I did watch your original gold to silver ratio video and, yes, that’s what started me on this journey to checking the GSR often. Nice video, and my 85 ASEs look better than your tray. 😂
I just bought some backdate silver Maples and Eagles from Dave at Coinhuskers due to the GSR. (89:1ish) I had other plans for the fiat, but it made sense to me
Let's look at 1964 when silver coinage in the US stopped. At that time, a silver dollar would buy you 10 Mounds bars of candy. An ounce of gold was worth $35, so you could buy 350 Mounds bars. Today, an ounce of silver is worth about $23 or about 15 Mounds bars. However, an ounce of Gold is $2030 today, and it will buy you about 1500 Mounds bars. So, in 1964, you had a ratio of 1 to 35 silver to gold. Now, you have a 1 to 100 ratio silver to gold for the purchase of the same commodity. This is a triple increase in the ratio in silver to gold in the last 60 years.
True. But silver was available at a ratio of around 120 before and after the peak of 125. There was still a good opportunity to capitalize by coverting gold to silver at an extremely high ratio.
One thing I might add is that if you are trading silver for gold, the silver would have to appreciate several dollars in order to overcome the premiums or you lose overall.
Regarding 1:44. In 1717, when Sir Issac Newton was the boss at the Royal Mint in London, he set the Silver to Gold Ratio at 15.5 troy ounces of Silver to be equivalent in value to one troy ounce of Gold. Sir Issac Newton's mandate occurred 75 years prior to passage of the Coinage Act of 1792 by the United States Congress.
Love the channel. Question: If a customer is selling gold, can he get a little better price if he is using it to buy silver (or anything in the shop) vs. cash? Or are the margins just too tight? thx
It depends. Each situation is different depending on the items involved and the current market prices (both wholesale and retail). Normally I can offer the customer a better price on trade rather than treating it like a separate buy and sell.
Here's the problem I have with the math for those of us who don't own a coin shop. Suppose there are no premiums, and in my hypothetical world gold is at $1950 while silver is at $30, exactly 65:1. I have 520 ounces of silver, I sell at $30 each and get $15,600, and that $15,600 buys me exactly 8 ounces of gold. No suppose gold goes to $2040.20 (which it is today) and silver goes to $23.12 (which it is today), ratio of 88.2:1. I sell my 8 ounces of gold for $16,321.60 and buy 706 ounces of silver. I'm up 186 ounces of silver. (but note I'm only up $721.60). So here is the problem... when I sell my 520 ounces at $30 and get $15,600, that actually only buys me 7.62 ounces of gold (figuring a 5% premium makes the cost of gold to me $2047.50). Ok, so now the ratio is 88:1 (gold $2040.20 and silver $23.12 as before) and I sell my 7.62 ounces at spot getting me $15,546.32. And I buy silver at say $25.12 (lowest reasonable price will be about $2 over spot) getting me 619 ounces of silver. So I'm still up almost 100 ounces of silver, but I'm actually DOWN $54. And if I had to sell that silver the next day at spot it would only get me $14,311.28, and I'd be down $1,288.72. I'm actually better off simply selling the 520 ounces at $30 and then holding on to the $15,600 and buying at $23.12 ($25.12 after premium) getting me 621 ounces of silver. But again, even though I have 100 extra ounces, they are worth much less per ounce. And all of this is assuming the ratio goes from 65 to 88 which is a huge swing, and it is all assuming very modest premiums. Damn near impossible for us average guys to make this work out in our favor.
I get what you are saying. I think it's either focus on the fiat side OR focus on the GSR. if you have to emergency sell your stack at a bad time, that's just bad luck. In the GSR "model", the eventual target is to sell or trade when the value is higher but honestly, that's on the fiat side too BUT if silver does go up in value, you'll sure wish you had the extra ounces of silver.
You are absolutely correct in your observation. That’s why physical bullion should not be bought and sold to try to profit on price swings. That’s what the stock market is for, assuming constant trading is your thing. Or you could buy paper gold and silver for that type of trading, but there’s a reason the greatest investors to ever live traded stocks and not paper gold/silver. Physical gold and silver is a safe haven physical asset. Stocks/bonds are investments. Too many precious metals people get the two confused. They get so into physical metal that they want to trade it. That’s a lost cause.
@@ronwinkles2601 that is irrelevant. I just care about ounces of silver. I will never swap silver (real money) for monopoly money. why would you do that?!?
Great video! My question, at what point do we consider GSR to trade silver for gold? When the ratio drops significantly, the masses will head for the stores to either cash out or trade. With the stampede, there will be no gold to trade for. So, how do you balance the everwidening GSR gap and when do you jump in and beat the masses?
The ratio of silver vs. gold in the earth's crust is 17.5 : 1. Historically, the silver-to-gold ratio has been fairly steady (with exceptions such as those caused by a big silver or gold find), reflecting the availability of both metals. Because the silver and gold markets are being manipulated right now by the big banks and speculators, the current (artificial) value of silver vs. gold is 91 : 1. So... all I'm saying is to use your brains. It's only a matter of time before something happens and one of the megabanks finally demands physical delivery of the silver that the derivatives are based upon. Just watch what happens to the price of silver at that point.
you are not being fair, you know half of people have below average intelligence. everyone should have a fair chance at gold in a democracy, where all men are created equal. what is your advice for the rest of us, please. thanks.
I think there could be a problem with conversion if dealer spreads are high. Its not just premiums to take into consideration but buy/sell spreads and what the dealer needs or wants out of the deal as well. Josh, you are very fair 85 silver eagles for 1 oz gold. I dont see the dealers doing this is my area. Spreads are very steep especially for silver ...
For my money, gold is the only way to go. I only buy bullion coinage, and the premiums on silver coinage is just too damn high when you pay 25% to 30% for silver in premiums versus gold coinage at 3% to 4% in premiums. Example: 80 Silver Maple Leafs at $30 each equals $2400 and includes $560 in premiums over spot. One gold 1 oz. Gold Maple Leaf will cost you $2100 with spot at $2035 and includes a $65 premium. You go to sell either silver or gold the best you will do is spot, so you will lose your butt on silver.
In Australia you had to pay AU$24-26 for a bullion silver coin 5 years ago. Today you have to pay AU$50 for the same coin. 100% increase in 5 years. Not bad for an asset which has no counterparty risk.
It’s not about how much failing fiat currency you can get for your silver, it’s about how much silver you can get for your failing fiat currency. The silver IS the money. It’s all about perspective.
You are correct.. Gold is a tier 1 monetary metal, silver is an industrial metal. The ratio only matters if you're doing a trade. Same with copper, iron, anything of value.
Only people that don't understand asset allocation say things like that. How do you compare assets you want the one that is cheap compared to another asset. You can't expect old ratios but knowing the ratios gives you more and relevant information.
Gold to silver ratio is irrelevant, mainly due to skewed pricing of taxes and variable premiums. These metals should be viewed separately in terms of their a value within a given current economic and geopolitical environment. Over time my strategy has shifted from 40-1 S2G to 6-1 S2G, ŵhich seems from an historical perspective counterintuitive. However, this 6-1 S2G seems a perfect balance for purposes of liquidity and utility. Given that analysis is an end result of 9yrs accumulating, I would recommend the first 50-100oz of silver in your own currency denomination be acquired in the first instance.
I did watch your original gold to silver ratio video and, yes, that’s what started me on this journey to checking the GSR often. Nice video, and my 85 ASEs look better than your tray. 😂
I just bought some backdate silver Maples and Eagles from Dave at Coinhuskers due to the GSR. (89:1ish) I had other plans for the fiat, but it made sense to me
nice sharing my friend 👌💯👍🎉🎉🎉
Thanks for explaining the ratio. Especially for when to trade out. Makes a lot of sense. Congratulations on your 100oz. Gain!
Great video and info. Thanks for sharing
Thanks for the tip. Very informative! I wish you the best in 2024 (and yes, I AM subscribed!)
This angle of using the ratio never occurred to me, thanks!! I’m changing my strategy…
Great video and topic! Your delivery was spot on perfect. Thanks Josh. Will be watching your deals!
Let's look at 1964 when silver coinage in the US stopped. At that time, a silver dollar would buy you 10 Mounds bars of candy. An ounce of gold was worth $35, so you could buy
350 Mounds bars. Today, an ounce of silver is worth about $23 or about 15 Mounds bars.
However, an ounce of Gold is $2030 today, and it will buy you about 1500 Mounds bars.
So, in 1964, you had a ratio of 1 to 35 silver to gold. Now, you have a 1 to 100 ratio
silver to gold for the purchase of the same commodity. This is a triple increase in the ratio
in silver to gold in the last 60 years.
The is BEAUTIFUL information of wealth and knowledge, Thank You!
Great video Josh! Explained perfectly.
Great video. Very well demonstrated!
Thank you!
Great video .thank you still learning but am buying silver every week
This is a great video Josh!!!!
Glad you think so!
The problem with 125 ratio in 2020, there was no silver available to buy anywhere
True. But silver was available at a ratio of around 120 before and after the peak of 125. There was still a good opportunity to capitalize by coverting gold to silver at an extremely high ratio.
One thing I might add is that if you are trading silver for gold, the silver would have to appreciate several dollars in order to overcome the premiums or you lose overall.
interesting. how many dollars over?
Regarding 1:44. In 1717, when Sir Issac Newton was the boss at the Royal Mint in London, he set the Silver to Gold Ratio at 15.5 troy ounces of Silver to be equivalent in value to one troy ounce of Gold. Sir Issac Newton's mandate occurred 75 years prior to passage of the Coinage Act of 1792 by the United States Congress.
Love the channel. Question: If a customer is selling gold, can he get a little better price if he is using it to buy silver (or anything in the shop) vs. cash? Or are the margins just too tight? thx
It depends. Each situation is different depending on the items involved and the current market prices (both wholesale and retail). Normally I can offer the customer a better price on trade rather than treating it like a separate buy and sell.
@@minotcoinbullion Thanks for the reply
@@pcazz780 it depends is the universal answer for every question, how did his answer help you
Very informative.
Great tip.
Very good video.
Awesome video
Glad you enjoyed it
Here's the problem I have with the math for those of us who don't own a coin shop. Suppose there are no premiums, and in my hypothetical world gold is at $1950 while silver is at $30, exactly 65:1. I have 520 ounces of silver, I sell at $30 each and get $15,600, and that $15,600 buys me exactly 8 ounces of gold. No suppose gold goes to $2040.20 (which it is today) and silver goes to $23.12 (which it is today), ratio of 88.2:1. I sell my 8 ounces of gold for $16,321.60 and buy 706 ounces of silver. I'm up 186 ounces of silver. (but note I'm only up $721.60). So here is the problem... when I sell my 520 ounces at $30 and get $15,600, that actually only buys me 7.62 ounces of gold (figuring a 5% premium makes the cost of gold to me $2047.50). Ok, so now the ratio is 88:1 (gold $2040.20 and silver $23.12 as before) and I sell my 7.62 ounces at spot getting me $15,546.32. And I buy silver at say $25.12 (lowest reasonable price will be about $2 over spot) getting me 619 ounces of silver. So I'm still up almost 100 ounces of silver, but I'm actually DOWN $54. And if I had to sell that silver the next day at spot it would only get me $14,311.28, and I'd be down $1,288.72. I'm actually better off simply selling the 520 ounces at $30 and then holding on to the $15,600 and buying at $23.12 ($25.12 after premium) getting me 621 ounces of silver. But again, even though I have 100 extra ounces, they are worth much less per ounce. And all of this is assuming the ratio goes from 65 to 88 which is a huge swing, and it is all assuming very modest premiums. Damn near impossible for us average guys to make this work out in our favor.
you make no sence......
LMAO, grab a calculator, or just blindly believe whatever you wish. LOL
I get what you are saying. I think it's either focus on the fiat side OR focus on the GSR. if you have to emergency sell your stack at a bad time, that's just bad luck. In the GSR "model", the eventual target is to sell or trade when the value is higher but honestly, that's on the fiat side too BUT if silver does go up in value, you'll sure wish you had the extra ounces of silver.
You are absolutely correct in your observation. That’s why physical bullion should not be bought and sold to try to profit on price swings. That’s what the stock market is for, assuming constant trading is your thing. Or you could buy paper gold and silver for that type of trading, but there’s a reason the greatest investors to ever live traded stocks and not paper gold/silver.
Physical gold and silver is a safe haven physical asset. Stocks/bonds are investments. Too many precious metals people get the two confused. They get so into physical metal that they want to trade it. That’s a lost cause.
That’s why you don’t trade physical bullion…trade the futures contracts but stack physical
Awesome video thank you
It's always good to swap. We need to see the eatios in the 60s again.
What would be a healthy fee(for the buyer) a LCS should charge for trading gold for silver? Hypothetically generic bullion for both.
I use 3-5% of the transaction value. Sometimes a tad less
I just swapped gold for silver today ;)
@@johnstuartmill1500 I can't remember the exact numbers....but they bought the gold at around 2100/oz and sold the silver for $25/oz
I think you be better off to just keep your gold unless you are buying at spot with no commission on the silver.
@@ronwinkles2601 that is irrelevant. I just care about ounces of silver. I will never swap silver (real money) for monopoly money. why would you do that?!?
Great video! My question, at what point do we consider GSR to trade silver for gold? When the ratio drops significantly, the masses will head for the stores to either cash out or trade. With the stampede, there will be no gold to trade for. So, how do you balance the everwidening GSR gap and when do you jump in and beat the masses?
easy. you jump in right away. be first. even children understand the fastest win the race.
The ratio of silver vs. gold in the earth's crust is 17.5 : 1. Historically, the silver-to-gold ratio has been fairly steady (with exceptions such as those caused by a big silver or gold find), reflecting the availability of both metals. Because the silver and gold markets are being manipulated right now by the big banks and speculators, the current (artificial) value of silver vs. gold is 91 : 1. So... all I'm saying is to use your brains. It's only a matter of time before something happens and one of the megabanks finally demands physical delivery of the silver that the derivatives are based upon. Just watch what happens to the price of silver at that point.
you are not being fair, you know half of people have below average intelligence. everyone should have a fair chance at gold in a democracy, where all men are created equal. what is your advice for the rest of us, please. thanks.
I think there could be a problem with conversion if dealer spreads are high. Its not just premiums to take into consideration but buy/sell spreads and what the dealer needs or wants out of the deal as well. Josh, you are very fair 85 silver eagles for 1 oz gold. I dont see the dealers doing this is my area. Spreads are very steep especially for silver ...
Good point. All dealers will handle these trades differently. It pays to ALWAYS get a second opinion/offer.
Why is it not called the Silver to Gold Ratio?!?
people dont know how to calulate in decimals
We need silver shortages to see what silver is really worth...hopefully the future solar production will cause shortages.
@@johnstuartmill1500 okay Rockefeller shill
How about silver buffalo to good. When is that a good time
Free shipping?
On orders over $1000. Yes free shipping
Good clip. Need that ratio to come down. Thanks Josh
Any time!
For my money, gold is the only way to go. I only buy bullion coinage, and the premiums on silver coinage is just too damn high when you pay 25% to 30% for silver in premiums versus gold coinage at 3% to 4% in premiums. Example: 80 Silver Maple Leafs at $30 each equals $2400 and includes $560 in premiums over spot. One gold 1 oz. Gold Maple Leaf will
cost you $2100 with spot at $2035 and includes a $65 premium. You go to sell either
silver or gold the best you will do is spot, so you will lose your butt on silver.
We need.to set the standard by not selling silver rounds for less then $28 oz and everything 35 oz.
True ratio is 9-1
Pulling out of the ground so until then I will be patient
Ratios? Like when you go to a bar. 10 men to every 1 woman. So what. Its good information but what is important WILL YOU SCORE??
Comment for the a l g o.
20 years from now, Silver at 18 bucks...............but even then, they will be telling you it's gonna Sky Rocket anyday now.........
In Australia you had to pay AU$24-26 for a bullion silver coin 5 years ago. Today you have to pay AU$50 for the same coin. 100% increase in 5 years. Not bad for an asset which has no counterparty risk.
Silver to the Moon in 24. Lol.
I’ll buy silver all day long at $18 if the ratio is right.
It’s not about how much failing fiat currency you can get for your silver, it’s about how much silver you can get for your failing fiat currency. The silver IS the money. It’s all about perspective.
I think that folk band -
“ The Seekers “ sang a song called
“ I Am Australian “ …
Right ?
G’day mate ! 😂
The GSR is no longer relevant.
Why?
You are correct.. Gold is a tier 1 monetary metal, silver is an industrial metal. The ratio only matters if you're doing a trade. Same with copper, iron, anything of value.
Only people that don't understand asset allocation say things like that. How do you compare assets you want the one that is cheap compared to another asset. You can't expect old ratios but knowing the ratios gives you more and relevant information.
This isn't any different than trading stocks from a theory standpoint.
the reason why the ratio is like it is is due to rigging and it is illegal and a crime.
JUST SUBED I like SOME smaller channels!!!
Gold to silver ratio is irrelevant, mainly due to skewed pricing of taxes and variable premiums.
These metals should be viewed separately in terms of their a value within a given current economic and geopolitical environment.
Over time my strategy has shifted from 40-1 S2G to 6-1 S2G, ŵhich seems from an historical perspective counterintuitive.
However, this 6-1 S2G seems a perfect balance for purposes of liquidity and utility.
Given that analysis is an end result of 9yrs accumulating, I would recommend the first 50-100oz of silver in your own currency denomination be acquired in the first instance.