TRYING TO "Play the GSR" -- HORRIBLE IDEA

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

  1. goldcollector

    goldcollector Member

    Silver tanking bad. Probably going back to the teens soon. I hope Platinum does better. I know Gold will.

    GSR 80

    STILL WAITING
     
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  3. goldcollector

    goldcollector Member

    When Silver starts tanking, the silver crowd disappears quick. I love it​
     
  4. goldcollector

    goldcollector Member

    Screenshot_20200903-224425.png

    Familiar. All too familiar
     
  5. Mr Roots

    Mr Roots Underneath The Bridge

    I don’t think many of us care about the daily volatility.

    Year to date mean more to me.
     
  6. goldcollector

    goldcollector Member

    And you will be no where to be found when your "GSR IN THE 50S" Prediction comes no where close.

    And that Robert Kiyosaki guy that's the same guy who was pumping real estate right before the great recession. Lol.
     
  7. goldcollector

    goldcollector Member

    GSR 81

    STILL WAITING
     
  8. harrync

    harrync Active Member

    There is a reasonably intelligent way to play the GSR - it's called portfolio balancing. You set aside a sum to put in PMs, and pick a ratio of the dollar amounts you want in each metal - say 60% gold, 40% silver. Then you pick an allowable variance - the amount the ratio can change before you rebalance - say, 5%. [The bigger the allowable variance, the less often you have to rebalance.] If your portfolio gets up to 65% gold, you sell enough gold and buy enough silver to get it back to 60%. Or if silver gets up to 45% of your portfolio, sell silver and buy gold. This is done all the time with stocks and bonds; there are even mutual funds that will do it for you. Of course, you might have done better being 100% in gold - or maybe, should have been 100% in silver. But as the saying goes "Prediction very difficult, especially with regard to the future." Portfolio balancing eliminates the need to predict; you are always buying [relatively] low, selling [relatively] high. Note that although you are in effect playing the GSR, you really never need to pay any attention to what it actually is.
     
  9. harrync

    harrync Active Member

    There is a reasonably intelligent way to play the GSR - it's called portfolio balancing.

    I probably should have noted that transaction costs make this impractical for small time investors in PMs. I tend to forget that not everybody deals in 1000 oz silver future contracts. Maybe some sharp Wall Street guy will start a PM fund which automatically rebalances; that would make it practical for the small guy.
     
  10. goldcollector

    goldcollector Member

    So if ratio went up to 65% you would sell enough gold to get it down to 60%, while at the same time buying more Gold the next time you add to the portfolio. Selling and buying at the same time can't be a good idea. Well let me preface that since everyone in this board always buys way under spot and sells way over. And still aren't rich. Go figure that one. Still it seems the smarter thing to do would just buy 100% of whichever metal fell below your allowable variance until you get back to 60/40 or whatever. But this that you are talking about here is something different than playing the GSR.

    GSR 81
    STILL WAITING
     
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