TRYING TO "Play the GSR" -- HORRIBLE IDEA

Silver tanking bad. Probably going back to the teens soon. I hope Platinum does better. I know Gold will.

GSR 80

STILL WAITING

 

Log in or Sign up to hide this ad.

When Silver starts tanking, the silver crowd disappears quick. I love it​

 

Familiar. All too familiar

 

I don’t think many of us care about the daily volatility.

Year to date mean more to me.

 

And you will be no where to be found when your "GSR IN THE 50S" Prediction comes no where close.

And that Robert Kiyosaki guy that's the same guy who was pumping real estate right before the great recession. Lol.

 

GSR 81

STILL WAITING

 

There is a reasonably intelligent way to play the GSR - it's called portfolio balancing. You set aside a sum to put in PMs, and pick a ratio of the dollar amounts you want in each metal - say 60% gold, 40% silver. Then you pick an allowable variance - the amount the ratio can change before you rebalance - say, 5%. [The bigger the allowable variance, the less often you have to rebalance.] If your portfolio gets up to 65% gold, you sell enough gold and buy enough silver to get it back to 60%. Or if silver gets up to 45% of your portfolio, sell silver and buy gold. This is done all the time with stocks and bonds; there are even mutual funds that will do it for you. Of course, you might have done better being 100% in gold - or maybe, should have been 100% in silver. But as the saying goes "Prediction very difficult, especially with regard to the future." Portfolio balancing eliminates the need to predict; you are always buying [relatively] low, selling [relatively] high. Note that although you are in effect playing the GSR, you really never need to pay any attention to what it actually is.

 

There is a reasonably intelligent way to play the GSR - it's called portfolio balancing.

I probably should have noted that transaction costs make this impractical for small time investors in PMs. I tend to forget that not everybody deals in 1000 oz silver future contracts. Maybe some sharp Wall Street guy will start a PM fund which automatically rebalances; that would make it practical for the small guy.

 

So if ratio went up to 65% you would sell enough gold to get it down to 60%, while at the same time buying more Gold the next time you add to the portfolio. Selling and buying at the same time can't be a good idea. Well let me preface that since everyone in this board always buys way under spot and sells way over. And still aren't rich. Go figure that one. Still it seems the smarter thing to do would just buy 100% of whichever metal fell below your allowable variance until you get back to 60/40 or whatever. But this that you are talking about here is something different than playing the GSR.

GSR 81
STILL WAITING

 

Every time I look at the GSR I think of this thread.

GSR 68.50

 

The GSR is meaningless. All financial measurements are pretty much meaningless beyond how much beer is in the glass in front of you. There is so much excess in nearly everything that the only rational explanation is a currency that has blown-up and been destroyed, but without anyone acknowledging it yet. It's showing-up everywhere, from Bitcoin to medical costs to real estate and stock prices. Check this coin out that sold the other day at Heritage. Has less than a fifth of an ounce of gold in it, they minted 2.9 million of them, and yet it sold for the equivalent of over $61,000 an ounce gold. Why? Because it is allegedly the nicest example in existence. But it's such a common coin, it's like holding-up and M&M and saying, "this M&M is the very nicest one out of a bag containing 2.9 million M&Ms". A complete, utterly, totally, meaningless measurement of value when expressed in dollars!!

 

Your right

Your right about them blowing up the currency. Sad, and one has to diversify to survive this game. The Reddit - walsltreetbets, Short seller debacle is back to the same old thing. The people on the street figured out a way to win and the rich dont like it. They will force people back into their holes and the short selling billionaires will get whatever they want. Things really dont change until their is blood in the street. That will happen because of the greed of the FED Banksters, Medical community, Wallstreet, so much greed to go around. They have destroyed the ability to get a good paying job like 1945 - 1995 and that, you cannot change in a year, or 5

 

Ahh ... Short Sellers. Gotta love 'em They have over 100% Shorts on GameStop .. so they deserve what they get.

It reminds of Herbalife and Ackman (Shorted) vs Icahn (drove the price way up). you gotta love a good fight and financial destruction. But when two billionaires do it it's fun to watch .. when the masses vs Billionaires for some reason it's wrong.

 

double post

 

There's talk that Robinhood may end-up in receivership before the weekend is out as a best case scenario. The alternative, a Lehman Brothers collapse on Monday morning and complete pandemonium in the markets.

 

There's talk that Robinhood may end-up in receivership before the weekend is out as a best case scenario. The alternative, a Lehman Brothers collapse on Monday morning and complete pandemonium in the markets.

 

Not to mention the lawsuits RH is going to be facing, some of which have already been filed

 

.

 

I noticed silver briefly spiked to near 29 a few days ago. But back down to 26.9.

At least silver has been averaging mid-20's. We may not see teens anytime soon again. It's exceeded my expectations.

 

It hasn't been under 22 in almost a year. I'd say those who bought at low 10's are doing good. It's been averaging around 25 for months.