Bullion Investing forum has went down hill

Thank you, good sir. That's exactly the kind of CONFIRM I meant, and you can see there's no harm in that. (Ridiculous contrary assertions, notwithstanding.)

Unfortunately, it's precisely an "I'll offer you x silver for y gold" exchange that we're talking about, like the Swap Forum. While it's remotely possible someone has done a profitable Au-Ag-Au (2x)swap, there's no evidence of that. Bullionists here hoard, and the Swap Forum doesn't indicate it's plausible after all. The psychology behind it might the decisive failure.

 

Log in or Sign up to hide this ad.

I guess I will fall into the "internet troll babble" but I have successfully swapped gold and silver back and forth many times. If you care to hear the details, read on, if you don't care to because I don't have receipts for transactions between two private parties, then stop now.

I heard about successful swapping from a friend years ago. Decided to try it myself. Set myself some ground rules, for example, the silver had to be American Silver Eagles, and the gold had to be in 1/10, 1/4, 1/2 and/or 1 oz gold eagles. I did this for a number of reasons, the main one being liquidity and to distinguish/separate this portion of my collection/stack from the rest (which was never an issue really as I mainly collect numismatic pieces).

Started the experiment with a 1oz gold eagle. Traded it for 50-55 oz of silver (this is from memory). This trade was in favor of the other party, meaning, if the ratio was 52-1, I only received 50 oz of silver. Easy enough math so far? I stuck those away for awhile. Forgot about it for awhile. Was approached by a friend of a friend almost 6 months later if I was willing to trade silver for gold. Traded in my favor for 2x 1/2oz gold eagles, and a 1/10oz gold eagle. So as of this moment, I was up a whopping 1/10oz eagle. The next trade came quicker, with me trading the two 1/2 oz gold eagles and receiving something like 56 or 58 silver eagles. As of this moment in time, I had lets call it 56 oz of silver and a 1/10oz gold eagle. Some time passes again, and I trade with a dealer who I met through the first gentleman I traded with for 50 oz of silver for 4x 1/4 oz gold eagle. I liked this trade because it left me with I think 8 silver eagles, 4 quarter oz gold eagles, and a 1/10 oz gold eagle. Some time passes again, and I traded a gold quarter eagle + the 1/10 gold eagle and the 6 of the 8 silver eagles for a 1/2 oz gold eagle. All said and done, I had 3x 1/4 AGE, 1x 1/2 AGE and 2 ASE's.

So, when all was said and done, I had 1.25oz gold in fractionals, and 2 ASE's when I had started with a single AGE. Did I get rich? No. Is it possible to make money on it? Sure. I liked it because I took a 1oz gold bullion piece, and ended up with smaller fractionals, more weight, and a few oz of silver.

 

Thanks, OldGoldGuy: swap dates, approximate?

 

I just shot a text to two of the people trying to get a better idea of when. From beginning to end it was roughly 2 years, give or take. Which just goes to show, to only end up with an extra 1/4 oz of gold and 2 ounces of silver after 2 years....don't quit your dayjob. But it can be done profitably.

 

Grateful thanks again, OldGoldGuy!

 

I think silver might be the thing to have for the short term, since it seems to go to lower lows and higher highs compared to gold. So if both are going up, silver could go higher. Just an observation.

 

Del Rio. When did anyone say they traded even up or for an immediate profit?

By the way, trading in stocks includes paying fees.

Whatever your label is for trading silver-for-gold, or visa-versa, is not how this works.

It is a very simple and fair process, something I personally have never done but I do fully understand the logic.

Real simple: Buy gold and silver while the ratio is around 80-1. When the ratio is at what one considers low (35-1 or better) have a "Trade" point you are looking to hit. My LCS buys most common .999 Ag at spot, sells most common Au around $80 over these days. At $50 an ounce for Ag lets say I am paying two ounces Ag for each ounce of Au I pick up.

When the ratio is back to 80-1 I trade my Au at $30 over spot, buy Ag at about 10% over.

So, roughly I doubled my silver stack after the cycle is over. Or, I replaced it and kept the additional Au, whichever my plan calls for.

Same thing lets say as selling my Ag on my own then buying Au from someone else. I can cut my costs a little this way, but I trust and care about my relationship with my LCS to much, they are safer to deal with.

 

Gold has outperformed platinum by about 7% in the last 30 days. If that trend can continue to to produce a $80 gold premium over platinum, I'm going to trade a couple half ounce apmex gold rounds for platinum eagles. I'd likely have to still kick in a little cash to make it happen, but platinum for less than gold is a deal in my book.

 

How is this for the price of bullion https://www.moderncoinmart.com/blast/20150128_gold_eagle_special.jpg

 

I suggest you stop complaining and start gathering insightful data from your crowd and post it here to get it back to your liking.