Trading my silver for gold?

[FiveStacks]

So i've been contemplating a good chunk of my stack for some gold but i'm not to sure if nows the right time or if i should wait for the ratio to drop? If so what's an ideal ratio to make this exchange?

Also what websites are you guys using to track the ratio properly?

Many thanks.

 

FiveStacks.

[85swat85]

I am using this graph: https://www.bullionbypost.eu/price-ratio/gold/silver/alltime/

1oz gold price/1oz silver price = ratio

However, it is tricky. When you buy 1oz silver bullion, then you pay higher premium so for more real ratio I would increase silver price by 15% at least.

[Darr3nG]

2 hours ago, 85swat85 said:

When you buy 1oz silver bullion, then you pay higher premium

^exactly this. I've traded a lot of silver for gold and rarely (if ever) consider the reported GSR - I tend to check out the prevailing sale prices from the forum Buy & Sell and set my offer accordingly.

[HighlandTiger]

18 hours ago, FiveStacks said:

So i've been contemplating a good chunk of my stack for some gold but i'm not to sure if nows the right time or if i should wait for the ratio to drop? If so what's an ideal ratio to make this exchange?

Also what websites are you guys using to track the ratio properly?

Many thanks.

 

FiveStacks. 

I'll be doing something similar but I won't be swapping any silver for gold until the GSR drops to below 65 at least. 

[Woodsy]

On 05/10/2020 at 20:17, FiveStacks said:

So i've been contemplating a good chunk of my stack for some gold but i'm not to sure if nows the right time or if i should wait for the ratio to drop? If so what's an ideal ratio to make this exchange?

Also what websites are you guys using to track the ratio properly?

Many thanks.

 

FiveStacks.

Historically the average gold to silver ratio was around 47:1 in the 20th Century. If we are still in a genuine Bull market, I think anything below 50:1 would be a good bet 👍

[MrTT]

1780 - 1781 the silver vs gold ratio was 14.75  🤠

The gold silver ratio represents the number of silver ounces it takes to buy a single ounce of gold. Historically speaking, the gold silver ratio has rested somewhere between 15 and 10 to 1, reflecting the average supply of each metal. There were times throughout the history of money where the ratio was even lower — China once had a 4 to 1 ratio and the ancient Egyptians even had a 1 to 1 ratio at one point.

[Realwealthuprising]

If you want some gold id say go for it. Its always good to have both because things can go differently to the way they did in the past.

If gold was used to back a future currency for example it could be massively revalued above silver at the stroke of a pen or if the pension funds and hedge funds all piled into gold which is more likely then silver (given silver can be seen as too risky for mainstream funds due to its high beta).

To be clear I am a huge silver bull btw! I just think even with the PM’s some diversification of metal is worthwhile, particularly now. Things are going to get very ugly so who knows where it will take the money mentals. 

 

[MrTT]

1 hour ago, Realwealthuprising said:

If you want some gold id say go for it. Its always good to have both because things can go differently to the way they did in the past.

If gold was used to back a future currency for example it could be massively revalued above silver at the stroke of a pen or if the pension funds and hedge funds all piled into gold which is more likely then silver (given silver can be seen as too risky for mainstream funds due to its high beta).

To be clear I am a huge silver bull btw! I just think even with the PM’s some diversification of metal is worthwhile, particularly now. Things are going to get very ugly so who knows where it will take the money mentals. 

 

Yes, you need both silver & gold.

Im in 60 % silver, 40 % gold.

[Abyss]

On 05/10/2020 at 20:17, FiveStacks said:

Also what websites are you guys using to track the ratio properly?

I use Trading View (https://in.tradingview.com) free to register and use and the symbol after screenshot below

I don't use the Gold to Silver ratio make any decisions though.

On 05/10/2020 at 20:17, FiveStacks said:

So i've been contemplating a good chunk of my stack for some gold but i'm not to sure if nows the right time or if i should wait for the ratio to drop? If so what's an ideal ratio to make this exchange?

I have done a similar thing sold significant amount of my Silver stack (90%) used the funds to complete my Gold stack. In the current climate I did not want to allocate more funds to PMs at higher prices but for me the decision based on not wanting have incomplete sets in both Gold and Silver so decided to focus on my Gold stack/sets. Before selling Silver about 40% Gold 60%. Right now 95% Gold and 5% Silver. As for timing the market your guess is as good as anyone's else's.

[Robda1986]

I'll be swapping over to gold when I can swap a 10oz bar of silver for a full sov so I'm looking around the 44:1 till then I'll just sit tight

[Realwealthuprising]

2 hours ago, MrTT said:

Yes, you need both silver & gold.

Im in 60 % silver, 40 % gold.

Im 80% gold 20% silver...a key factor for me is transporability. I had to travel 1000’s of miles with pm’s this year....even a modest amount of silver was a problem.

My worst nightmare actually occurred also as the car engine blew in the middle of Europe en route with all our belongings...and metal. The gold easily fit into a handbag, the silver not so much 😂 

It arrived safely but dont let anyone ever tell you in a crisis silver is as good as gold! 

[HighlandTiger]

10 hours ago, Realwealthuprising said:

Im 80% gold 20% silver...a key factor for me is transporability.

That's why I like vaulted silver and gold. Fits easily into a simple smart phone    

I know people will claim if you don't hold it, you don't own it. But thinking about it, if it comes to a stage where you cant access your assets online, then the world will be in such a state, that having PM's won't help, and may actually put a target on your back. 

There is the theory that in a doomsday scenario you can use gold and silver to barter, but after seeing the BLM riots and the looting, I don't think society will go down the peaceful route of bartering with a smile, it'll be a survival of the fittest.

[Realwealthuprising]

5 hours ago, HighlandTiger said:

That's why I like vaulted silver and gold. Fits easily into a simple smart phone    

I know people will claim if you don't hold it, you don't own it. But thinking about it, if it comes to a stage where you cant access your assets online, then the world will be in such a state, that having PM's won't help, and may actually put a target on your back. 

There is the theory that in a doomsday scenario you can use gold and silver to barter, but after seeing the BLM riots and the looting, I don't think society will go down the peaceful route of bartering with a smile, it'll be a survival of the fittest.

I agree in a riot its not of great use. Its not just for barter though, its also about having wealth outside the system that cannot be tracked or easily accessed by an authoritarian government. 

Looking at were we are likely headed, if they implement digital currencies and do away with cash its going to be very difficult to do or own anything without it been tracked and scrutinised.

It will be a world were every single action you take financially is digital and can be scrutinised or objected too from on high. As they try and inflate away the debt this ensures they can pickpocket anyone at anytime through new laws or taxes. Of course they could even confiscate or withhold access to something or everything all together at the press of a button.

 

[HighlandTiger]

1 hour ago, Realwealthuprising said:

I agree in a riot its not of great use. Its not just for barter though, its also about having wealth outside the system that cannot be tracked or easily accessed by an authoritarian government. 

Looking at were we are likely headed, if they implement digital currencies and do away with cash its going to be very difficult to do or own anything without it been tracked and scrutinised.

It will be a world were every single action you take financially is digital and can be scrutinised or objected too from on high. As they try and inflate away the debt this ensures they can pickpocket anyone at anytime through new laws or taxes. Of course they could even confiscate or withhold access to something or everything all together at the press of a button.

 

But if they do away with cash how are you going to sell your PM's. You will have to use a digital system of some sort. 

[Realwealthuprising]

4 hours ago, HighlandTiger said:

But if they do away with cash how are you going to sell your PM's. You will have to use a digital system of some sort. 

It depends because we can never know how it all plays out. Best case scenario gold goes into a bubble and you sell up and buy something else like land or property. So long as golds legal and your acting legally and you have free reign to sell and buy it would be irrelevant what the currency in between is. 

Id always keep something non digital thats good for money though personally. You never know when it might be useful.

[xmerchant]

Why do people buy gold though?

Isn't silver predicted to increase in value alot due to industrial demand and gold will increase slightly?

Or do they buy it due for financial stability as gold is more recognised as 'wealthy'

[HighlandTiger]

7 hours ago, xmerchant said:

Why do people buy gold though?

Isn't silver predicted to increase in value alot due to industrial demand and gold will increase slightly?

Or do they buy it due for financial stability as gold is more recognised as 'wealthy'

gold is easy to store, and easy to sell.

 

£100,000 of gold weighs just over a couple of kilos and can be transported,around in a sports bag. £100,000 of silver weighs nearly 170 kilos, and would need a couple of strong guys just to get it into the back of a truck.

It's not easy to sell large amounts of silver quickly, it does take some planning. Whereas when gold peaks it will often do so and sit at a high price for weeks,giving you time to sell at a maximum profit, silver could peak and drop like a stone within days, giving you a tiny window of opportunity to sell at maximum profit.

[Realwealthuprising]

1 hour ago, HighlandTiger said:

gold is easy to store, and easy to sell.

 

£100,000 of gold weighs just over a couple of kilos and can be transported,around in a sports bag. £100,000 of silver weighs nearly 170 kilos, and would need a couple of strong guys just to get it into the back of a truck.

It's not easy to sell large amounts of silver quickly, it does take some planning. Whereas when gold peaks it will often do so and sit at a high price for weeks,giving you time to sell at a maximum profit, silver could peak and drop like a stone within days, giving you a tiny window of opportunity to sell at maximum profit.

Great answer. ^

@xmerchant Gold is much more stable for investing in over the long term also. Its basically like a currency in terms of its behaviour. It fluctuates relative to other currencies (pound, dollars, euros etc) over shorter periods of time but over longer periods it will rise nominally because these other currencies are constantly being devalued due to the growth in their supply (money printing).

Gold simply cannot be found and extracted from the ground at a rate anywhere near comparable to the expansion of paper money. Because its rate of expansion is far far slower and as such it becomes much stronger as a currency like asset. As such it is mainly used as a stable store of wealth against debased currencies as opposed to a speculation.

Silver on the other hand is best viewed as a commodity because for the most part industry is were most of the demand comes from. As a commodity its much more volatile which makes it better for speculation. It also has less long term stability however and can drop as quickly as it rises.

[xmerchant]

On 15/10/2020 at 08:13, HighlandTiger said:

gold is easy to store, and easy to sell.

 

£100,000 of gold weighs just over a couple of kilos and can be transported,around in a sports bag. £100,000 of silver weighs nearly 170 kilos, and would need a couple of strong guys just to get it into the back of a truck.

It's not easy to sell large amounts of silver quickly, it does take some planning. Whereas when gold peaks it will often do so and sit at a high price for weeks,giving you time to sell at a maximum profit, silver could peak and drop like a stone within days, giving you a tiny window of opportunity to sell at maximum profit.

That is true indeed and I agree with the gold being more stabler than silver but why?

Gold will stay like a currency and silver half currency half industrial is my guess. (with the risk of it losing its industrial value)

A problem of offloading silver wouldn't really be a problem unless you stack tonnes of it (I don't), a few trips to the dealer is definitely worth it in which they take large amounts of silver it'd be their problem on what to do next with it.

I'm not gonna be keeping 170 kilos of silver with me lol, I'd definitely go with gold then as it's easier to store and I won't be investing 100k into silver

Liquidity is also a factor that plays but I'm convinced that it will be easy to beat any competition by lowering the price a few pennies and how is silver not liquid?

If you want the BEST price you can get you can sell individually for some time and offload the rest when it's at its peak to a dealer.

Selling ALL at once isn't such a great idea either, if I think that there is a peak in the price and it won't go higher I'd hold onto 5% just incase.

Explain how gold is more liquid that silver as it'd be around the same couple of days to sell it. Demand for it right now isn't the highest

I see gold as for the rich, I'd you have ALOT of money and you want to store it pick it however for the lower class like myself i see silver as the better choice

I'm aiming for 5% gold 95% silver

[RacerCool]

10 hours ago, xmerchant said:

That is true indeed and I agree with the gold being more stabler than silver but why?

Gold will stay like a currency and silver half currency half industrial is my guess. (with the risk of it losing its industrial value)

Governments and the elites see gold as money and as a store of value. Hence it will continue to be the go-to trading currency no matter what other currencies are an option. 

So it depends on what you're gathering PMs for: investing in the market, or storing or preserving your wealth? If it purely or even mostly to store wealth in non-paper forms then gold is your better option.