GSR for Dummies

O

ounces

New Member
Or at least GSR for a new stacker.
I see once in a while someone will post about a swap of silver for gold when the GSR hits some magic ratio
Why should I be aware of the GSR and what do I need to study up on to be a better stacker.
Thanks
Ounces
 
House,
Just read your post and I don't know if I should laugh or stick my head in a bucket of cold water
Did I learn anything? (I think so) but for now I will stick to dogs and forget about GSR and just keep stacking.
LOL
 
Some members here so successfully trade GSR to increase their ounces in either so wouldn't totally dismiss it without further research. Goldstackers accommodates GS swaps so it'd be quite easy to do it with your Unallocated.

Might be worth reading, some good discussion on the topic-

http://forums.silverstackers.com/topic-30684-gsr.html

http://forums.silverstackers.com/topic-34055-gsr-the-fallacy-of-161-page-1.html

GSR charts are at the bottom of the page- http://www.silverstackers.com/charts/
 
In short, buy silver if you want to get rich (or poor), get gold if you are afraid of the future and just want some form of insurance.
 
The Gold to Silver Ratio looks quite steady now, and when gold goes up, silver does and it seems to stay in ratio somehow (despite one being an industrial metal and one being mostly decorative)

Sometimes it does change, at one stage quite recenlty you could swap 1 ounce of gold and get about 66 ounces of silver in exchange. Now the ratio has changed a bit, it is 61, so you could swap your 61 ounces of silver back and get an ounce of gold in exchange. You now have one ounce of gold (Which is what you started with) and 5 ounces of silver, which you got for nothing.

The good thing is it doesn't matter what the price is doing, going to the moon, or crashing.

The bad thing is there are fees involved.

Physical metals require face to face meetings or trusting the post service.

Unallocated is easier but there are transaction fees which will distort the reported GSR. You need to work out your own Unallocated GSR, currently with fees I am looking at a GSR of 57 not the 61.5 shown on the graph.

I have set an arbitrary GSR at which I will buy silver, anything higher than 55, and another arbitrary value of 65 where I will swap some gold for silver, or 45 where I will swap some silver for gold. I should probably update these if there is a trend forming in the GSR but life is too short.
 
House,
Thanks for the links good read

Jislizard,
Well said and now have a better understanding of GSR

Thanks
 
Is there any chart out there showing a more realistic GSR taking into consideration fees, premium of the coins/bars?

Was thinking of converting some silver into gold.

If I were to use a GSR based on spot price alone, I would be better off selling my silver first and buying the gold later.
 
Altima said:
Is there any chart out there showing a more realistic GSR taking into consideration fees, premium of the coins/bars?

Was thinking of converting some silver into gold.

If I were to use a GSR based on spot price alone, I would be better off selling my silver first and buying the gold later.
Click to expand...

the real GSR is usually between 4 to 6 points lower than the spot GSR, depending on the dealers and what you buy.
 
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