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Gold / Silver ratio revisited

the_shootist

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Whathey're talking about is just a way to save/stack more than you otherwise would have been able to.
....and there's no speculation involved.

Let's suppose you bought 40 oz of silver and you don't do do anything with it, just hold.
Many years later you still got your 40 ozs.
.....but let's suppose you sold it and bought an ounce of gold when the ratio dropped below 40:1
Now you got an ounce of gold. Hey! Way to go man!
....and you hold it until the ratio hit 90:1 and sell it for 80 ozs of silver. (There may be premiums involved)
Now you got 80 ozs of silver without having had to actually spend any more money than you originally spent on the 40 ozs of silver.

Then rinse wash and repeat. Except next time you get two ounces of gold that are then used later on to acquire 160 ozs of silver that is later used to get 4 ozs of gold witch is used to to get 320 ozs of silver, and on and upwards it goes.
....and all for the original cost of the 40 ozs silver.

If all you did was buy and hold, to have the same amount, you incur the costs of 320 ozs of silver over the same period of time.


If the ratio doesn't move to those extremes, you still got the pm's you currently got, so nothing lost. Just sit tight and wait for it to tell you what to do.
....and there's no speculation as the ratio is what it is at any given time. Ie: you are not trading in anticipation of it moving in a particular direction. Because when the trade is made, it's only because of what the ratio currently is.
I get it but the ratio hasn't moved more then 10/12 points since this topic has caught my attention. I'm too laxy to swap at those levels, especially now when the markets are so volatile. It's not worth the time and effort to me.

Using your examples would be a different story.
 

BigJim#1-8

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Whathey're talking about is just a way to save/stack more than you otherwise would have been able to.
....and there's no speculation involved.

Let's suppose you bought 40 oz of silver and you don't do do anything with it, just hold.
Many years later you still got your 40 ozs.
.....but let's suppose you sold it and bought an ounce of gold when the ratio dropped below 40:1
Now you got an ounce of gold. Hey! Way to go man!
....and you hold it until the ratio hit 90:1 and sell it for 80 ozs of silver. (There may be premiums involved)
Now you got 80 ozs of silver without having had to actually spend any more money than you originally spent on the 40 ozs of silver.

Then rinse wash and repeat. Except next time you get two ounces of gold that are then used later on to acquire 160 ozs of silver that is later used to get 4 ozs of gold witch is used to to get 320 ozs of silver, and on and upwards it goes.
....and all for the original cost of the 40 ozs silver.

If all you did was buy and hold, to have the same amount, you incur the costs of 320 ozs of silver over the same period of time.


If the ratio doesn't move to those extremes, you still got the pm's you currently got, so nothing lost. Just sit tight and wait for it to tell you what to do.
....and there's no speculation as the ratio is what it is at any given time. Ie: you are not trading in anticipation of it moving in a particular direction. Because when the trade is made, it's only because of what the ratio currently is.
Great post Joe! Thanks!
 

savvydon

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For me I am trading a bit, but mostly just accumulating more Ag than Au these days. It is bulky and a pain, but if and when we get the big swing and the ratio drops I hope to convert over.

I have a bit of Plat that I have accumulated as well. If we ever see parity again with plat and Au I will trade that as well.
 

BigJim#1-8

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85.05/1- Back up midweek.
 

BigJim#1-8

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Ratio headin' North, 85.15/1 with Au & Ag spot headin' South.
 

Buck

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Just curious....

I know a lot more people here "appreciate" gold much more than they do silver.
Throughout different threads, I've seen several people proudly post that they traded silver for gold when the ration was decent.
But, is anybody actually trading gold for silver right now? playing the ration trade? with the anticipation of trading back when the ration changes once again?

Current 83.6 to 1


View attachment 145257
Yes

bulky or not, silver is still what I prefer
but
Gold is for Kings, i'll get mine back, someday

i expect i'll have a pot of it, someday
 

BigJim#1-8

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Strawboss

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1573228474559.png
 

Strawboss

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savvydon

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It would have to close above 89.50 before it would be a concern.
I'd like to see the big boys try. They have had the pedal to the metal all week long and we haven't made it to 87 yet.
 

GOLDBRIX

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I'd like to see the big boys try. They have had the pedal to the metal all week long and we haven't made it to 87 yet.
But SPOT dropped about $80.00 T.oz
Silver dropped $1.30+/-
All in the same time frame.
 

Strawboss

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I'd like to see the big boys try. They have had the pedal to the metal all week long and we haven't made it to 87 yet.
They are trying to get the large specs to capitulate so they can close out some of their shorts which have recently been at record high levels. And we wont really get a good look until next weeks COT (or even the week after) to see if they have been successful or not...as the COT due this afternoon only shows activity up until this past Tuesday...

If they cant get the large specs to vomit - they will have to close a significant number of their shorts...

Unless they plan on adding an additional few hundred thousand shorts to their already huge pile...
 

BigJim#1-8

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BigJim#1-8

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86.45/1 this AM.
86.9/1 & rising.
 
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BigJim#1-8

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87+/-/1 mid day.
 

BigJim#1-8

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86.65/1 for the weekend.
 

BigJim#1-8

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86.25/1 midweek wed AM.
 

BigJim#1-8

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86.68/1 this Monday afternoon.
 

savvydon

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Someone stepping on sister silver's throat again today. Silver off, while gold and the miners so far fairly indifferent. Has the GSR back up over 87.
 

BigJim#1-8

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87.45/1 midday.
 

BigJim#1-8

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88.28/1 Midday, we'll se where it closes tonight.
 

BigJim#1-8

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87.17/1 this AM, Ag @$17.00 & Au up $8.00.
 

BigJim#1-8

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87.21/1 for the weekend. Have a good one!
 

BigJim#1-8

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87.01/1 midday, mid week.
 

BigJim#1-8

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86.03/1 to close the week. Hope everyone has their Christmas shopping done.