Swapping part of Silver stack for Gold

[tallyhojim]

After watching one of those Backyard videos, seriously contemplating swapping some of my Silver for Gold. I've got 100 ounces and I think it would be a wise decision to offset some of that Silver towards a Gold ratio. Has anyone else ever done something like this? And if so, how did you work out how much Silver to swap/sell?

[KDave]

Ebay sell for £1 listings are good to shift silver. 

My stack is 70% gold, 20% silver 10% platinum group. I have my reasons for this, mainly my interpretation/understanding of the metals. 

There is a strong case to be made not to sell any silver and instead accumulate gold until you reach your preferred balance.

[blindguy]

A stack should have all three metals. I am way heavier in silver then gold or platium at this time. I think the up side for silver is greater then the other metals. But to be safe I buy all three each month.  Jim

[mr-dead]

Doesn't seem logical switching silver into gold when the GSR is so high.

The theory is you buy silver now then when the ratio closes you switch from silver into gold so you end up with more gold for your money.

[Notafront4adragon]

The ratio is suggesting either gold is too expensive or silver is too cheap. When it's high like this, theory says you should almost exclusively be buying silver. Then as it comes back to supposed normal levels swap silver/sell it for gold. 

In theory. 

Personally in regards to the GSR I lean towards gold is too expensive and not silver is very cheap. I also find silver to be super volatile and wouldn't have it making up more than 10% by value of my PM portfolio. I do collect some silver coins but don't regard these as an investment like the bullion and gold. 

[Pete]

GSR is way too high to swap and 100oz ain't a big stack so start buying gold if you have the fiat available and hold on to your silver.
If I was you however I would be accumulating more silver and wait until the GSR drops - if ever.
Don't overlook also that once we are out of the EU you will be paying the full 20% VAT on new silver, so effectively costing a lot more than today.
Will not affect the GSR ratio as VAT is excluded.

[RoughDog]

4 hours ago, Notafront4adragon said:

The ratio is suggesting either gold is too expensive or silver is too cheap. When it's high like this, theory says you should almost exclusively be buying silver. Then as it comes back to supposed normal levels swap silver/sell it for gold. 

In theory. 

Personally in regards to the GSR I lean towards gold is too expensive and not silver is very cheap. I also find silver to be super volatile and wouldn't have it making up more than 10% by value of my PM portfolio. I do collect some silver coins but don't regard these as an investment like the bullion and gold. 

I have a theory that the reason gold isn't volatile is maybe, plenty of wealthy people have purchased it as part of their portfolio and have no intentions to sell it.

If someone is wealthy they are unlikely to find themselves in a position where they are forced to sell.

Personally I prefer gold.

[Notafront4adragon]

4 minutes ago, RoughDog said:

I have a theory that the reason gold isn't volatile is maybe, plenty of wealthy people have purchased it as part of their portfolio and have no intentions to sell it.

If someone is wealthy they are unlikely to find themselves in a position where they are forced to sell.

Personally I prefer gold.

Sounds legit. Some of them have so much rather than sell it, they'd prefer to make some sorta special hat. 

If gold works for them and has done so for ages, I'm gonna do the same. 

[RoughDog]

Sounds like something from the x-files.

Was it to stop the aliens reading thoughts?

[Abyss]

Swapping Silver for Gold and vice-versa I have always thought this was only practical if you were holding paper contacts via ETFs/Futures or hold PM position via vault and have the ability to add/sell PMs with minimal amount of costs. When trying achieve same strategy with physical metals in your possession losing a lot of percentage value in the stack because of premiums/cost and time involved in selling/postage. When comes to physical I stack both and hold for the very long term position (hedge/insurance policy). Nothing wrong with playing GSR use it part analysis of PM prices in conjunction with other charts but I don't personally look to trade between the PMs. More efficient ways play GSR ratio than physical PMs IMHO.

[Downs523]

I would say it is very easy to play the GSR game, I did it back in 2011/2012 where the price for price ratio that I paid was approx 1:28. I switched all my silver to gold. I'm hoping we see those days again soon as I'm 99% into silver now

[DarkChameleon]

If you don't need the cash desperately then the best way is to reduce your silver purchasing and increase your gold unail you reach your ratio goal....the ideal ratio is what the ratio is now, so your doubling your investment but keeping the ratio going, one falls one rises and both should never cross more then 20% of your overall investments including pension...I see too many people at the shops selling their gold and silver or breaking up large ingots into junk silver or smaller gold coins...each and every deal cuts their stash by at least10% when changing or selling, sometimes even more...look at fleabay for the best price to spot value, above spot or below then you have the ideal type to own whether ingot, frsctional, large ingots, etc...invest wisely and don't get caught buying a premium that won't pass on, new coins with no history of holding their value or making a premium when being sold...sometimes you can make more from generics then low mintage coins.

[ChrisF]

Quote

I also find silver to be super volatile and wouldn't have it making up more than 10% by value of my PM portfolio.

I find this may be a reason someone would want to invest heavily into silver.  Especially if you can afford to play the waiting game.  

[dicker]

I love that we think the best way to redress an imbalance is to buy more gold rather than sell anything.

Heres to all of us with a similar mindset!

[RoughDog]

Yep keep the silver and get saving every wee penny 💰 for a big OZ of gold. 😎

Recommend: brit, beastie or krugerrand. 

 

[blindguy]

When I was first married and young, in the late 1970s, I did not have the cash to buy silver and gold so I got a second job. First job paid the bills and the second job bought the gold and silver. It is hard at first but it is worth it!   Jim