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<p>[QUOTE="harrync, post: 4862024, member: 58588"]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.[/QUOTE]</p><p><br /></p>
[QUOTE="harrync, post: 4862024, member: 58588"]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.[/QUOTE]
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TRYING TO "Play the GSR" -- HORRIBLE IDEA
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