Discussion in 'Bullion Investing' started by goldcollector, Apr 17, 2017.
How is that GSR of 40-45 working out for you guys ???
Like I said in OP, GSR of 55 NEVER again.
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gold is the end goal for me. What that means is I convert silver into gold when the ratio falls into a favorable range but I WILL NOT exchange gold for silver because I am trying to accumulate more gold in the long run. Silver and the GSR are just a means to an end for me. I use the silver to help get more gold when the ratio goes down. Right now, I am buying a lot more silver because I think it is a relative value compared to gold and it is priced below $20 an ounce which I can afford. If I am wrong, who cares. I am just going to turn it into gold at some point in the future.
So why don't I just buy gold in the first place? Because it is expensive and the premiums on the 1/10 ounce gold suck. I can buy singles or a roll of silver eagles when they go on sale and convert it to 1 ounce gold when I get enough ounces. I can't swing buying an ounce of gold every month but I can swing buying silver here and there when it goes on sale.
The other reason I like gold long term is that it takes up way less space and weighs so much less. Silver is really tough to carry around in large quantities where as a backpack full of gold is worth a lot of money. My safe deposit box gets really heavy when I fill it with silver. I just traded a bunch of silver for gold at a show because I was sick of how heavy it was and I ran out of room in my safe deposit box.
Any dealer, on any transaction, will insist on collecting a premium. That's how they make a profit. If you buy silver, then swap that silver for gold, you're paying double.
If the dollar were on a constant, predictable decline against precious metals, I could see buying whatever PM you can, and then shuffling the distribution later. But that "constant, predictable decline" is pretty much the opposite of what we've seen since 2011.
Now now Jeff, you don't want to confuse a PM true believer with facts. It just weirds them out and they can't "deal". After all, gold is a religion.
The story is told of the power of gold
And its lure on the unsuspecting
It glitters and shines, it badgers and blinds
And constantly needs protecting
Balance the cost of the soul you lost
With the dreams you lightly sold
Are you under the power of gold?
disprove (except in hindsight).
This comes out to $14.63 an ounce with the discount. I also bought it with my credit card so I get cash back as well and brings it down to $14.48 an ounce on generic silver. I have no problem trading this for spot with the dealers I work with. Right now the Kitco bid is at $16.60 which means I am going to make about $2 on this deal. I can't find a deal this good on gold anywhere especially on the 1/10 ounce. If I could, I would just buy the 1/10 ounce gold right now.
I work really hard to find great deals on silver where the premiums are not going to be an issue. The above example is not the norm. Normally, I can get silver deals on eBay or online from one of the big sellers and then take them to a show and actually don't lose on the premiums at all.
The Saint Gaudens I have in my avatar was a trade a few weeks ago at a show. I traded silver for that gold coin and got a great deal. It was silver that I had accumulated over the past year or so when I could buy it on sale. I had a 10 ounce bar, a 5 ounce bar, a 5 ounce ATB, silver maple leafs, silver eagles, silver Britannia's, some 90%, Morgan dollars and even two 1 ounce Engelhard bars. They were all bought online when the premium was pretty much non-existent and on sale during the dips. I am guessing the average price was around $16 to $17 on the silver and I traded it when silver was around $16.70 an ounce. This keeps me interested in the hobby and I have fun searching for deals and I love trading at shows.
Call me crazy but it works for me and it is fun.
That isn't necessarily true. I remember in 1980 there were car dealers that would sell a brand new car for $250. 250 Morgan or Peace dollars would buy a brand new car. Ikes and SBAs wouldn't work, and neither would FRNs. And no need to transfer from Silver to FRNs was necessary.
now you're speaking my language.
I still think that in general it would be more difficult to come out ahead by buying silver first and then swapping it for gold -- but if you've got the promotions and cooperative dealers to make it work, more power to you!
Looking at it from the $ perspective is really the only thing that counts. You cannot pay your rent with Au/Ag
True in a sense, but my intentions are not short term as a means to pay my mortgage, any more than pulling money from my 401K would be to pay my mortgage. That's why I said it is a long term play to bounce back and forth to increasing my AuAg ounce holdings. My last swap was December of 2014. Since then I haven't swapped because the ratio has been so high. It will never go to 1:16 as pundits will try and tell you. But a 1:45-50 is may be possible in the next couple of years. And I'll swap my silver for gold then, if it doesn't, oh well my position with Silver is still in my hands.
But Silver and gold purchases should never be your primary investment tool, you need a well balanced portfolio for whatever your goals are.
Maybe I am just one of the lucky ones were it has worked to my advantage, and swapped both ways at the right time.
Here's the thing, though - the GSR needs to get closer to normal by gold going DOWN, rather than silver going UP.
Short Gold Kurt!
Since I never use credit to invest, I'm about as "short" on gold as I can get.
And before the moderators remove this because it is an offer to trade, let me assure you it really is not. It is an attempt to call the bluff of those GSR naysayers. However, if someone is inclined to take me up on it I will accept, simply because I offered.
I will trade one or more 1 oz AGEs for ASEs at the going GSR at the time it is accepted. That means I will trade you a one ounce AGE for 82 one ounce ASEs (at the rate when I posted this). As the rate changes the offer is open as long as the GSR is above 75.
I doubt that the silver trouncing will continue at the amazing rate it has during the year this thread has been up though so I wouldn't expect 100 until 2020 or 2021 though. But the GSR will continue to expand just as it always has over any reasonable period of time.
To think it was about 16 in 1980 then around 35-40 from 1990-2000 then 50 then 60 then 70 now 80. The silver crowd are just experts at being wrong.
We are almost at 82 now. Good luck waiting for the GSR to return to 55. If you live to be 250 years old you will never see it.
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