Gold to Silver Ratio: A Second Chance

31 May

Gold to Silver Ratio: A Second Chance

Gold Market Discussion

Today we have a rare and potentially extremely profitable opportunity for our friends and clients.  

The Gold-Silver has recently reached levels that have not been seen in more than 25 years!

The ratio is simply the gold price divided by the silver price.  It tells you how many ounces of silver you can buy with one ounce of gold.

The ratio is so high right now that you can get more ounces of silver for each ounce of gold than at any time since 1993!  

It is like a second chance to take advantage of this opportunity.

Then, when the Gold-Silver ratio moves lower, you will be able to trade your silver back into gold with a net increase in the amount of gold you own!

More gold in your portfolio!  Without making any additional investment!

Recently the ratio has been in the high 80s range, creating a spectacular opportunity for you to increase your precious metal holdings.  It is a simple strategy that the professionals us to increase their wealth.

There is nothing magical about it.  Indeed, like so many of the best wealth building techniques it is really the essence of simplicity.

Let me give you an example of this powerful strategy.

Suppose you have 25 ounces of gold.  On a day when the Gold-Silver ratio is high, say 86 to one, you trade your gold for 2,150 ounces of silver. 

Then down the road, when the ratio reaches 50 to one, you trade your silver back into gold.  At that ratio, your 2,150 ounces of silver would be equal to 43 ounces of gold.

With this simple strategy, you would have increased your gold holdings from 25 ounces to 43 ounces, an increase of 18 ounces of gold.  

That is a 72 percent increase in the amount of gold you own!  With no additional investment.

This example, using the spot prices of gold and silver, is for purposes of illustration only because of transaction costs and since different coins and bars have their own premiums relative to the spot prices.  But I have chosen to be very conservative in illustrating this strategy.  

I used the example of trading with the ration at 86 to 1.  But the actual ratio as I write this is almost 90 to 1, even more favorable for making the trade.  And when you trade back into gold, the ratio could very well be even lower than the 50 to 1 example I used to illustrate the strategy, meaning more gold in your portfolio.  Your RME Professional will be able to give you specific recommendations depending on market conditions at that time.  

Many of our clients and I, myself, have used this powerful strategy for years to substantially increase our precious metals holdings.

The key takeaway is that with the Gold-Silver ratio at almost 90 to 1, the price of silver is historically low relative to the gold price.

Check out this infographic we’ve created at RME to illustrate ratio trading.

In a rising market, silver in poised to appreciate even faster than the price of gold.  With this strategy, you are never out of precious metals, but you always emphasize the one in your holdings with the greatest promise of profit.

And that is a good place to be!

If you own gold, even if you didn’t buy your gold from us, let us show you how the professionals use this ratio to maximize their profits.    Call or stop by.  

After all, why should you let the professionals have all the profits?


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