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GSR or PSR

PostPosted: Fri Aug 17, 2012 12:37 am
by shinnosuke
Anybody playing the trading ratios between Gold:Silver or Platinum:Silver?

It seems to me that trading a few ounces of gold for silver now would be the most beneficial when prices rally...because I expect silver to rise at a quicker rate than gold.

Am I crazy? Somebody talk me off the ledge.

Take a look at this post from another website:

Originally Posted by ME Co.

How's your ratio gonna play out after prems? From the look of your charts it looks to ME like Plat had its day, pretty sharp decline in ratio since Feb- maybe it goes back up, maybe not. BTW I checked and my other $500fv junk bag would get 5 oz but I'm not doin it. Good luck to you, I've got enough buyers remorse from my lone 1/4oz Eagle to do ME. HH Mark
Actually the ratio ends up working out rather nicely, matter of fact i even think it is better than trading for gold considering the bigger returns with platinum. It doesnt work out too well trading in 90% coins because those usually take a nice discount when you sell them but if you were trading 1 oz generic bars which Provident is paying Spot + .10 the premium wouldnt be so bad

Here is a comparison of premiums if you were to trade 1 oz generic bars at the rate of spot +.10 for gold:

Current spot for silver: $27.41
Current spot for gold: $1376.90
Current spot for platinum: $1672

Ratio for platinum/silver: 61.00
Ratio for gold/silver: 50.23

Silver to platinum trade by trading 1 oz generic bars: $1724+11.95 shipping (platinum bar)/$27.51= 63.10

Premium to trade is only 2.10 oz of silver

Silver to gold trade by trading 1 oz generic bars: $1409.85+11.95 shipping (gold bar)/$27.51= 51.68

Premium to trade is only 1.45 oz silver

So essentially you would giving up only slightly over 1/2 oz of silver if trading for platinum.

Now lets look at the returns. Over the last 20 years the PSR is averaged between over 90 and the lowest i can find out for the past 19 years was around 52 or so which means the PSR is near its bottom. It would be the equivalent of the GSR being around 40 or so which is the lowest in 20 years.

Now if we were to make a trade right now for platinum you can expect a nice return of an easy 30-40 oz silver if trading the PSR at a rate of 90-100, however if you were to trade the GSR the expected return would probably be around 15-20 oz provided you trade in your silver for gold today and then swap at a 65-70 ratio.

As you say platinum may have had its day and now its the time to seriously correct but historical data points to trading the PSR as something to consider if you want to increase your silver holdings.


Found here: http://www.goldismoney2.com/showthread.php?11082-Trading-the-Platinum-to-Silver-Ratio

Re: GSR or PSR

PostPosted: Fri Aug 17, 2012 2:29 pm
by Rosco
I'm buying Silver an holding the little gold we own. Looking to buy at Spot 90% or.999 but we are small timers Retired an have a life that is beyond Preparedness.
Thinking about trading 40% an jewelry for .999 with Scrapman for Rounds, just to clear out the odd ball stuff.

I do believe that any Silver or Gold will trade in bad times but think that AGE ASE Maples 90% an .999 will be more liquid in the USA along with Beans an Ammo :D

Re: GSR or PSR

PostPosted: Fri Aug 17, 2012 2:32 pm
by Rosco
I'm buying Silver an holding the little gold we own. Looking to buy at Spot 90% or .999 but we are small timers Retired an have a life that is beyond Preparedness.
Thinking about trading 40% an jewelry for .999 with Scrapman for Rounds, just to clear out the odd ball stuff.

I do believe that any Silver or Gold will trade in bad times but think that AGE ASE Maples 90% an .999 will be more liquid in the USA along with Beans an Ammo :D