Gold/Silver ratio?

[austack]

I am starting to stack again slowly, originally collected mostly sovs only but I want to buy for the long run and now and then buy coins to grade etc, anyway at what ratio should I buy silver/gold or what do you guys do? my budget per month is around £300 due to me depositing cash into my Lifetime ISA.

[Provvidenza]

I'm aiming for 1/100, 1 oz of gold to every 100 oz of silver, like you I have a limited budget every month (a combination of earnings and savings), so I have been buying 1/10 Britannias from  royal mint bullion. I know this is not the most cost effective way to buy gold, but at this time I'd rather have physical metal in my hand than wait and risk a price spike.

[JunkBond]

I have just been buying gold, every time I come close to buying some more Eagles I end up with another half sov.

[austack]

Hmm I was thinking of buying a full sovereign and something like 2 1oz Silver coins.

[JunkBond]

If I had unlimited funds I think I would have a pile of silver but I favour gold and can't really justify two mistresses.

[sixgun]

My ratio is 150 to one but i am a silver nut.

[CoinFinders]

I commend just about "any method of stacking."  Every stacker is a bit different with differing resources and differing priorities.  I have a friend who buys nothing but sealed "monster boxes" of US Silver Eagles.  Another friend buys 1-2-3 silver rounds a month.   Both have sound strategies.  I have found that if you have a plan -- and then stick to the plan! -- you will be successful in the long run.  Priority #1:  buy the best you can afford.  Priority #2:  buy what you like.  Priority #3:  stay away from the too-good-to-be-true bullion deals ("Buy at our cost!"), or the "loss leader" types of deals from some dealers and bullion companies.   Many reputable bullion dealers (especially the big ones) will occasionally have a "blow out sale."  These are usually focused on a one-time-good-buy and then flipping to their clients -- these are the deals to seek out.  I recently bought a number of 1/4oz Maple Leafs with random dates, and paid 2% over spot for the buy.  Thanks from Scotty at CoinFinders.  www.coinfinders.com

[vand]

I have just been buying silver, every time I come close to buying a sov I end up with more Eagles.

This will change when the GSR itself moderates. I will split between both gold when it falls below the 70th percentile of its historical average (68), and then just primarily gold when falls below the 50th percentile (56). 

[Cornishfarmer]

@vand don’t really keep an eye on gold silver ratio but when you are on about swapping silver for gold when it changes..... do you expect silver to jump up, gold to fall back or just a mix of the 2?

[Goldmick]

I used to buy some silver but sold for gold and swapped some on here for gold. I just didn't get that same feeling about silver when I looked at my gold sovereign.s. I know that silver is a good buy at the moment so will buy a bit 

[Martlet]

With that sort of budget, i'd look to alternate between silver and gold each month, and not worry about ratios.

[vand]

4 hours ago, Cornishfarmer said:

@vand don’t really keep an eye on gold silver ratio but when you are on about swapping silver for gold when it changes..... do you expect silver to jump up, gold to fall back or just a mix of the 2?

The most likely scenario is that both go up in fiat terms with silver outperforming gold.

But who cares - I am taking about the ratio itself, not the price in fiat denominated values. I see my precious metals as a way of preserving purchasing power and eventually being able to use them to acquire more productive assets when the opportunities arise. Fiat money in and of itself is not value producing, its only (currently) a means to acquire something which is.

[RacerCool]

My plan doesn't have a ratio involved.  Ratios are for puny accountants.  Hulk stack mountains of heavy metal!! 

I've only recently revamped and rebudgeted my plan, and for silver it's going to be one tube of 1 ounce Eagles per month for a year.  And whatever other shiny thing catches my eye.  

For gold, I have a bunch of air-tite capsules in 14mm, 16mm, and 19mm.  The goal here is to fill up the 14mm with Mexican 2 peso coins, 16mm with 1/10 ounce Eagles (or other 1/10 gold), the 19mm with 5 peso coins.  Beyond that, I'll get the occasional Sovereign, 20 Franc, or whatever other thing I see for sale for a good price.  

Once those goals are reached, I'll re-evaluate.

[Abyss]

Just thinking that the silver to gold ratio getting almost back to it all time highs and right now great time to load up on silver as historically in the past when the ratio been this high always signaled bottom for both gold and silver.

Seen the following YouTube video. Please note I not promoting anyone but I do follow technical analysis and I can now see ratio breaking above 80/90/100.

 

[MancunianStacker]

Almost at 10 year high!

Backing up the truck yet?

Intersting how last time it quickly dropped down to 40:1. Anything could happen though????

[Martlet]

29 minutes ago, MancunianStacker said:

Almost at 10 year high!

Backing up the truck yet?

Intersting how last time it quickly dropped down to 40:1. Anything could happen though????

 

Yeah, that graph is significantly wrong.  The first step down covers 2 years, then there 6 months data for 2011, then a 2 year jump back to 62 level.  Can see this in the website version where dates for each data point are shown.  The direction remains the same, but the time period is very different. 

[Lowlow]

At the moment I'm only buying silver, but if the silver/gold ratio reverts back to something like 40-1 or 30-1, then I'd convert silver over to gold.  Silver and gold have a fiat currency price, but they are also priced in other commodities such as oil, each other, etc, and as a pure trade when the gold/silver ratio gets out of whack like it is then I think it's best to buy the one that is relatively cheap compared to the other, with the intention of trading for the other in the long run.  Of course, that's all just my not so humble opinion, and for all any of us knows the ratio might keep rising to 200-1, 300-1, 500-1 ... past results are not a promise of future behavior.

[Uksilverstackers]

Just a gnats away from 85:1 in $ on this chart....