Considering swaping silver for gold.

[Heimdhal]

I am very, very light on gold, and heavy on silver. I'd like to balance it out a little and get some more gold, motly in fractionals.

I'd like to trade for about an ounce to an 1 1/2. The ratio's been sitting in the low 50's (51 right now) for a while, which seems like a fair trade over the last so many years.


What do you all think? Think the ratio might peg down in the future, or think its wiser to spread my holdings out more evenly over the two metals?

[Silver Rocket Bitches!]

I did this last year around the middle of April. It worked out quite nice. The ratio then was something like 35:1 and I ended up trading off closer to 40:1 which I was happy with.

I wouldn't do that now at present. We'll see that ratio back in the 30s eventually. Maybe even the 20s. Silver is still primarily viewed as an industrial commodity. Eventually, I suspect, we'll see gold trading sideways and silver climbing to new highs once silver retakes its monetary role and the manipulators run out of places to kick the can.

[Neuro]

Yeah I did the same as Silver Rocket Bitches, around 35:1 on average (best trade at 33:1!)... Then I traded it back at 54:1 in September, since then it's been quite boring, but I expect it to get below 30-1 this year. But who the hell knows if we get a full SHTF scenario, in that eventuality I expect gold to be better (more liquid, and easier to carry). But as for now I'll remain heavy silver (about 2:1 in value)...

[gunDriller]

I am very, very light on gold, and heavy on silver. I'd like to balance it out a little and get some more gold, motly in fractionals.

I'd like to trade for about an ounce to an 1 1/2. The ratio's been sitting in the low 50's (51 right now) for a while, which seems like a fair trade over the last so many years.

What do you all think? Think the ratio might peg down in the future, or think its wiser to spread my holdings out more evenly over the two metals?


being heavy silver is the kind of 'problem' you WANT to have.

the last 5 years, the Gold Silver ratio has always tightened up as Silver rose (Silver tends to rise more than gold ... today gold was up 1 1/2%, silver was up 3%).

2 options -
* weight for the ratio to tighten, if prices keep rising. i think it will be a very volatile year, which means there will be additional price dips for both metals.
* save your cash for buying gold fracs on the dips.

true, it can be gut-wrenching if you have mostly silver and it falls from $48 to $26 - especially if you are using that money to make purchases - or bought some in the $30's.

[Shami-Amourae]

My personal view is if the Silver/Gold ratio is 40 or above, it's time to buy Silver. If it's below that buy Gold. I use the ratio of 40:1 since it seems to be the mean ratio for the past 100 years.

I'm 50/50 into Gold/Silver holdings. I'm more bullish on Silver, but I like playing it safe too. I don't think you should trade in your Silver for Gold until the ratio goes to less than 40:1. If I were in your shoes I'd swap out at 30:1.