Learning and playing the ratio ….
Afternoon everyone….
I’m sure many of you have heard of and know what the gold to silver ratio is. For those of you that don’t know, here is a quick explanation.
The gold to silver ratio is how many ounces of silver would it take to equal one ounce of gold in market price. It’s basic math, you divide the spot price of gold by the spot price of silver. This gives you the ratio. Which is currently just under 90 ounces, sitting at 89.9 to be exact.
The experts say that the true ratio coming out the ground is like a 16-1 ratio silver to gold. While that very well be the ratio being mined, the lowest the ratio has been in modern days has been 42-1.
The reason I am bringing up is that there was a chance roughly six months ago where the ratio had dipped into the low 70’s. I was going to pull the trigger and swap out some silver for some gold. If I remember correctly the ratio was just under 73-1.
But I didn’t…..
I had so much going on between working and the new shop build and family concerns with my daughter.
I’m well aware that hind sight is 20/20, and I’m not complaining. But it would’ve been the right move. The ratio had climbed to nearly 100-1 recently, which would’ve been a huge free addition of ounces if played.
If you are no where near retirement playing the ratio can really do major things for your stack. If you flip silver for gold at 70-1, then hold it waiting for the ratio to go back over 85-1. Then you just gained an additional fifteen ounces of silver for the same one ounce of gold. It can really add up quickly.
You received an upvote of 80% from Precious the Silver Mermaid!
Thank you for contributing more great content to the #SilverGoldStackers tag.
You have created a Precious Gem!
That's a metric I don't follow but I see it could be lucrative. It's a long game for sure so not my play.
!pimp
It's almost like the hive to HBD ratio.
It's a nice idea but there's also the possibility of silver rising and closing the gap unsuspectingly 😂😂
It's fascinating how the gold-silver ratio can be such a powerful tool for us who have the patience and knowledge to leverage it. @silverd510. It’s like playing the market’s own little see-saw. When you notice the ratio swinging in your favor, making those trades can really stack up the extra ounces quickly. Flipping your silver for gold at 70-1 and then making the swap back when it heads over 85-1 is a solid move. You’re kinda making the market work for you, which is pretty clever. Just keep an eye on those premiums and fees when you’re trading, though. They can sneak up on you and cut into the gains. Also, storing all that silver can get a bit tricky since it’s bulkier than gold. It’s great to hear you’re on top of these trends!
!BBH
!LADY
!PIZZA
View or trade
LOHtokens.@silversaver888, you successfully shared 0.0100 LOH with @silverd510 and you earned 0.0100 LOH as tips. (7/50 calls)
Use !LADY command to share LOH! More details available in this post.
I wouldn't even know where to trade gold for silver
A local coin shop is best. But they changed the laws several years back. You used to be able to just swap them dollar for dollar. Now you have to sell the one metal and buy the other. It’s just an extra step. You negotiate the prices of each first then do the transaction.
And I was just thinking of a Cu/Ag ratio in trading all my Wheat pennies for the equivalent value of Silver Lincoln rounds. Would that make sense?
My family have collected loose change over the decades filling several jars of mostly pennies.
!PIMP