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.
