or done trades of silver for gold, gold for silver, both for firearms, one type of gold for another, ect. They are not that uncommon.

You can "profit" off the gold to silver ratio as it varies from 30:1 to 100:1, but it really depends on what is your goal? If you want to diversify, you can simply start picking up gold instead of silver for the next year or two. If you want to trade silver for gold, a dealer will want to make a profit. A better method may be to find a local person that has gold and wants silver.

$.02
 
I decided I'm just going to buy some gold. My wife wasn't real happy with the dealers "cut". Doesn't seem like much to me, though. I don't even know how he makes a living. I can always get the gold from him. He seems cheaper than most.
 
I thought this thread was gonna be about that show where you start with a tie, and by the end of the week, you have a Ferrari.
 
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