Trade in Ag for Au?

[steyr_m]

I have a very high amount of silver compared to gold. With all the talk with the missing German gold, I think Au might out perform Ag this year.

2 oz Au will need ~140 oz Ag. I know silver follows gold, but I can sell the gold and buy back the silver before it goes up too.

Thoughts?

[Neuro]

I have a very high amount of silver compared to gold. With all the talk with the missing German gold, I think Au might out perform Ag this year.

2 oz Au will need ~140 oz Ag. I know silver follows gold, but I can sell the gold and buy back the silver before it goes up too.

Thoughts?
Right now the ratio is around 63:1, if you have to pay 70 oz Silver to get 1 oz of Gold (around 10% premium), you'ld have to pay that when you are trading it back too. So the ratio has to be at least 77:1 for break even on a back and forth trade... Historically it is very rare event to have a ratio over 80:1.

Sure I can see it going over 100:1, this year, but historically it is rare, if it "just" goes to an 80:1 ratio, its hardly worth the hassle.

Myself, anything I can afford to spare after expenses I put in gold now, I don't change my silver into gold, still long term I think it has the greatest potential. However if you feel you don't have enough gold for SHTF purposes (as I consider it the premier SHTF metal in terms of widespread acceptance), then it is a good idea to change some of your silver over. However you'll probably do even better with tuna/mackerel/salmon cans, and packs of coffee...

[StreetsOfGold]

At the current ratio I would not. I agree with Neuro

[ximmy]

For myself, I'm not going to bother trading metals. (maybe you could make a few extra grand, big deal...) I have a large enough stack so that when the price gets into three digits, I'll trade or cash some in for some more land.

[Silver Rocket Bitches!]

I'll trade Ag for Au once the ratio gets into the 40s, as it did in 2011. I wish I had traded more.

I like silver's fundamentals more than gold's. There is no more strategic stockpile as there was the last time silver hit its nominal high. Technology has us dependent on silver with much of it ending up in landfills, never to be recovered. On and on it goes.

Gold is gold. Once mined, it stays above ground with little industrial application.

We may live to see the day when the ratio returns to its natural 16:1 but I'll trade it in long before that just because gold is so much easier to carry/hide.

[osoab]

Bad spot to do the trading imho. Still in muddy waters.

http://www.kitco.com/hist_charts/3650d_sm_gold_silver_ratio.gif

[steyr_m]

Thanks guys [and gal] I was ready to pull the trigger.

[madfranks]

Bad spot to do the trading imho. Still in muddy waters.

http://www.kitco.com/hist_charts/3650d_sm_gold_silver_ratio.gif

That is a good chart, osoab, and yeah it seems to show that it could go either way from here.

[gunDriller]

I have a very high amount of silver compared to gold. With all the talk with the missing German gold, I think Au might out perform Ag this year.

2 oz Au will need ~140 oz Ag. I know silver follows gold, but I can sell the gold and buy back the silver before it goes up too.

Thoughts?

Too much Silver ?

THAT'S THE KIND OF PROBLEM YOU WANT TO HAVE.

Unless you are moving or doing something where the silver weight is cumbersome/ hard to defend & protect.


In 2003 I had a safe deposit box where my back-up hard drives shared space with 4 Engelhard bars. 100 ouncers.

Not knowing what a great problem I had, I found it was difficult to take my back-up hard drives to the bank to store them in the box. It was a weekly ritual and the heavy box became a pain.

so I sold the bars, for $2000. I was buying Gold at the time, so that would have bought almost 6 ounces of Gold. GSR at the time was about 70.

In hindsight ... :)

[govcheetos]

Certain things should never be sold. Gold/silver, good quality tools, family heirlooms, your dog.

I'd just add to the stack from things that aren't needed.

[osoab]

That is a good chart, osoab, and yeah it seems to show that it could go either way from here.

I am thinking that the ratio could stay in this range for an extended time.

Swapping at 50:1 seems plausible you would need at least 80:1 to swap back imho. Make up for the time, effort and premiums.

http://goldprice.org/charts/history/gold_all_data_silver.png

[steyr_m]

I am thinking that the ratio could stay in this range for an extended time.

Swapping at 50:1 seems plausible you would need at least 80:1 to swap back imho. Make up for the time, effort and premiums.



I was thinking that with all these countries gold missing [and the price really takes off] we have a ~77:1 ratio now, but it could go to 200:1 if gold spikes.

[Hitch]

I was thinking that with all these countries gold missing [and the price really takes off] we have a ~77:1 ratio now, but it could go to 200:1 if gold spikes.

Now that would be something to see, a 200:1 ratio. I bet if gold spikes, big brother will take little brother silver up with it.

Are you rethinking making the trade? You could trade a percentage, and see how it goes. Personally, I'm top heavy in silver too, but do not want to bother trading. If I do have extra FRN's to trade for PM's, I would definitely pick up more gold however.