Good morning mates. Many stackers here collect both gold and silver (and possibly other PMs). We often heard stackers talking about keeping their gold and silver at a certain ratio. For example 1:1, or 20:80. Do you guys mean in terms of ounces or dollar value?
I think it is done both ways. Personally I believe that it should be done on a $ value basis. As this will cause it to fluctuate and make it easier to determine when you should be trading out of one and into the other.
I'm aiming for a 1:1 ratio of gold:silver ounces. As you might have guessed, I'm firmly in the gold camp
If someone says that they are 50:50 gold to silver, generally that's a dollar value ratio. However you can then express this as a "personal GSR" of say 45, which would be 45oz of silver for every oz of gold. So it can be either way. Personally I track both.
If you are going for 1:1 by weight then i dont really see the point in owning any silver at all. It ends up being about 2% of the value of your PM's. Personally: $ approx 80% gold 20% silver Ounces 1oz gold for every 8oz silver
That depends on the gold/silver ratio. If the ratio is over 60 I am buying silver until I get to a ratio of 20:80 gold/silver If the ratio is between 60 and 40 then I aim for 1:1 gold/silver If the ratio is under 40 then I am buying gold with a target of 80:20 gold/silver If the ratio ever hits 15 then I sell all my silver for gold If it hits 80 then I sell all my gold for silver. I also have a 30% PM 30% stocks 30% cash target (Eventually I will add property to this) but I find it hard to hold cash even with good interest rates. Edit: all ratios by market value.
You could also consider monitoring the size of the stack expressed in silver only. Imagine a stack as below 150 oz silver 3 oz gold 0.25 oz platinum 0.25 oz palladium Rough Calcs in USD, but pretty much the same in any other currency ( as we are looking at ratios ) Ag . . $ 40 Au $ 1740 Pt $ 1790 Pd $ 755 TOTAL WEIGHT = 150 + 3 + 0.25 + 0.25 = 153.50 Oz TOTAL VALUE = ( 150 * $40 ) + ( 3 * $1740 ) + ( 0.25 * $1790 ) + ( 0.25 * $ 755 ) = $ 11857 So ratio of stack by Weight Ag : 97.71 % Au : 1.95 % Pt : 0.16 % Pd : 0.16 % Ratio of stack by Value Ag : 50.60 % Au : 44.02 % Pt : 3.77 % Pd : 1.59 % Total Value expressed in silver only $11857/$40 = 296 oz
I prefer 1 Gummy shark to every 12 Snapper,and a couple of squid every now and then is pretty ok as well...........Ahm sorry wrong forum!
I track it in AUD, since most of my other investments are in AUD. It's simpler to see the overall breakdown that way, and also group certain items together.
My method is to stick pretty close to the GSR, but if one metal is trending better than the other, then I'll lean a little heavier towards that metal. Of course, how well I stick to my method is an entirely different matter... More closely related to the scotch/beer ratio....
Rather depends what you hold silver for. For me, silver covers two eventualities. One is covering the chance that against all indications otherwise, silver becomes the monetary reference instead of gold. The second is so that I have something tradeable of value in case of SHTF. 2% of a stash is more than enough to cover the above.
