Want To Play The Gold/ Silver Ratio
I've been itching for most of the year to trade some silver and for gold. While looking at what my target should be, I try to factor in where I think we're going to go, the historical averages, but my end goal is. I originally picked a ratio of 60 oz of silver for an ounce of gold. For a while it look like I was marching right towards my goal, but now I'm not so sure.
Either way in preparation of this potential trade I decided to root around my storage dig up the backyard and go scuba diving to my sunken boat to find some silver to trade. These 10 oz bars were bought with the sole purpose of playing the gold silver ratio, because I don't really care about them they're big they're chunky they're heavy and to be honest most of them are ugly. really they're just silver to me. These are not like the artistic bars and rounds that I have that I won't trade off even when the premium goes sky high.
It looks like silver is dropping, gold is rising and the ratio is moving back towards 70 and potentially in my higher, I'm not sure if I've missed my opportunity or if I should just pull the trigger now.
Taking a look at the church below clearly this is still one of the better ratios we've had for a long time, that's not to say that it's the right time to make this trade.
I'm wondering are you more experience to silver gold stackers who have done this with real physical silver and gold in the past what type of premiums do I need to add on top of this ratio. I assume that most of the local coin shops who would actually trade physical silver for physical gold are going to charge me a premium of gold and not give me the full value of silver. All I personally feel like this is a little bit crazy giving you premiums they get right now for silver, and the physical silver shortage that most coin shops are climbing but still feel like my ratio is going to creep up closer to the 75 and above range and I'm not sure I feel like paying a 5 oz premium or more just to trade. It might move me out of my trading range and I'd rather just hold the silver.
How many ounces or what percentage is in a reasonable markup above the straight gold silver ratio? Or do I just hold the silver and wait till my 60:1 and end up paying that 63:65 to one that it will take.
Either way I'm not sure what I'll end up doing, I hope it moves back door down towards 60 which would mean silver is taking some big increases again. Either way here's another glamor shot of 60 oz real world physical metal. It is kind of nice to hold these in your hand and feel how heavy they are, it gets you back to honest money that has real physical weight to it there's just something about that weight that's hard to beat.
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I'm wondering if my 42:1 ratio is too optimistic?
Oh Well, time to put my 10 oz bars back propping up the corner of my clothes washer.
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I would love 42:1 and if it get there, I will trade some ugly 1oz rounds I got to do it again. But for now, I am hoping for 60:1 - but for some reason, I have a feeling we both might be waiting for a while.
Buy BTC
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I bought BTC today - and then immediately bought ARRR chasing my bag goals before the price runs away on me anymore, 700% this week is getting nuts. I had cash left to circle back to buy BTC - but now that is up 3-4% from this morning. I swear I have the worst timing. BTC is going bonkers and I think it is just getting started.
When I last asked about "swapping", the LCS said that they did not do a straight swap rather they would buy the silver and with the proceeds I could buy whatever I wanted.
The problem is that the "sale", at least the last time I checked, would have triggered the dreaded capital gains tax.
So that might be something to consider in determining your move.
Yes - when I called a while back it sounded close to the same, We sell gold at X, and we buy silver at X... so the double premium on both sides really hurts. I need to find someone who will give a better deal, or just to the online guys I guess.
Was the the capital gains just for 1oz? I have hard rumors of them really starting to tighten up on how much you can buy without paper work. The Govt hates cash, precious metals and crypto, hard to impossible to track or enforce.
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I was looking to swap 100 ounces that I had picked up in 2004. And it just seemed like a big old deal. I tried to convince the owner that if we just swapped it would not be a "sale" but he said "NO DICE". It makes sense because he has to show his "cost basis" when he sells and a swap has "no recorded" cost basis.
After that I decided just to keep stacking until I needed the cash or the price rose so much that I could no longer afford the stack.
I do seem to recall that when silver hit $50 there were a ton of articles about all the information needed for sales of precious metals, silver but gold seemed to be more of the target.
I would hold till 50-1 that’s my plan. And I will gladly swap a ten ounce bar with you for that Engelhard bar. Big dealers will do the swap inquire and set it up prehand with them.
I only got small dealers around me, it's bot a pro and a con I guess. I would love 50:1 but that seems so impossible at the moment,
We can trade if you want, I bought the E bar a while ago, other than being Engelhard the serial number and year don't really add a premium.
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You can set up an account with Apmex, Provident or pretty much all the big dealers to sell to them. I know those two will do the ratio conversion. That’s why I set it up. If you need help let me know. DM me in discord if you have questions.
Hell yeah I’ll trade you. Engelhard wax in New Jersey about 15 minutes away from me. That’s why I like having the bars. Serial number doesn’t matter to me I just like their bars for my own nostalgia purposes.
Send me you contact info on discord and we’ll make the swap.👍