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<p>[QUOTE=&quot;Truble, post: 2612672, member: 80662&quot;]yes, i have done well trading on the ratio, its a slower process since ratio moves at a snails pace. Right now I am buying silver as I can. the Ratio of 70:1, means silver is under valued to gold. Once the ratio gets in the 45:1 range I will swap. I have almost tripled my original silver holdings since 2008 without any additional investment. Once it drops to the 30-45 range I start buying gold. as the ratio creeps back over 45:1 I will start considering a reverse swap again this time the Gold for Silver.</p><p>When you look at the math its kinda cool, I will keep the math simple using only 70 and 30 as the ratio swings.</p><p><br /></p><p>Initial Investment:Your Starting portfolio looks like this 90oz Silver, 0oz Gold</p><p>So if you start with 90 oz of Silver when the ratio is 70:1, and the ratio then moves to 30:1 (it will take some time) but sell the 90oz of silver for 3 ounces of Gold.</p><p>Now your portfolio looks like this</p><p><b>After Trade 1</b>:0oz Silver 3oz Gold</p><p>As the ratio swings back to 70:1, you reverse the trade, sell the Gold and buy silver</p><p>Now your portfolio looks like this</p><p><b>After Trade 2:</b> 210oz silver, 0oz Gold.</p><p>other than a small premium on the sale and purchase you original investment of silver or gold has increase without significant additional investment.</p><p>Take it a few more trades and watch what happens</p><p><b>Trade 3:</b> 0oz Silver, 7oz Gold</p><p><b>Trade 4:</b> 490oz Silver, 0oz Gold</p><p><b>Trade 5:</b> 0oz Silver, 16.3oz Gold</p><p><b>Trade 6:</b> 1143.33oz silver, 0oz Gold</p><p><br /></p><p>Not all results are so clean, and I have only had the swing to 30 once, but most of my trades have occurred in the 45-60 range. it been a while since I have swapped because the ration is staying in the 70+ range. So all I am doing now is buying silver on the ratio, not the price.</p><p><br /></p><p>This is a long term trade process (multiple years), ratios have been stuck in the upper 60s to close 80 range for sometime. When it is this high don&#039;t buy Gold its a silver buyers market, just buy silver physical not the crap ETFs. when the ratio drops below your specific range sell your silver, buy Gold. It has taken me almost eight years to grow my silver portfolio, so be patient.[/QUOTE]</p><p><br /></p>

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