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The gold/silver ratio is down to 52, many seem to be waiting for 50 to trade. Anyone trading now or going to?

I am tempted now, as much as silver has real potential it will fall hard if there is a correction soon and could easily make it back to the mid 60's very quickly.

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The gold/silver ratio is down to 52, many seem to be waiting for 50 to trade. Anyone trading now or going to?

I am tempted now, as much as silver has real potential it will fall hard if there is a correction soon and could easily make it back to the mid 60's very quickly.

The GSR for 4000 years was about 15.

In 1970 it was 20

In 1991 it was 90

As a scientist it should probably be 15

As a manufacturing industrialist it should probably be 0.1

As a historian is could be anywhere 10-100

As a conspiracy theorist it should probably be <4

Fiat currencies are in a race to the bottom.

There are no fundamental reasons for it to be >50 or <$26.

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The gold/silver ratio is down to 52, many seem to be waiting for 50 to trade. Anyone trading now or going to?

I am tempted now, as much as silver has real potential it will fall hard if there is a correction soon and could easily make it back to the mid 60's very quickly.

Sorry - I didn't answer your question. Yes, I bought some today at noon - within 2 hours it had gone up $1/oz

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The GSR for 4000 years was about 15.

In 1970 it was 20

In 1991 it was 90

As a scientist it should probably be 15

As a manufacturing industrialist it should probably be 0.1

As a historian is could be anywhere 10-100

As a conspiracy theorist it should probably be <4

Fiat currencies are in a race to the bottom.

There are no fundamental reasons for it to be >50 or <$26.

During the Roman empire the GSR was around 12 although fluctuated. Silver has lost value since with the exception of a few periods.

There is no fundamental reason for the ratio to be anywhere, all we can do is go by charts and experience. It is a fact though that silver reflects liquidity or lack there of and falls fast during corrections, depressions and times of deflation.

rarecoins_2019_1190546.gif

You say that you brought some today but I fear that you mis understand what I mean by trading the GSR.

I mean that you sell silver and buy gold. Later when the ratio is high again then you sell gold and buy silver. There may only be one or two opportunities a year to trade the GSR. Trading this makes spot price irrelevant and profit is counted in extra ounces acquired from trading one to another.

Edited by richyc

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During the Roman empire the GSR was around 12 although fluctuated. Silver has lost value since with the exception of a few periods.

There is no fundamental reason for the ratio to be anywhere, all we can do is go by charts and experience. It is a fact though that silver reflects liquidity or lack there of and falls fast during corrections, depressions and times of deflation.

rarecoins_2019_1190546.gif

You say that you brought some today but I fear that you mis understand what I mean by trading the GSR.

I mean that you sell silver and buy gold. Later when the ratio is high again then you sell gold and buy silver. There may only be one or two opportunities a year to trade the GSR. Trading this makes spot price irrelevant and profit is counted in extra ounces acquired from trading one to another.

Do you think its about to breach 1400?

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The gold/silver ratio is down to 52, many seem to be waiting for 50 to trade. Anyone trading now or going to?

I am tempted now, as much as silver has real potential it will fall hard if there is a correction soon and could easily make it back to the mid 60's very quickly.

was going to, but due to circumstances missed the boat. Now is uparound 1400. do you think its too late.

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You say that you brought some today but I fear that you mis understand what I mean by trading the GSR.

I mean that you sell silver and buy gold. Later when the ratio is high again then you sell gold and buy silver. There may only be one or two opportunities a year to trade the GSR. Trading this makes spot price irrelevant and profit is counted in extra ounces acquired from trading one to another.

Ah, yes, I misunderstood. Apologies.

I do like that chart.

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was going to, but due to circumstances missed the boat. Now is uparound 1400. do you think its too late.

It depends on what you have and what you are doing.

If you are buying gold/silver to save then price is important. I believe that both with go much higher and that waiting for a dip to save a few £ is often pointless especially in the scheme of things. I have been waiting for a reasonable correction though in Nov, it may or may not happen, I know bugger all.

If it does happen then I expect silver to fall hardest.

If you already have gold and silver then trading the gold/silver ratio is possible and is what I was talking about.

The short version goes like this:

Ratio is 70, so it takes 1 ounce of gold to buy 70 ounces of silver. I sell gold and buy silver.

Later the ratio falls to 50. It now only takes 50 ounces of silver to buy 1 ounce of gold. I sell silver and buy gold. I now have 1 ounce of gold and 20 ounces of silver spare.

Rinse and repeat.

When trading the GSR then the spot price becomes irrelevant as it is different to just buying and holding.

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It depends on what you have and what you are doing.

If you are buying gold/silver to save then price is important. I believe that both with go much higher and that waiting for a dip to save a few £ is often pointless especially in the scheme of things. I have been waiting for a reasonable correction though in Nov, it may or may not happen, I know bugger all.

If it does happen then I expect silver to fall hardest.

If you already have gold and silver then trading the gold/silver ratio is possible and is what I was talking about.

The short version goes like this:

Ratio is 70, so it takes 1 ounce of gold to buy 70 ounces of silver. I sell gold and buy silver.

Later the ratio falls to 50. It now only takes 50 ounces of silver to buy 1 ounce of gold. I sell silver and buy gold. I now have 1 ounce of gold and 20 ounces of silver spare.

Rinse and repeat.

When trading the GSR then the spot price becomes irrelevant as it is different to just buying and holding.

i get that. But at todays price its a bit toppy, maybe, reason says its going up. if i buy it will probably drop. i just get intp etf gold ,silver copper, and take the profit. also buy sovs as they come up.

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Do you think its about to breach 1400?

Probably although a '00 is always a barrier that gets tested a few times. QE2 is a real unknown at the moment though, at least it is for me. Many are trying to work out the implications and I suspect that next week could be telling.

I have been waiting for a mid Nov correction although the seasonal correction is usually by the end of Oct and then price marches up. We could have already had the seasonal dip and I am wrong. QE2 could boost prices this year. QE2 could also be what gives a boost now and causes the late correction.

Watching the GBP/USD though post QE2 may make any rise or fall in $ terms pretty irrelevant to us at the moment.

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i get that. But at todays price its a bit toppy, maybe, reason says its going up. if i buy it will probably drop. i just get intp etf gold ,silver copper, and take the profit. also buy sovs as they come up.

That's the point. If it looks toppy then it is the time to trade the GSR. If a correction comes and metals fall then at this point it is far more likely that silver will fall harder and push the gsr up. So selling silver and buying gold is the strategy since right now it only takes 52 oz of silver to buy 1 oz of gold but if they correct and silver falls harder then it would cost more ounces of silver to buy gold.

Ofc you could just sell all and wait for the correction to buy back at a lower price but there is always the risk of being wrong. At least when trading one metal for another you still have metal.

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Probably although a '00 is always a barrier that gets tested a few times. QE2 is a real unknown at the moment though, at least it is for me. Many are trying to work out the implications and I suspect that next week could be telling.

I have been waiting for a mid Nov correction although the seasonal correction is usually by the end of Oct and then price marches up. We could have already had the seasonal dip and I am wrong. QE2 could boost prices this year. QE2 could also be what gives a boost now and causes the late correction.

Watching the GBP/USD though post QE2 may make any rise or fall in $ terms pretty irrelevant to us at the moment.

I sold all my etfs just before QE2. Hadnt a clue which way things would go. Gold jumped and i missed it. Luckily my equities did to. Its all so difficult to follow really.

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I sold all my etfs just before QE2. Hadnt a clue which way things would go. Gold jumped and i missed it. Luckily my equities did to. Its all so difficult to follow really.

Ouch.

I went short and did well, also had a buy order but it wasn't tripped so I missed the upswing because I was too unsure to have set it right.

I was lucky. You sold to early. We both missed out on extra but neither of us lost. Not a bad day for either of us then.

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Ouch.

I went short and did well, also had a buy order but it wasn't tripped so I missed the upswing because I was too unsure to have set it right.

I was lucky. You sold to early. We both missed out on extra but neither of us lost. Not a bad day for either of us then.

i suppose next question is would you be buying next week at probably over $1400

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i suppose next question is would you be buying next week at probably over $1400

If the correction does not come then I will only be torn between buying more with cash or selling silver for gold or both.

I dont think that 1500 is out of reach by year end or 1600 soon after. What the GBP rate will be is my issue. I will still probably be buying though as longterm I like the odds better than those of sterling.

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If the correction does not come then I will only be torn between buying more with cash or selling silver for gold or both.

I dont think that 1500 is out of reach by year end or 1600 soon after. What the GBP rate will be is my issue. I will still probably be buying though as longterm I like the odds better than those of sterling.

thats another thing. is it best to buy in £ or $. i tryed both recently and gained better in £

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That's the point. If it looks toppy then it is the time to trade the GSR. If a correction comes and metals fall then at this point it is far more likely that silver will fall harder and push the gsr up. So selling silver and buying gold is the strategy since right now it only takes 52 oz of silver to buy 1 oz of gold but if they correct and silver falls harder then it would cost more ounces of silver to buy gold.

Ofc you could just sell all and wait for the correction to buy back at a lower price but there is always the risk of being wrong. At least when trading one metal for another you still have metal.

If you are trading physical silver for gold, wouldn't you need to factor VAT into the spot ratio ?

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I reckon part of the reason for an upsurge in Silver purchasing in the UK,is people wanting to get in before the VAT rise.

I wonder, if this is so, how much it adds to worldwide demand. Probably little in the big scheme of things but, I know suppliers here are struggling to keep up with demand.

Edited by GinAndPlatonic

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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