Want To Play The Gold/ Silver Ratio
I've been itching for most of the year to trade some silver and for gold. While looking at what my target should be, I try to factor in where I think we're going to go, the historical averages, but my end goal is. I originally picked a ratio of 60 oz of silver for an ounce of gold. For a while it look like I was marching right towards my goal, but now I'm not so sure.
Either way in preparation of this potential trade I decided to root around my storage dig up the backyard and go scuba diving to my sunken boat to find some silver to trade. These 10 oz bars were bought with the sole purpose of playing the gold silver ratio, because I don't really care about them they're big they're chunky they're heavy and to be honest most of them are ugly. really they're just silver to me. These are not like the artistic bars and rounds that I have that I won't trade off even when the premium goes sky high.
It looks like silver is dropping, gold is rising and the ratio is moving back towards 70 and potentially in my higher, I'm not sure if I've missed my opportunity or if I should just pull the trigger now.
Taking a look at the church below clearly this is still one of the better ratios we've had for a long time, that's not to say that it's the right time to make this trade.
I'm wondering are you more experience to silver gold stackers who have done this with real physical silver and gold in the past what type of premiums do I need to add on top of this ratio. I assume that most of the local coin shops who would actually trade physical silver for physical gold are going to charge me a premium of gold and not give me the full value of silver. All I personally feel like this is a little bit crazy giving you premiums they get right now for silver, and the physical silver shortage that most coin shops are climbing but still feel like my ratio is going to creep up closer to the 75 and above range and I'm not sure I feel like paying a 5 oz premium or more just to trade. It might move me out of my trading range and I'd rather just hold the silver.
How many ounces or what percentage is in a reasonable markup above the straight gold silver ratio? Or do I just hold the silver and wait till my 60:1 and end up paying that 63:65 to one that it will take.
Either way I'm not sure what I'll end up doing, I hope it moves back door down towards 60 which would mean silver is taking some big increases again. Either way here's another glamor shot of 60 oz real world physical metal. It is kind of nice to hold these in your hand and feel how heavy they are, it gets you back to honest money that has real physical weight to it there's just something about that weight that's hard to beat.