A question for the PM stackers

[DGW1949]

I've noticed of late that the silver-gold ratio is hovering around 69-70:1 .
It's occoured to me that this might be a good time to swap an ounce or two of gold for the appropreate amount of silver. Yeah, I know the risk, and I do remember how hard it was to come up with the $$ that my gold cost to start with....but still, being's how the present ratio is about 2X what it should be, it does seem like it might be a good move over the long run.

Whatcha think?

DGW

 

[Ale-8(1)]

Been giving some serious thought to the purchase of some Ag for just this reason . . .

;)

 

[stevemb]

I was thinkin' pastrami and mayo....LOL

 

[rugnelli]

DGW,
It does appear that a swap would be beneficial.
rugnelli

 

[powder smoke]

IIRC the ratio usually be closer to 30 to 1, I have been getting more the price and timing seems right.

As Recently of April 2011 it was 31.94 to 1, Silver will come up! ps

http://www.macrotrends.net/1441/gold-to-silver-ratio-historical-chart

 

[DGW1949]

IIRC the ratio usually be closer to 30 to 1, I have been getting more the price and timing seems right.

As Recently of April 2011 it was 31.94 to 1, Silver will come up! ps

http://www.macrotrends.net/1441/gold-to-silver-ratio-historical-chart

Yeah, I remember that.
I also remember thinking that if/when it got down to 30:1, I'd do a silver for gold swap....but as it turned out, it didn't, so I didn't. :roll: .
Yep, no doubt about it, greed is a terrible thing. I shoulda took the deal and run....but no, like an idiot, I was holding out over two measly pieces of silver.

Oh well, come to think of it....I never have been accused of having too many brains. :lol: .

DGW

 

[powder smoke]

If one could see into the future these decisions would be no brainers!
Trouble is we are all human. ps

 

[pyth0n]

PM = precious metals? Popular Mechanics?

 

[DGW1949]

Eh, they've been saying it'll go back to 20:1 any day now for years. People need to stop trying to play metals like it's the stock market.

Oh really?....and why is that?

If a guy traded some of his silver for gold @ 35:1 and later traded that same piece of gold for silver @ 65:1, he would have added 30 ounces of silver to his stack without spending a dime....and that same sort of a proccess can also work in reverse...and it works to one extent or another regardless of the exact ratio numbers.
Yeah, there is some risk involved there, but ya know what?...either way ya slice it or dice it, at the end of the day the guy will still have an X-number of PM's in his hand......which regardless of what color or size any particular one is....unlike paper, will might-near always buy what it's always bought.

I think that you'd understand this better if ya quit trying to value gold/silver in "dollars", and try to concentrate on "ounces" instead.....because therein lies their true value.
Simply put, "paper dollars" has little to with it.

Care to see my "twenty-five cent gasoline" anology (again)?....'cause it still works ya know. :lol: .

DGW

 

[Ale-8(1)]

I think that you'd understand this better if ya quit trying to value gold/silver in "dollars", and try to concentrate on "ounces" instead.....because therein lies their true value. Simply put, "paper dollars" has little to with it.DGW

Yes . . . yes indeed!

:mrgreen: :mrgreen: :mrgreen: :mrgreen:

 

[m657]

I lose track of the ups & downs....

the closest I can track this all, is from a long ago era where a month's wages was a few Gold coins, and a $20 gold piece bought a new Colt SAA....

 

[Ale-8(1)]

Well, I think a new Colt SAA goes for something like $1400 now, and gold is currently about $1200, down from about $1400 earlier this year.

Looks like things haven't changed too much.

;)

 

[DGW1949]

Well, I think a new Colt SAA goes for something like $1400 now, and gold is currently about $1200, down from about $1400 earlier this year.

Looks like things haven't changed too much.

;)

Yep, true that.....and gas is still a quarter a gallon....IF ya happen to have a real quarter. :lol: .

I would think that after being systematicaly robbed for all these years, the difference in real money and paper wouldn't be all that hard to see. Still though, it seems that most folks just can't seem to make the mental leap. :roll: .

DGW

 

[Ale-8(1)]

Well, I think a new Colt SAA goes for something like $1400 now, and gold is currently about $1200, down from about $1400 earlier this year.

Looks like things haven't changed too much.

;)

Yep, true that.....and gas is still a quarter a gallon....IF ya happen to have a real quarter. :lol: .

I would think that after being systematicaly robbed for all these years, the difference in real money and paper wouldn't be all that hard to see. Still though, it seems that most folks just can't seem to make the mental leap. :roll: .

DGW

Yep. Silver at $17 per ounce X 0.18 ounce per "real" quarter = $3.06.

Fill 'er up!

;)

 

[blume357]

never have seen the need for either... lead and powder seem a much better commodity to collect and invest in. :-)

 

[powder smoke]

It's all good Blume, I like ammo to :D
Beauty of it you collect what you like. ps

 

[DGW1949]

Eh, they've been saying it'll go back to 20:1 any day now for years. People need to stop trying to play metals like it's the stock market.

Oh really?....and why is that?

Because it reduces investment and commerce to a speculation game, that's why. If you're worried about the Dollar's collapse/devaluation, by all means buy metals or other hard assets. But trying to get something for nothing by timing markets and shifting bits around is ridiculous. Why not trade tulips or Tickle Me Elmos instead...

I fail to see what my gold has to do with "investment and commerce" because;
1) It's not an investment, it is wealth.
2) I never said a thing about selling it, or a thing about buying anything.

I aint worried too much about our de-valuing dollar, because I aint holding enough of 'em at any given time to worry about.

If I had any tulips and knew someone that would trade their gold for 'em, I'd be all over it.

I got no idea what a "Tickle Me Elmo" is, so I can't comment on that one....except to say that from the sounds of it, I'm perty-sure that I'm glad I don't know.

I hope that helped ease your concerns.

DGW

 

[Bear Paw Jack]

Personally I lean toward the bigger investments to be Real Estate. Getting ready to buy my second rental and in 4-5 years I'll buy a 3 rental, hoping to get a total of 5 before I lean back. I tend to see it as multiple streams of income in my retirement. I know too many people that counted on their retirement to continue to buy the same amount of stuff 20 years later. It won't.

Just the same with a 70:1 split with gold I've been buying some more silver. May take longer than I'd like to move to where I'll sell it but otherwise I tend to just spend it on guns. :) Nothing wrong with that either but the market is obviously soft on those too.

 

[DGW1949]

It's all good Blume, I like ammo to :D
Beauty of it you collect what you like. ps

Me too. Problem is though....at my house, it ends-up getting shot-up. :lol: .

DGW

 

[powder smoke]

Just a good reason to reload and, or buy more. ps