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 Replies: 14 / Views: 5,008 |
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Pillar of the Community
United Kingdom
616 Posts |
I can see reasons why people prefer silver to gold but isn't there a point where you need to convert some of your silver stack to a gold stack just because of the weight and size difference between silver and gold?
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Pillar of the Community
United States
2120 Posts |
Considering that Gold and silver are not the same commodity, and do not behave the same, no.
Silver still can hold a large amount of wealth in a relatively small amount of volume. It's true that you can hold more with less in gold, but if you believe silver will outperform gold, then you certainly want silver.
It all comes back to that magic word, diversification. If you have so much physical silver you have nowhere else to store it (good problems to have), then perhaps it's time to buy some gold to round out your holdings.
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Pillar of the Community
 United Kingdom
616 Posts |
Correct me if my calculation is wrong but $100,000 at $30/oz. would be almost 278 pounds which would be difficult to store and transport. Gold should be a bout a 50th of that and be denser take up even less space. That is why I was asking.
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Bedrock of the Community
Australia
21788 Posts |
Diversification is the operative word here. Just consider the total changeover costs to make such a move worthwhile.
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Rest in Peace
United States
4849 Posts |
If you are storing metals in an SDB, then I can certainly see the benefit of gold over silver. It is also easier to move a lot of value just by having it on your person, though it is unlikely to be in that situation. If I had 278 lbs. of silver, I would definitely consider converting to gold, as long as you don't have to pay a large premium to convert.
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Bedrock of the Community
13014 Posts |
Youd be surprised how much of that could fit in a large bag. A single closet or corner of the garage would store all that. Transporting it all wouldnt be a fun day though
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Valued Member
United States
404 Posts |
Wouldn't this be like converting my facebook stock to apple stock just to reduce the amount of shares I have?
Aren't there 16 oz in a lb? So 100k of silver should weigh approx. 208 lbs.
I myself believe there is a better chance of silver doubling/tripling in price than gold. So even though it may take up more room/harder to relocate/grab-n-go, I would deal with it.
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Pillar of the Community
United States
3184 Posts |
you stack both so you don't have to worry about converting
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Bedrock of the Community
13014 Posts |
Quote:
Wouldn't this be like converting my facebook stock to apple stock just to reduce the amount of shares I have? No because that actually would be a financially sound decision not a size issue  |
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Pillar of the Community
United Kingdom
616 Posts |
@akane -- If I am understanding what I have read correctly and I may not, while there are 16 ounces in a pound there are only 12 troy ounces to a troy pound. If I understand correctly an ounce is 28.35 grams and a troy ounce is 31.1. So I divided by 12 instead of 16 to calculate weight. I listed weight in troy pounds because I didn't do a pure grams conversion, I also assume all silver was .9999.
Edited by starbuxinvestor
08/27/2012 1:10 pm
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Pillar of the Community
United Kingdom
616 Posts |
I would like to point out I said some of your silver not all of your silver.
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Valued Member
United States
223 Posts |
Right now is not a good gold-to-silver ratio to be doing any converting, IMHO. We are currently at 53.8 to 1. If and when the ratio were to move below 40 to 1, I might consider converting some of my silver to gold.
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Valued Member
United States
103 Posts |
There are 14.58 Troy ounces to a regular pound.
So at 30dollar silver you would need 3333.33 ounces in $100,000 divided by 14.58( t oz in a pound) which would be about 229 pounds
Where are my nerd glasses again?
Edit for phone typo
Edited by lukemarshall
08/27/2012 5:28 pm
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Pillar of the Community
United States
759 Posts |
Well, the ghost of Ted Binion says no. I agree.
While there may be other reasons to consider converting, doing so for size and weight issues alone shouldn't even be on the list, IMO. If you believe gold will outperform silver or the storage costs associated with silver reduce it's expected return under gold's, conversion costs considered, that's a different story.
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Pillar of the Community
United States
4008 Posts |
Quote:
Right now is not a good gold-to-silver ratio to be doing any converting, IMHO.  Each of us would likely come up with a number for the G/S ratio wherein we would convert one to the other in an effort to maximize our ounces and, hopefully, our total wealth. Eventually, the silver price may reach its current mined ratio with gold of about 9.3 to 1 but who knows how long it would take to get there; could be several decades or it could be sooner. We do know that silver is much more useful than gold in terms of manufacturing, that silver is mostly lost when used, that the ratio of silver ozs. mined to gold ozs. mined is falling with time, and that there is much more gold above ground than silver. If one were to look far enough into the future, one might see a time when silver was actually more expensive than gold, although that is not likely for a very long time to come. As to the original question... yes, there can come a time when someone who holds only gold or silver might want to sell some and purchase the other metal. It could also be that a person's needs or outlook changes and that requires them to make such a change. Portability and storage volume could be substantial factors in this decision if it seems likely that they will have to "bug out" at some point or put their collection in a safety deposit box. Moving or storing 1,000 oz. of silver would be more difficult in most situations than it would be with 20 oz. of gold. |
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Replies: 14 / Views: 5,008 |
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Posted 08/27/2012 10:20 am
