Message:

<p>[QUOTE=&quot;Rono, post: 2693003, member: 6492&quot;]Howdy folks,</p><p><br /></p><p>Silver has always worked for me.&nbsp; Greater leverage all across the spectrum - both bullion and mining stocks.&nbsp; In the Hunt Bros bull, gold appreciated ~350% while silver went off for over 1200%.</p><p><br /></p><p>Same/same in the great bull market from 2002 to 2011. Silver again went from around $4 to around $45.&nbsp; The mining stocks went even more crazy.&nbsp; That&#039;s where the nutzoid action is but is also where you can make a killing in a running bull market.&nbsp; I bought Silver Wheaton SLW between $2 and $3 and it went to $43. </p><p><br /></p><p>As for using the GSR, the best method I&#039;ve heard of is to purchase both gold and silver, but in the actual ratio.&nbsp; Then you periodically rebalance as dictated by changes in the GSR.</p><p><br /></p><p>For example,&nbsp; the GSR right now is just under 70/1.&nbsp; Ergo, for every one ounce of gold you need to stash 70 of silver (smaller budgets please divide as needed).&nbsp; If the ratio changes, I&#039;d change my purchasing mix but would not change my existing stash - too expensive and not really necessary. You can vary it over time by adjusting your purchases.&nbsp;&nbsp; </p><p><br /></p><p>In other words, it&#039;s a useful metric but don&#039;t go crazy.&nbsp; The same can be said about the gold/XAU ratio (14.7 as I write).&nbsp; Before the bullion ETFs, +- 5.0 was the decision point between favoring bullion vs. mining stocks.&nbsp; Well, according to this ratio you should put your mortgage into the miners.&nbsp; feh.&nbsp; I don&#039;t think so.&nbsp; I don&#039;t know if it&#039;s been recalibrated since the ETF&#039;s came along, but I&#039;d think it was still high and pointing to overweighting the mining stocks relative to bullion.&nbsp; And again, this is all on the margin.</p><p><br /></p><p>Take your time, be prudent and it&#039;ll all be good.</p><p><br /></p><p>and so it goes,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in