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We are getting close to a G/S ratio of 60...a medium-term plan of buying silver and shorting gold could prove profitable in a sideways or bullish market...possibly even a down market. The only thing this strategy is betting on is the ratio moving downwards. Possibly something to look at, this was the trade to be in August of 2010.

I see this is your first post. Welcome to realcent. Been lurking long?

What are some of the best resources you use for financial info and for making a buck off the GS ratio?

Thanks and have fun here.

Silver is still largely an industrial metal...I don't think the ratio will go dramatically lower until the economy starts to pick up. Until then I believe gold will outperform. Long term, I think there just might be more to make in silver, but not until the economy improves. That's just one stackers opinion and I could well be wrong. I hold both gold and silver so I won't be too disappointed as long as both help me maintain purchasing power.

You are correct, silver has a strong correlation with the economy (ie S&P). Considering this, the reason why I will enter this trade in the near future if the ratio continues to increase is because gold also shows this correlation and the metals move in the same general direction. I'm solely betting on the ratio, not the price direction...and I don't see the ratio topping the 70 territory. I wouldn't bet the whole farm on this trade, but a nice side trade could add some frn's and be used to stack some more metal. It has a pretty good chance of paying off medium term when the ratio hits the 40's.

The sure bet is if you don't stack you'll never know. Miss a day of golf, bowling, etc and buy some PM's... I for one like silver and gold... and copper.. and...

I've entered into this trade at a G/S ratio of around 56.

I'm inclined to go the opposite of this trade since the ratio is rising.

SilverBoots wrote:We are getting close to a G/S ratio of 60...a medium-term plan of buying silver and shorting gold could prove profitable in a sideways or bullish market...possibly even a down market. The only thing this strategy is betting on is the ratio moving downwards. Possibly something to look at, this was the trade to be in August of 2010.

Welcome brother....yes indeed, a sound course of action, it does look as if the g/s ratio is going lower....i might just have bought a few ASE rolls, but with my early dementia, i cant remember. (lol)
neil

reddirtcoins wrote:The sure bet is if you don't stack you'll never know. Miss a day of golf, bowling, etc and buy some PM's... I for one like silver and gold... and copper.. and...

and ....wheat...dont forget wheat bru.