Question for stackers

[Nicolaw]

Hi all,

Fairly new here to TSF....

I am building up a stack and wondered if people follow the Gold Silver ratio for their stacking? Right now Silver seems best to buy with GS ratio of over 80....

Does anyone else do this and think its better for investments returns..... or do people do other things?

I know people stack for a mixture of reasons, but for those who want to build up a pot for diversification and investment purposes, do you follow the GS ratio?

Thanks all:)

[Bigmarc]

38 minutes ago, Nicolaw said:

Hi all,

Fairly new here to TSF....

I am building up a stack and wondered if people follow the Gold Silver ratio for their stacking? Right now Silver seems best to buy with GS ratio of over 80....

Does anyone else do this and think its better for investments returns..... or do people do other things?

I know people stack for a mixture of reasons, but for those who want to build up a pot for diversification and investment purposes, do you follow the GS ratio?

Thanks all:)

I stack 15 Oz of silver to one sovereign, I try to look at the gold to silver ratio to know when to buy and sell my silver. 

[Tn21]

Its. Good strategy not that I have done it. 

 

@Darr3nG any tips advice ?

[Darr3nG]

First piece of advice is ignore the actual Gold : Silver ratio and focus more on the real "trading" ratio (with premiums)...

 

Step 1: What is the cheapest gold ounce you can buy? Usually a Krugerrand for about 3% over spot.

Step 2: From the Buy/Sell section of the forum, work out the going rate for 1oz Silver, based on current sales of full bullion tubes.

Step 3: Use that as your swap ratio, and figure out if it works for you...

 

Example: Right now a 1oz Krug is for sale @ £1560 and 1oz Silver is approx. £24/ounce - Trading Ratio = 64:1

Go one further and work out the the Sovereign to 1oz Silver Ratio... approx. 16:1

 

I have traded both ways, using this method and it worked really well - I possibly did it at the right time, but I was originally swapping sovereigns for 20oz Silver, and a few months later swapping back at 15/16:1 (free silver for me  )

 

Good Luck! It takes patience and good timing, but can be done.  

[LawrenceChard]

1 hour ago, Nicolaw said:

Hi all,

Fairly new here to TSF....

I am building up a stack and wondered if people follow the Gold Silver ratio for their stacking? Right now Silver seems best to buy with GS ratio of over 80....

Does anyone else do this and think its better for investments returns..... or do people do other things?

I know people stack for a mixture of reasons, but for those who want to build up a pot for diversification and investment purposes, do you follow the GS ratio?

Thanks all:)

This would be a good starting point:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

😎