Why Is Silver so Sluggish? - ABC Bullion report 28 June 2019

Thanks mate. I thought about covering the ratio and when to overweight into silver after reading this on https://www.silverstackers.com/forums/index.php?threads/gsr.91307/page-2#post-1087923

So I switched 25% of my unallocated gold to silver when GSR hit 65, 25% when GSR hit 70, 25% when GSR hit 75 and the last of my gold when GSR hit 80.

At the time I set this system up, the GSR as holding fairly steady at 45 to 55 so I never really expected it to actually get to 80.

The idea is that if GSR drops back to the 50s and below, I will start swapping my silver for gold. It doesn't look like this will happen but it also didn't look like it was ever going to get to 65 either.

So now I have a dilemma, I have a ton of unallocated silver in my SMSF which is basically there for my GSR swaps. Personally I have plenty of junk silver, silver rounds, silver bars and silver coins, I met my silver stacking goals a while back now and I am no longer buying anything but junk silver.

I have a few gold coins, not a collection and barely enough to justify calling it a stack, but they are gold, and they are my only gold hoarding, if I swap them out into this new era of high GSR I will get a lot more silver, which I already have, and deplete my tiny remaining amount of gold.

I am very tempted to sell my gold and get lots more silver, but that would be selling something that is starting to perform very well, to buy something that is performing very poorly (and has been performing worse and worse over the past couple of years)

Do I need even more poorly performing metals in the hopes that they will recover in a few years? At this GSR it certainly feels like one of those "Once in a lifetime, kick-yourself-if-you-miss-it, fortune-favours-the-bold situations)
Do I wait until GSR goes even higher (I have done some decent swaps so holding on for an even higher GSR would not hurt, I would hate to swap now and it continues to climb)
Do I keep hold of my meagre supply of gold and just pin my hopes on that increasing its value? If I cash out of gold now, I might not be able to afford any more if the prices rise and I would be drawing a line under any future profits if gold continues its rise.
 
If past trends are still valid, Silver needs a recession. If you look a the chart, since the 1960s, silver bull market starts after a recession (greyed vertical bar) almost without fail. Take note of the 2000-2001 recession after which Silver started the huge bullrun beating gold and all other asset classes with it's easily 6 or more folds appreciation over a 10 year period. If silver were to go up 6 folds today, we should be looking at $80 silver. But there's also a chance that silver will correct to a lower low during a recession as it has done in 2008 before the final shoot up.

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

iZnzXhE.jpg
 
Last edited:
Still in the early stages. Wait till there is a real crisis, when gold is $2500 an oz, not many people can afford, they will buy silver instead. Silver is affordable even if it costs $100 an oz.

The pandora stores in town having good business, gold is too expensive so husbands are buying silver jewellery for anniversaries. The fashion trend is towards silver jewellery. Gold Jewellery might be too expensive and risky to wear in public in the future.
 
Last edited:
ec25d828c05d6f2cfbb54015bb43d589.jpg


there are 1/10th or even 1 gram bars etc
it was the old argument, that statement is not correct

there are spreads costs

many times been compared 4 metals

1.Palladium widest
2.Platinum
3.Silver
4.Gold the narrowest spread
 
Back
Top