PDA

View Full Version : Trade 48 Silver, for 1Oz Gold?


Medina
12-23-2010, 06:09 AM
My swap points are:

40,
30,
20,
And the rest on 15.

Would I do it now in hope to see the ratio widening out again? What would you guys do... It can play out both ways.... I currently only hold physical silver, and mining stocks.

elephantine
12-23-2010, 09:52 AM
Does that refer to a physical swap, and if it does is it through a private party or a dealer?

If you've got 100+ oz of silver and if you can find a dealer that'll do a 48:1 swap, I'd jump on it. Never hurts to hedge a bit just in case we never see that <40 GSR.

Most of the dealers near me are asking a $180+ premium/ounce and they're not comfortable with a 48:1 swap without an additional fee of $50-100.

Long_Live_Ron_Paul
12-23-2010, 10:00 AM
My swap points are:

40,
30,
20,
And the rest on 15.

Would I do it now in hope to see the ratio widening out again? What would you guys do... It can play out both ways.... I currently only hold physical silver, and mining stocks.

I wouldn't do it. I wouldn't part with my silver for any metal. It's too undervalued & will reap the greatest ROI. At the end of the day, isn't that what matters?

theplantguy
12-23-2010, 10:07 AM
I wouldn't do it. I wouldn't part with my silver for any metal. It's too undervalued & will reap the greatest ROI. At the end of the day, isn't that what matters?

What will be you ROI when silver = $0?

Long_Live_Ron_Paul
12-23-2010, 10:24 AM
What will be you ROI when silver = $0?

That makes no sense.

theplantguy
12-23-2010, 10:28 AM
That makes no sense.

It means that no one will trade silver for FRNs.
At any rate, I'm not sure why anyone would trade an asset for a for a depreciating liability.

999FINE
12-23-2010, 10:28 AM
What will be you ROI when silver = $0?

Do you feel Silver is going to $0...why...

Long_Live_Ron_Paul
12-23-2010, 10:44 AM
It means that no one will trade silver for FRNs.
At any rate, I'm not sure why anyone would trade an asset for a for a depreciating liability.

You're saying that FRN's will hold no value and therefore no one would trade their silver for worthless paper correct?

droopy
12-23-2010, 10:47 AM
What will be you ROI when silver = $0?

Makes a lot of sense to me. In the future no amount of dollars, expressed as $0. will buy PMs. Dollars will be worthless in any transaction. IMHO.:)

theplantguy
12-23-2010, 10:50 AM
You're saying that FRN's will hold no value and therefore no one would trade their silver for worthless paper correct?

Exactly.......................

Long_Live_Ron_Paul
12-23-2010, 10:51 AM
Exactly.......................

Oh, well in that case, I completely agree :)

I thought you were saying the silver would be worthless....:rolleyes:

999FINE
12-23-2010, 11:57 AM
They will never be "worthless"

even paper has some very small value...
They can also be used to start fires and wipe the poo off the rim...
:)

SilverMiner
12-23-2010, 12:11 PM
I think you meant to say then the value of silver is "infinite" in FRN terms, not zero.

theplantguy
12-23-2010, 12:15 PM
I think you meant to say then the value of silver is "infinite" in FRN terms, not zero.

The correct way to state it is $0, econ 101

Mtforpar
12-23-2010, 12:34 PM
I feel now is a good time to swap. I love silver and the silver story. However, gold has a long history as money in many cultures around the world more so than silver. Right now we are in a monetary crisis and that will favor gold IMHO. I see the ratio going back up in the intermediate term. Very short term silver has been moving like a locomotive so the momentum could carry the GSR lower. But timing the exact bottom of anything is tough so I would and have acted now.

theplantguy
12-23-2010, 12:41 PM
I've been slowly converting silver to gold. One reason is a security reason. Silver is bulky. Gold on the other hand isn't. You can put $500k (in today's dollars) in gold in a shoe box. Silver requires much more room and therefore is harder to hide.

Thx1138
12-23-2010, 01:18 PM
I feel now is a good time to swap. I love silver and the silver story. However, gold has a long history as money in many cultures around the world more so than silver. Right now we are in a monetary crisis and that will favor gold IMHO. I see the ratio going back up in the intermediate term. Very short term silver has been moving like a locomotive so the momentum could carry the GSR lower. But timing the exact bottom of anything is tough so I would and have acted now.

Yep, agree 100%.

The way I see swaps... if you swap too soon you run the risk of not making as much as you would have if you had a magic swami that could tell you exact future GSR figures.

It's not like you are going to lose money, you stand over time to make a pile... 40%+ in one trade?

If I started to see a reasonably solid up trend in the GSR I would not hesitate to make the trade.

Thx :)

999FINE
12-23-2010, 02:07 PM
I want to as well, but i know my core isnt big enough yet...And i already own gold so im not that pressed to get it..but i do want more...Something about holding a gold coin that silver cant replicate

999FINE
12-23-2010, 04:02 PM
GSR is currently at 47.09...Almost 46!!!

jidan
12-23-2010, 05:06 PM
45 was supposed to be the magic number.

govikesgo
12-24-2010, 12:44 AM
Exactly.......................

I think you may be jumping the gun a bit. I didn't read his post as saying he was gonna cash in once the FRN's are obsolete. He's looking for a trade NOW. 99.99% of the world recognizes the USD as viable currency. Depreciating, yes, but still a symbol of economic power. We are just hedging with our silver. LOTS of things have to happen before the paper we have is just paper. It's not like this is going to happen overnight. Too many people are crying that the sky is falling and although we can do things to increase our wealth, I'm not certain what percentage of the people on here are looking at their silver as the "new" Currency, just looking to take an uphill ride to the bank. In the end, more than likely all of us will be cashed in, hopefully at huge profits. Then we will take our FRN and live like the rest of the people in this country, but hopefully a little easier. At some point PM's are going to give way to Land and real estate. Are we then going to exclaim that dirt is the "new" currency? Frankly I don't relish living in a world where our PM become the coin of the realm, because if that's the case, we'll have witnessed some pretty horrific things.

999FINE
12-24-2010, 08:41 AM
I think you may be jumping the gun a bit. I didn't read his post as saying he was gonna cash in once the FRN's are obsolete. He's looking for a trade NOW. 99.99% of the world recognizes the USD as viable currency. Depreciating, yes, but still a symbol of economic power. We are just hedging with our silver. LOTS of things have to happen before the paper we have is just paper. It's not like this is going to happen overnight. Too many people are crying that the sky is falling and although we can do things to increase our wealth, I'm not certain what percentage of the people on here are looking at their silver as the "new" Currency, just looking to take an uphill ride to the bank. In the end, more than likely all of us will be cashed in, hopefully at huge profits. Then we will take our FRN and live like the rest of the people in this country, but hopefully a little easier. At some point PM's are going to give way to Land and real estate. Are we then going to exclaim that dirt is the "new" currency? Frankly I don't relish living in a world where our PM become the coin of the realm, because if that's the case, we'll have witnessed some pretty horrific things.

I dont think its possible to phrase this any better...
+1000