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78.52/1 To start off 2022.
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Gold-Silver Ratio 2022 Edition
- Thread starter BigJim#1-8
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79/1 Midday, midweek.
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Back over 80/1
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Tough sleddingBack over 80/1
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80.3/1 The first weekend of 22.
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78.75/1 Midweek.
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Hey Big Jim, help a newbie out on the GSR theory.
I guess my question would be, "Does the GSR reflect the amount of overvalue or undervalue of Silver, with regards to Gold?".
That is to say, is gold the anchor and silver the floating asset? What if gold is over or undervalued?
What's your interpretation of it?
From Investopedia:
"For hundreds of years prior to that time, the ratio, often set by governments for purposes of monetary stability, was fairly steady, ranging between 12:1 and 15:1. The Roman Empire officially set the ratio at 12:1 The U.S. government fixed the ratio at 15:1 with the Coinage Act of 1792"
I guess my question would be, "Does the GSR reflect the amount of overvalue or undervalue of Silver, with regards to Gold?".
That is to say, is gold the anchor and silver the floating asset? What if gold is over or undervalued?
What's your interpretation of it?
From Investopedia:
"For hundreds of years prior to that time, the ratio, often set by governments for purposes of monetary stability, was fairly steady, ranging between 12:1 and 15:1. The Roman Empire officially set the ratio at 12:1 The U.S. government fixed the ratio at 15:1 with the Coinage Act of 1792"
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Bman33
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Big Jim probably knows more about the topic than me but it's my understanding that gold is the end game here. Gold for silver trades are getting you ready for silver to gold trades. Right now if you are playing the GSR you should be buying silver and trading gold for silver because the GSR is high. It's hard for me to do because it is a move that could take several years to come to fruition.
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I'll just retain my position and see how things shake out and see if there's a chair left to sit in when the music stops
Bman33
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Speaking of which I have some dry powder and I am itching to go to my LCS and get Gold or Silver. With premiums on Silver Eagles and 90 Silver so damn high it's a hard decisions for me. Do I hold my dry powder or get gold or get silver or a little of both?
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Hey Jodster,
My GSR theory is to amass the most ounces, cost effectively, whether Au or Ag.
Over or under value is real tough now due to the high premiums as Bman said above.
Look at some of the posts on the 2021 Thread around post #260, posts 263 & 267 are the best , that shows the real, IMHO, ratios that one could/ should be trading at. Pretty tough at this time.
I'm just a simple guy stumbling along trying to put away the most ounces. In the end I hope to have a ratio of more Au than Ag.
One rule I follow is never trade Govt issued Au or Ag for Generic. (Unless the margin is too good to be true)
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79.2/1 For the weekend. Have a good one!
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76.8/1 With both Au & Ag up.
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75.25/1 Gained/Lost another Oz depending on how you look at it.
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I think in general a lower GSR points to a healthier metals market.75.25/1 Gained/Lost another Oz depending on how you look at it.
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75.5/1 for the weekend.
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Thanks Jim, have a great weekend!75.5/1 for the weekend.
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77.3/1 Midweek, almost midday.
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78.8/1 Both gettin' hammered.
79.3/1
79.3/1
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Looking like a buying op if you can find some low premium material.78.8/1 Both gettin' hammered.
79.3/1
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79.77/1 For the weekend. 80 was hit earlier today. Goin' the wrong way...
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Something I was just thinking about: Does the premiums of the two metals get put into the equation ?
While SPOT price for Ag has been manipulated down ( probably to give BoA some part of an exit strategy) the premiums of the various forms of Ag have gone up. Increasing the value of Ag.
Gold is not as radical in its premium staying fairly even across the board.
Something to consider.
While SPOT price for Ag has been manipulated down ( probably to give BoA some part of an exit strategy) the premiums of the various forms of Ag have gone up. Increasing the value of Ag.
Gold is not as radical in its premium staying fairly even across the board.
Something to consider.
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GB,
On the GSR site the ratio doesn't consider premiums, just paper price.
See post 11 above.
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Depends where one thinks the ratios will be in the future. Personally last Au for Ag trade I did was 80/1, that was SAE's for 1 Oz Gae's. If I could trade 59 SAE's for the Gae's I'd have to consider, I'd be 21 SAE's ahead.
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I think these numbers are a reflection of the reality of the physical market. The pure GSR looks at paper trading numbers. Those other ratios represent where the physical markets actually are at the moment. This hints strongly that the paper silver price is being dislocated down artificially.
I'm going to make my fist attempt to do a GSR swap at tomorrows LCS. I'll report back what I find out. I'm curious what my 4 bullion dealers I buy from will say...stay tuned.
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What is your strategy on the trade? What are you trading for, Au or Ag?
Good Luck.
I've got AU to try and trade into AG. I do sizable purchases from these 4 vendors and I'm hoping they will work with me. I have GAEs and Maples to offer. I am not picky about what kind of AG I get as I truly feel silver is silver which I hope affords me an advantage as my AU is gov issued. I'm going to attempt to get 75-80:1 depending on what they offer. I really like pre 64 stuff so I'm hoping to make something happen there as my bullion guys have a fair amount of that too. They also have a lot of generic bars in 1-5-10oz. We'll see...
My experience at LCS is that they buy your PM at their 'buy' price and sell you their PM at their 'sell' price.
Do not expect a good deal — they're innit for the money.
BF
Do not expect a good deal — they're innit for the money.
BF
Bman33
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This is what my LCS does. No consideration of the swap. Just does the math as if you sold the gold to him then bought silver from him.
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The spread is how your LCS is trying to survive. You walk in to his place. He is paying the bills and spends his day there trying to make a little scratch and put some food on the table. Innit for the money, just about like anybody else trying to make a living.
So I just got back from the LCS. There were a LOT of bullion dealers there. Generic bars and rounds 1 oz-Kilo we're going for $26/oz. I got lucky and found 1 10 oz APMEX bar for $250 so I snatched it up. Maples were $30 and SAEs were running $30. I got 100 face at 19x. That was for quarters and dimes. Halves were 20x...I passed on those. Not too bad given the market. I inquired with the 4 guys I regularly deal with regarding a ratio trade, but the best offer I received was 73:1...my GAEs for their generic. My floor was 75:1. Oh well, I tried. Maybe next weeks show.
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80.25/1 Sunday nite.
It was not my intention to depreciate what they do, Don, I was just pointing out that one should not expect to do a straight across exchange.
BF
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You are absolutely correct. They will buy from you at their buy price and sell to you at their sell price.
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80.4/1 Early Thursday AM.
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80.5/1 Friday AM. See where it ends up for the weekend???
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80.3/1 For GIM2 Telethon Weekend. Thanks for supporting this great place!!!
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78.6/1 Early Midweek AM.