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Selling off some silver to buy some gold

tneigtneig Posts: 1,505 ✭✭✭
in Precious Metals
With such a drastic drop in Gold, I'm thinking of reducing some silver bulk in exchange for gold. Especially if
I can get spot + for the generic silver. Reasonable idea?
COA

Comments

  • jmski52jmski52 Posts: 22,862 ✭✭✭✭✭
    You might be able to find a trade in order to eliminate some transaction costs. I can't give an opinion on whether it's a good idea, because both metals have their advantages and the decision is mostly a personal evaluation. Especially since both metals are well off their highs.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bronco2078bronco2078 Posts: 10,226 ✭✭✭✭✭


    Nope image Trade with someone who thinks the opposite . Converting it to fiat then buying gold you get whacked twice
  • cohodkcohodk Posts: 19,137 ✭✭✭✭✭
    At 80:1 buy silver. At 30:1 buy gold.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,862 ✭✭✭✭✭
    Well, duh. What do you do at 63.25?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • dbcoindbcoin Posts: 2,200 ✭✭


    << <i>At 80:1 buy silver. At 30:1 buy gold. >>



    it's 63:1 now. So silver is the better bet.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    You should not settle for less than spot on any physical silver.

    "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

  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Nope image Trade with someone who thinks the opposite . Converting it to fiat then buying gold you get whacked twice >>



    Well said.
  • cohodkcohodk Posts: 19,137 ✭✭✭✭✭


    << <i>Well, duh. What do you do at 63.25? >>



    Risk/reward is not well defined at these prices, so my answer would be nothing.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • DrBusterDrBuster Posts: 5,379 ✭✭✭✭✭
    Man at 60:1 I'd be going the other way for the GSR swap.
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Both metals have their value... playing one against the other is just another gamble (IMO), I gather both and seek the best opportunity for each. Cheers, RickO
  • tneigtneig Posts: 1,505 ✭✭✭
    The bulk of silver is a burden in storage and transport as well and would do better with a little higher ratio of gold is the main reason.

    Its different for each person's world and sphere of relations with other stackers. I have few to no stacker friends other than here. Most show little to no interest let alone to buy.
    So my world of selling/trading silver to local folks in an emergency is nill, being more likely people will understand gold a little better. (more on that later)

    Because of possibilities of fake and less known products, converting the junk AGs to ASE/AGE makes it worth it.

    I won't sell silver for less than spot, +1+ or better as I go, to help cover the conversion.
    I'll look for direct trading too, however because of possible fakes, will deal with well known sellers/dealers.
    COA
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    So my world of selling/trading silver to local folks in an emergency is nill, being more likely people will understand gold a little better. (more on that later)

    If they're not interested in trading for your coin collection, maybe they'll be interested in trading for your stacks of booze, smokes (both kinds), or canned food.

    Liberty: Parent of Science & Industry

  • AmigoAmigo Posts: 966 ✭

    my Son made a funny comment just yesterday

    Dad, instead of paying all the storage fees for your silver bars, why don't you just throw them in the backyard as a Junk Pile. No one would know what they were. He may have something there, lol
  • DoubleEagle59DoubleEagle59 Posts: 8,315 ✭✭✭✭✭


    << <i>At 80:1 buy silver. At 30:1 buy gold. >>



    I totally agree.

    Currently, at 63:1, I would still be buying Silver instead of Gold but it's not as clear cut as when the ratio is 80:1.

    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • tincuptincup Posts: 5,142 ✭✭✭✭✭
    I think the old rule of thumb for the gold/silver ratio no longer applies (what was it... 20 to 1 or somewhere thereabout many years ago?).

    And when was the last time the ratio was 40 or below?? And how long was it at that level of ratio?

    The point I'm trying to make is that at 63 it may not be a bad time to get some gold. Perhaps it is now in the middle of the new range, if that is important for some to refer to that when deciding between gold and silver.

    There are other reasons for purchasing gold rather than silver other than the ratio. As mentioned, the storage of the volume. Silver is much bulkier, and perhaps one would want to convert some just for this reason.

    ----- kj
  • cohodkcohodk Posts: 19,137 ✭✭✭✭✭
    This 60:1 ratio really isn't new...been like that for about 30 years now.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • yellowkidyellowkid Posts: 5,486 ✭
    If your holdings are all silver, I would want some gold and now is as good a time as any. If you are only buying a couple of ounces, I would try and find someone to trade with, but I wouldn't not get gold because I had to sell the silver at a less than optimum price. I agree the ratios don't seem to be relevant anymore.
  • DoubleEagle59DoubleEagle59 Posts: 8,315 ✭✭✭✭✭


    << <i>This 60:1 ratio really isn't new...been like that for about 30 years now. >>



    Oh....I don't know about that.





    image
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • cohodkcohodk Posts: 19,137 ✭✭✭✭✭
    Got a 30yr chart?image

    But even todays ratio of 64 is the same as it was in 1994--20 years ago.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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