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Gold to Silver ratio?? WTHeck is best???
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<p>[QUOTE="-jeffB, post: 2438744, member: 27832"]All this advice about trading gold for silver makes two basic mistakes:</p><p><br /></p><p>1) It assumes that the "real" or "natural" or "long-term" ratio is somewhere familiar -- in the chart above, 50:1. That's not a sure thing. For the reasons [USER=26302]@medoraman[/USER] mentioned, and others, the ratio may stay much higher until all of our grandchildren (yet unborn in my case) are dust. Or both prices may shoot through the roof (like in 2011/2012), or fall through the floor, in which case it hardly matters which you're holding.</p><p><br /></p><p>2) In the real world, "trading gold for silver" usually means selling gold at a dealer's buy price, and buying silver at a dealer's sell price. This is <i>great</i> for dealers -- swap early, swap often! -- but not so much for someone trying to "preserve wealth". Every time you trade, you're effectively paying a commission to your counterparty. Better, in my opinion, to hold what you've got -- or to adjust your ratio by just buying silver or selling gold, or vice-versa, depending on what adjustment you want.[/QUOTE]</p><p><br /></p>
[QUOTE="-jeffB, post: 2438744, member: 27832"]All this advice about trading gold for silver makes two basic mistakes: 1) It assumes that the "real" or "natural" or "long-term" ratio is somewhere familiar -- in the chart above, 50:1. That's not a sure thing. For the reasons [USER=26302]@medoraman[/USER] mentioned, and others, the ratio may stay much higher until all of our grandchildren (yet unborn in my case) are dust. Or both prices may shoot through the roof (like in 2011/2012), or fall through the floor, in which case it hardly matters which you're holding. 2) In the real world, "trading gold for silver" usually means selling gold at a dealer's buy price, and buying silver at a dealer's sell price. This is [I]great[/I] for dealers -- swap early, swap often! -- but not so much for someone trying to "preserve wealth". Every time you trade, you're effectively paying a commission to your counterparty. Better, in my opinion, to hold what you've got -- or to adjust your ratio by just buying silver or selling gold, or vice-versa, depending on what adjustment you want.[/QUOTE]
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Gold to Silver ratio?? WTHeck is best???
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