How balancing your silver and gold can increase your metal holdings

On the stock market it's called pairs trading. It can work with any two assets and they don't necessarily need to be directly related. In fact it can be an advantage if they aren't. It does work but commissions can hurt.

malachii

 

Projack.. I knew you would have the exact % figures at you finger tips.

Thanks for the post but my post wasn't too bad for old timer.

Regards Errol 43

 

* edit
I like fiatphoney's idea of playing with the non-core stash

 

there is always exception, for brokers the commissions are FREE, only need to pay clearing fee,+small gst etc, much less than 0.01%

 

I think your illustration is too big for the ordinary guys here, may be can use smaller size as an example.

total the amount of gold transacted, when the GSR are static/flat, then total the sum of silver transacted, total ounces. then you have the market size.

in this SS community, not very many can transact that kind of size without discounts.

(this works like volume traded in a stock for a price level, not many people can sell at the top price. there are maximum volume traded at a price in a single day.)

there are benefit in doing the swaps for sure, but after the opportunity costs the benefit can not last very long and limited.

 

Wold work fine for dealers and frequent traders here to keep even value for gold and silver in stock
For smaller size just take one 0 from the end and the end result is oz gold and 15 silver

 

What about not having super "cos it's a super ponzi scheme"?

 

Thanks for the tips. I am new to this stacking game and so far light on gold. I have been considering more Gold for a while. Was put off by the huge cost/oz but have been convinced by the fractional gold arguments on here that there is an important place for gold in the little peoples stack.

I think it will be a while before I am in a position to make trades as illustrated in this thread. But I am now seeing that If I aim for a 50/50 split by value as described, this will be advantageous. As I am still well short of my desired "core position" I now intend to add silver or gold to my stack each pay period towards 50/50.

This way if I was at 50/50 one fortnight..... the GSR shifts in one direction before my next payday this will direct my next purchase to bring my stack back to 50/50.

Thanks Projack this thread has given me a bit of motivation to get my gold holding up and a bit of a rational to follow once I get to 50/50.