Using the AU/AG ratio to convert.
akuracy503
Posts: 1,923 ✭✭✭
Wondering how many use the shrinking au/ag ratio as an opportunity to convert by selling ag and buying au?
How do you feel about purchasing gold at todays prices vs holding your silver?
How do you feel about purchasing gold at todays prices vs holding your silver?
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IMHO, silver still has a bigger % gain to jump than gold.
Too many positive BST transactions with too many members to list.
is $4500 Au more attainable than $160 Ag? or is $160 ag more attainable than $4500 Au. i am leaning on silver horse, ATM.
with todays prices i am ~56% in gold and 44% in silver (and most my silver is the ugly kind war and 40% bought years ago silver proof sets and only 25 or so ASE). the gold is bullion in denominations from 1/10 to an ounce with exception of an ungraded MS double Eagle.
the percentages are the value i estimate i could get selling (less any fees if i chose the ebay route.) no one needs to know the $$$ amount
i dunno if i should trade up to 90% with my garbage junk silver? or sell some Ag and buy 90% with it. any advise would be helpful.
if the OP feels i am hijacking let me know and i'll start a new topic.
Thanks for chiming in.
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Why?
Because it protects you on both sides of the G:S trade.
You don't know if the Gold:Silver ratio will continue its move to perhaps 25:1 or if there is an economic slowdown the ratio will reverse and go back to perhaps 55:1 (which is also possible).
To put your eggs in one basket (by owning all Gold or owning all Silver) places you on one side of the bet only and you could be a loser if the G:S ratio does not go your way.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
As I have voiced before the ratio has become meaningless to me because I view each of the two markets on its own merits. There will always be some correlation between the two simply because they are both real money.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Not a good time to convert any one to the other with price of both at a high. If anything sell one or both and buy the on the next dip. I believe in the long run gold will prove to be as golden as silver. I'm keeping both stacks as they are and adding on dips. At the moment gold is undervalued to silver IMHO.
As I have voiced before the ratio has become meaningless to me because I view each of the two markets on its own merits. There will always be some correlation between the two simply because they are both real money. >>
Price has absolutely nothing to do with converting from gold to silver or from silver to gold.
It's the 'RATIO' that's important, not the price.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>
<< <i>Not a good time to convert any one to the other with price of both at a high. If anything sell one or both and buy the on the next dip. I believe in the long run gold will prove to be as golden as silver. I'm keeping both stacks as they are and adding on dips. At the moment gold is undervalued to silver IMHO.
As I have voiced before the ratio has become meaningless to me because I view each of the two markets on its own merits. There will always be some correlation between the two simply because they are both real money. >>
Price has absolutely nothing to do with converting from gold to silver or from silver to gold.
It's the 'RATIO' that's important, not the price. >>
Please explain how ratio is more important than price and how you use it in your buying (or selling) decision. Price has everything to do with buying or selling. Because ratio can be affected not only by strength of one but also by weakness of the other it remains meaningless to me. I will continue to judge each of the two markets on its own merits and not by the price of the other. Viewing ratio charts only tells you that one should move up OR the other should move down. Rather than guess, I'll continue to take my pick based on the merits of the individual market.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>
<< <i>Not a good time to convert any one to the other with price of both at a high. If anything sell one or both and buy the on the next dip. I believe in the long run gold will prove to be as golden as silver. I'm keeping both stacks as they are and adding on dips. At the moment gold is undervalued to silver IMHO.
As I have voiced before the ratio has become meaningless to me because I view each of the two markets on its own merits. There will always be some correlation between the two simply because they are both real money. >>
Price has absolutely nothing to do with converting from gold to silver or from silver to gold.
It's the 'RATIO' that's important, not the price. >>
Please explain how ratio is more important than price and how you use it in your buying (or selling) decision. Price has everything to do with buying or selling. Because ratio can be affected not only by strength of one but also by weakness of the other it remains meaningless to me. I will continue to judge each of the two markets on its own merits and not by the price of the other. Viewing ratio charts only tells you that one should move up OR the other should move down. Rather than guess, I'll continue to take my pick based on the merits of the individual market. >>
Read this post of mine from a few days ago. (Five lines below).
Although it assumes you trade metals at the absolute best times (to take advantage of the fluctuating ratios) it demonstrates how one can build their PM holdings irrespective of the PM price movement up or down.
I stress that if one is holding precious metals for the long haul, you would be very unwise to not pay attention to the ample opportunities to trade the PM ratios.
And it doesn't even have to be silver and gold.
Right now trading silver for Palladium, platinum or even rhodium is very advantages (but I'm not about to get into that).
http://forums.collectors.com/messageview.cfm?catid=42&threadid=807051&highlight_key=y&keyword1=fun
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>Read this post of mine from a few days ago. (Five lines below).
Although it assumes you trade metals at the absolute best times (to take advantage of the fluctuating ratios) it demonstrates how one can build their PM holdings irrespective of the PM price movement up or down.
I stress that if one is holding precious metals for the long haul, you would be very unwise to not pay attention to the ample opportunities to trade the PM ratios.
And it doesn't even have to be silver and gold.
Right now trading silver for Palladium, platinum or even rhodium is very advantages (but I'm not about to get into that).
http://forums.collectors.com/messageview.cfm?catid=42&threadid=807051&highlight_key=y&keyword1=fun >>
Gotta throw the BS flag on that one. Trading one for the other involves first selling one then buying the other. The decision to do that is based on two things: the current price of each and the pojected movement of each. Note that I used the word "each." While the ratio may give you a hint on the trend it is not the determining factor. Ratio might point to silver over gold, but is it because silver is getting stronger or is it because gold is getting weaker? And if one is getting weaker should one sell or should one buy more? These decision are based on the individual market and not their price relationship to each other. All ratio tells us is the relationship of price between two investments. It does not tell us which one we should buy. We make that decision by looking at each of the two markets on its own past and projected performance.
The other flaw is "unwise to not pay attention to the ample opportunities to trade PM ratios." Trading one physical PM for another involves fees depending how its done and involves shipping costs as well. There is also a time lag to consider between the current "good time to sell" and the actual time of finding the buyer. The cost of conversion has to be considered when deciding whether to hold (at no additional cost).
Moving form one metal to another is a good way to maximize profit. However things other than ratio should be considered when doing so. Moving from one to the other is not "trading ratios." It is trading investments.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'd say that the ratio may very well change over time as the world citizens are allowed to buy the product. Silver to me seems to be the best PM since it isn't recovered and will require quit the price jump before that will happen, we've used most of all that's been mined and at some point that will change but will it be in our lifetimes is the question. JMO
http://www.fidelitrade.com/products/product_list_top.asp
You could sell a AGE 1 oz of gold for $1471.77 and purchase ASE's at a rate of 36.17 to 1. Which doesn't included shipping or insurance. For us average Joes that can't just pour in hundreds of thousands of dollars that's a more realistic look. These rates aren't paper trades and they vary though time.
Now you guys buying the 1000oz bars and big bars of gold you can make a lot of money but you've got a lot of money exposed at the same time.
<< <i>I am certainly selling silver at this point, but even though the ratio has dropped well below 50:1, I'm not sure I want to buy gold at these levels. >>
I guess I'm not one to want to buy paper right now so I'll just sit and wait until the dust clears. Really I'm trying to preserve my buying power so I may get to retire someday. I'm not in it to make a killing but I'm in my 50's so that advice wouldn't be for everyone it a personal choice and only after the fat lady sings we'll find out who was the most correct.