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 Replies: 20 / Views: 3,536 |
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Pillar of the Community
United States
2049 Posts |
I buy regardless of price at certain times of the year. Over the last 2 years, I have been traveling to coin shows that are within a 2-hour drive. The prices are slightly better than the LCS and the sales tax is already included in the purchase price. Plus, the selection, experience, and atmosphere are better than going to the same LCS over and over. Most of my buying is in the first 4 months of the year as I put my tax return money and annual bonus towards coins. This is the time period of the best coin shows in the state generally, but I will buy here and there throughout the year as the budget allows.
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Moderator
 United States
189340 Posts |
Quote:
If I may contribute, here's a technical chart of people trying to predict future spot prices  |
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Pillar of the Community
United States
2365 Posts |
That's more trouble than it's worth! I like the realities of gold and silver values as the markets are just too volatile for dinking around with ratios.
If that's your thing though - go for it.
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Pillar of the Community
United States
2860 Posts |
The $GLD is closing in on 52 week highs & the banking issues we're witnessing, continuing fed rate hikes & a '23/'24 recession.... those will be the predominant catalysts which push gold & silver to fresh 52 week highs & will continue making higher highs into years end, IMO.
Edited by coin rejector
03/23/2023 3:19 pm
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Moderator
United States
54283 Posts |
Gold is not currently linked to the price of silver.
Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Pillar of the Community
 United States
533 Posts |
That's like saying gold isn't linked to the value of the dollar. Technically true but over time gold rises when the dollar falls and falls when it rises
Except for some blips silver tends to follow gold. Chart it out over time
Edited by jaxenro
03/23/2023 7:22 pm
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Pillar of the Community
United States
3343 Posts |
I don't track it. Are you a trader or a stacker? IMO ratio is a trader play for the relatively short term, holding both metals. Sell gold to buy silver when the ratio is high, and vice versa when the ratio is low. "From around the end of 2008 to the middle of 2011, the gold-silver ratio declined from approximately 80:1 to around 45:1. During that period, the price of silver rose from around $11 an ounce to approximately $30 an ounce. The price of gold rose from approximately $850 an ounce to $1,400 an ounce. A 2008 buy of 80 ounces of silver against a short sell of one ounce of gold would have resulted in a profit of $1,520 in silver against a loss of $550 in gold, for a net profit of $970." https://www.investopedia.com/articl...er-ratio.asp"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
03/23/2023 10:37 pm
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Pillar of the Community
United States
533 Posts |
"Are you a trader or a stacker?"
I didn't realize the two were mutually exclusive. I own both physical gold/silver and ETF's. I have no problem turning a profit trading and using it to buy physical with. I also trade in 1970's and 1980's luxury cars and funnel the profits into stacking. My goal is to increase my holdings using different legal means to fund that goal
Hypothetically if I have $2,000 to spend on stacking this month do I buy silver or gold? The ratio is one factor I look at as it transcends price. If it is above 80 I am more likely to buy silver, if below 60 I would look at gold more. But other factors come into play also like premiums.
My goal is to generate income to fund stacking and then spend that income in the most efficient manner
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Pillar of the Community
United States
3343 Posts |
I am only a stacker, and don't hold enough silver to use the ratio strategy. I see the logic of it though. If I sell an ounce of gold at 80 ratio I get 80 ounces of silver. When the ratio hits 40 I sell the silver and buy 2 ounces of gold. The size of my gold stack is now two ounces, and I wait for the ratio to rise again to sell the gold. It might take years or it might take weeks per iteration, but the net long term effect is a bigger stack.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
03/24/2023 1:21 pm
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Pillar of the Community
United States
533 Posts |
To me it is a factor. I try to buy consistently and the ratio helps determine which is a better buy at the moment but it is just one factor of many
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Pillar of the Community
United States
2246 Posts |
@jaxenro, Thanks for explaining the ratio, that you use it as part of your buying strategy. I just try to find the best deals, sales, buy what I like, keep a document of my purchases, how much I spent, a total of how much gold/silver I have.
Edited by livingwater
03/25/2023 08:39 am
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Moderator
United States
54283 Posts |
Quote:
That's like saying gold isn't linked to the value of the dollar. Technically true but over time gold rises when the dollar falls and falls when it rises The tide is linked to the orbit of the moon. The price of a fixed rate bond is linked to current interest rates. Over time, most things rise when the dollar falls. But my statement was that the price of silver is not linked to the price of gold. They may both increase or decrease at the same time, but not in any fixed ratio. The price of silver and gold are not directly related to each other (nor to platinum, palladium, titanium, or anything else). Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Pillar of the Community
United States
2365 Posts |
Quote:
But my statement was that the price of silver is not linked to the price of gold. They may both increase or decrease at the same time, but not in any fixed ratio. The price of silver and gold are not directly related to each other (nor to platinum, palladium, titanium, or anything else). True!  |
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Pillar of the Community
United States
3343 Posts |
The ratio strategy has nothing to do with any linkage between the price of gold and silver. It has to do with buying one metal over the other preferentially based on the ratio, which is changing randomly all the time in the short term. We tend to do this in our heads: if silver is at $40 per ounce and gold at $1200 (30 ratio) my buying preference is for gold. If silver is at $20 and gold is at $2000 (100 ratio) my buying preference is for silver. Over a period of 10 years, both events occur. This isn't rocket science.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Pillar of the Community
United States
533 Posts |
True I rarely actually look at the ratio I just do it naturally at a glance based on spot prices
And yes gold and silver are not artificially linked like they used to be.
So I will end it there. It's a factor I like at either overtly or just by comparison
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Replies: 20 / Views: 3,536 |
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First Page
Posted 03/23/2023 09:52 am
