TRYING TO "Play the GSR" -- HORRIBLE IDEA

Discussion in 'Bullion Investing' started by goldcollector, Apr 17, 2017.

  1. InfleXion

    InfleXion Wealth Preserver

    The GSR is a great reference for whether my dollars should be buying gold (overpriced) or silver (undervalued). Swapping the metal itself is only prudent at major extremes. We are amid one now if you want to trade gold for silver, but I need to see 30:1 again before I'll think about trading silver for gold. The mining output ratio is 8:1 and the historic ratio is 15-20:1 so I do anticipate a nice swing downward at some point if markets ever regain sanity which is not a given. Since silver usually moves where gold does but at a faster pitch, a dropping GSR implies rising prices as silver rises faster than gold. With deflation on the immediate horizon, it may take more time for all the new money printing to kick in. I'm eyeballing 2021 as the year for new highs, but see more downside this year. Not that you'll find better deals as the physical market is going gangbusters because of all the money printing.
     
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  3. goldcollector

    goldcollector Member

    19 times face for 90%. Lol. You know they are only doing these because there are so many silvdiots who fall for it.
     
  4. goldcollector

    goldcollector Member

    Well the GSR has fallen all the way down to 111. LMAO. I knew there would be a correction and it will likely continue down to 100-103. Silver can't be touched right now as there are so many silvdiots actually paying double spot for ASES when they weren't even going for $30 before the big drop in spot. I will never understand why silvidiots continue to shoot themselves in the foot over and over and over.......


    GSR 111
    Still waiting
     
  5. goldcollector

    goldcollector Member

    Since the day I started this thread 3 years ago yesterday ...

    Gold UP almost $400

    Silver DOWN $4.05

    GSR UP 70%. ( 68 to 111 )

    Lol
     
  6. goldcollector

    goldcollector Member

    GSR 118

    STILL WAITING
     
  7. goldcollector

    goldcollector Member

    Silver continues to get MURDERED. Can't even hold $15. While Gold tests new all time highs as it pulls within 10%.

    GSR 116

    Still Waiting
     
  8. goldcollector

    goldcollector Member

    GSR DOWN TO 100

    STILL WAITING
     
  9. goldcollector

    goldcollector Member

    Hmmm. Who knew
     
  10. Mr Roots

    Mr Roots Underneath The Bridge

    How big of point swings does there need to be to play the ratio..?
     
  11. Mr Roots

    Mr Roots Underneath The Bridge

    I guess my question will go yet again unanswered.
     
  12. -jeffB

    -jeffB Greshams LEO Supporter

    That's because there is no answer. I mean, you could've made money by swapping gold for silver when the ratio was 120-something, and then swapping back when it fell back to 100 -- except that when silver was at its lowest, you couldn't buy it at that price.

    The spot prices of gold and silver aren't that meaningful to most of us, because we can't buy or sell at those prices; we have to sell at a lower price and/or pay fees, or buy at a higher price and/or pay fees. If you're trying to "swap" gold and silver, you're effectively losing on both ends, because (at least in the venues I can use) you have to sell one and then buy the other.
     
  13. Mr Roots

    Mr Roots Underneath The Bridge

    I understand.....the notion that you can’t make money of of the gold silver ratio when the ratio continues to trend up is false.
     
  14. goldcollector

    goldcollector Member

    Yes there was massive gains to be made by trading silver for Gold. I never said that wasn't the case. In the long run Gold always wins. The problem is they are always pounding the "trade your gold for silver" line. Whether the GSR is in the 30s, 40s,50s, 60s whatever, they are always saying trade gold for silver. That is always a losing play. To think the GSR was just 38 a few years ago and it's ~ 104 right now. To think that since the day this thread started, Gold is up ~ $ 600 and silver is actually DOWN. Under normal circumstances I think it would be a great move to trade silver for Gold but right now I wouldn't as 104 is pretty high. However at the start of this thread it was 68 that was a great time. We will never see 68 again. Never.
     
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