Au-Ag Ratio

BigJim

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GSR about 57/1.
Time to consider trading Gold for Silver???:popcorn:


GOD BLESS & BRING OUR TROOPS HOME!!!
 

Jetstream

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So ... here's a question for times like this...

If a person has been stacking silver and isn't into gold much yet would you advise:
1) buy more silver now and trade it later
2) buy gold to balance out your holdings
3) keep your cash for a bit longer

Curious to see how the 'bugs' on the site would deal with a real-time scenario here.
 

bushi

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I am not a seasoned bug, nor investor, but if/when I have some more cash to spend on PMs, I currently do 50/25/25% - cash/gold/silver, appropriately. Cash will go into land purchase shortly. MAybe I would hold on to cash for few months to come, since it seems that PMs will continue to go down/nowhere for a while.

Reasoning:

Gold has great upside potential, if/when it gets recognized broadly as money again (as it seems to be happening) and/or when used more broadly for international trade/backing some currencies (as it seems to be happening), and/or when paper currencies get destroyed by all the QEs/LTROs/currency wars of the world (as it seems to be happening :)). That would go up ballistic, if any of the above gets broadly recognized by sheeple. Silver would rise in this scenario too, most probably, but Possibly not as sharp as gold - which would be the main actor, thus getting the biggest returns.

Silver has great upside potential, if our economy somehow miraculously DOESN'T tank - as an industrial metal with unique applications, quite big demand (& rising, currently) - required for many products, that have relatively short life span (electronics, for example), and are economically irrecoverable (silver gets used once -> ends on the landfill). Also, if we are to get out of oil (and we will have too, if global economy is to grow, any mid to long term), we will need to manufacture A LOT of new solar panels. Guess what's required to manufacture them :). And that silver gets used, and stays there for decades, on DCFusor's roof, for example ;)

So gold & silver kind of hedge each other on the macro & long term scale, IMHO, depending on the long-term macro outlooks (ie, when economy tanks, gold most probably will be re-instantiated at some stage as world reserve/international trade currency, if economy recovers - the industrial demand for silver will most probably surge).

Cash - in the climate like that, it is always prudent to have some cash at hand, because you can make AMAZING bargains, when miss-allocated capital get's destroyed.

my 2c

regards,
 
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pmbug

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If a person has been stacking silver and isn't into gold much yet would you advise:
1) buy more silver now and trade it later
2) buy gold to balance out your holdings
3) keep your cash for a bit longer
1 - I don't play the GSR trading one for another
2 - If I already had mroe silver than I could easily move around or keep track of, yes. If not, I buy whichever seems the better buy (GSR leading indicator)
3 - I'm holding cash right now pending some clear indication that the bottom is in.
 

cshawcuk

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Interesting...does anyone know a coin shop or trader who swaps silver 1oz coins for gold 1oz coins at whatever ratio? Rather than having to sell a number of silver coins then pay capital gains tax(depends what country your in!?)before buying gold..

Is this an interesting business idea? I can see the slogan TRADE UP TO GOLD!
 

benjamen

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Interesting...does anyone know a coin shop or trader who swaps silver 1oz coins for gold 1oz coins at whatever ratio? Rather than having to sell a number of silver coins then pay capital gains tax(depends what country your in!?)before buying gold..

Is this an interesting business idea? I can see the slogan TRADE UP TO GOLD!
Assuming no tax or paperwork requirements, most coin shops will do this trade. However, since they are in the business of making a profit, usually they will give you a tad less than the current ratio. If the GSR is 55, they may only give you 53 ounces of silver for one ounce of gold.
 

ancona

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My LCS is just such a player. He will do trades and you will pay him a straight up facilitation fee. He will, for an additional fee of course, shoopt the coins with XRF if there is any question about authenticity or purity as well. He's a straight shooter and offers pricing up-front. It is a relatively cheap way to avoid Uncle Sugar.
 

cshawcuk

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Assuming no tax or paperwork requirements, most coin shops will do this trade. However, since they are in the business of making a profit, usually they will give you a tad less than the current ratio. If the GSR is 55, they may only give you 53 ounces of silver for one ounce of gold.
Or is it the other way around if you want to trade your silver for gold and it's 53\1 they would make you pay 55 or whatever their cut is?
 

benjamen

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Or is it the other way around if you want to trade your silver for gold and it's 53\1 they would make you pay 55 or whatever their cut is?
If you want to trade in silver to recieve gold, and the ratio is 55, you would pay them perhaps 57 ounces of silver for that gold.

I have seen this even for gold for gold conversions. A friend of mine wanted to trade in a 2010 American Gold Eagle for a 2010 Canadian Gold Maple Leaf. He ended up having to throw in an American Silver Eagle to get the Maple Leaf.
 

BigJim

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If you want to trade in silver to recieve gold, and the ratio is 55, you would pay them perhaps 57 ounces of silver for that gold.

I have seen this even for gold for gold conversions. A friend of mine wanted to trade in a 2010 American Gold Eagle for a 2010 Canadian Gold Maple Leaf. He ended up having to throw in an American Silver Eagle to get the Maple Leaf.
The LCS or any other dealer is going to charge a premium/fee whether selling or trading.
If you can trade in a private transaction you probably will come out better.
Good to see some green on the charts today...


GOD BLESS OUR TROOPS!!!
 

DSAbug

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i really don't like playing the "swap" game with my coins.

If you are going to play those games, play them with paper, not the physical metal.
 

cshawcuk

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i really don't like playing the "swap" game with my coins.

If you are going to play those games, play them with paper, not the physical metal.
But if your buying coins as a savings scheme...and you start out with silver..then maybe you want to trade silver for gold if you can save that way-what's wrong with that?for me buying coins is my own pension scheme.
 

BigJim

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But if your buying coins as a savings scheme...and you start out with silver..then maybe you want to trade silver for gold if you can save that way-what's wrong with that?for me buying coins is my own pension scheme.
There's nothing wrong with trading,your coins,do what you want to do..
I'm sure the people I traded with when GSR was 31/1 would like to have their Au back.
I'm thinking of trading some Au back for Ag.


GOD BLESS OUR TROOPS!!!
 

Jetstream

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For guys (and gals) who are into silver, I would consider, in fact recommend trading 100 oz bars for ML's or ASE's. Even if there is a small fee for doing so.

A lot of silver bugs want to see silver at $100.00/oz or even more. Think about what that means trying to sell a bar for cash if you need to do so. It will put you into the 'reportable' category to say the least, if not make it almost impossible at some coin shops.
 
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