Afternoon everyone.....
There are quite a few people on this platform that stack gold, silver or both.
Today I wanted to touch on something that I believe is very important to increase your stack without working hard at all. The only thing you need is patience.
It’s the gold to silver ratio....
I’m sure you’ve heard the term before. If you haven’t here is a brief description of what it is.
It’s how many ounces of silver it would take for you to sell to acquire an ounce of gold. Or vice versa.
A very wise man taught me this at a very young age.
That person was my grandfather.
I remember my grandfather taking me with him to what I assume was a coin shop. I don’t quite remember the place, other then the guy was smoking a pipe and it was very small story.
What I remember was my grandfather handing the man a bag full of silver coins. The man went in a back room and came out with ten gold coins and handed them to my grandfather.
I was nine then. On the ride home I asked my grandfather why he did that? And he explained the gold to silver ratio and how he will more then double his money without doing anything but waiting.
When we got back to the house he explained in full detail of how it works. He said it does matter what the price is of gold or silver, it only matters how much one can get you of the other.
Every gift from that day with my grandfather at the coin shop forward my grandparents would give me either a gold coin or silver coins. Birthdays and holidays were always gold or silver.
Fast forward.....
It was my turn now. A little over ten years later I gave it a shot. I took roughly five ounces of gold to my local coin shop and swapped it out for silver.
The ratio at the time was just over 80-1, which was the highest I’d ever seen it. I did the swap and got 401 ounces of silver in all different size bars and rounds. Most of the bars were Engelhard, since their refining operation was only 15 miles away.
In 2011 right around my birthday silver exploded and the ratio went to under 30-1. Unfortunately I had sold off everything I had to recover from a bad business venture with a partner. So my stack was a fraction of what it was.
But I did still play the ratio game with what I did have.
Point being. Prices of the metals is relative, the ratio is where you make wealth.
While I am by no means a financial advisor. I am tracking the gold to silver ratio very closely. If we get under 40-1, I will be swapping out my silver for gold.