Do you know you can make increase your wealth by just swaping Gold-Silver ?
Today we will discuss on swaping Gold-Silver. Means when to keep Gold and when to keep silver in your portfolio.
The high trend in the metals has many investors owing both. But, there is more you can perform with silver and gold bullion that just purchase and hold. You can also periodically swap or trade one for the other. To do so perfectly, you initial need to know the silver/gold ratio.
The silver/gold ratio tells the figure of kg of silver it would take to buy one kg of gold at a particular time. If you check silver and gold prices going back 4,000 years, will find:
- The old ratio is 16:1 (it has taken sixteen kg of silver to purchase one kg of gold)
- For the last hundred years, the ratio has been 30:1
- In the last twelve years, the ratio has held near to 60:1
- In only the past the five years, the ratio has changed from the low fourteen to almost hundred
- As of March, 2011, the silver/gold ratio was sitting a little below 40:1
How do we take benefit of this fluctuation?
Primary – we time our buying based on the ratio. When the ratio is relatively top, we favor silver in fresh purchases. When the ratio is quite low, we favor gold.
End – we act when the ratio gets tops and bottoms. When the ratio is top, we swap gold for silver. Then when the ratio decreases, we swap silver back into gold. In other words, we swap silver for gold when silver has valued quicker than gold. Then, we swap gold back into silver when silver becomes affordable match to gold. Every time we go via this cycle – gold to silver and go back to gold – we raise our kgs. That’s the full aim. For example:
- Guess you had one kg of gold, and the silver/gold ratio increased to 80:1. You would swap your single kg for gold for eighty kg of silver.
- When the ratio moved to 40:1, you would swap your eighty kg of silver back to kg of gold, doubling the figure of kgs you hold.
Additional, utilizing this idea does not need any further monetary outlay. Taking benefit of the ratio plan beats the substitute – sitting still waiting for the price to increase.
Taxes – if you realize revenue from the transaction, you may add tax on the increase. We do not provide tax suggestion. Please talk with your tax expert.
Market danger: The challenge is perfectly identifying the swapping points based on the qualified valuations between the metals. The ratio might move much lower or higher than our aim. We would then need to wait higher for the ratio to readjust itself. This is an important danger to those trading the ratio.
More kgs at no cost – The silver/Gold ratio trading technique takes an investment that is otherwise stagnant and makes growth by raising the number of kgs you hold with no further cash outlay. Between now and the finish of the bull market you should conservatively guess to double your kgs utilizing this formula.
What you need to understand
- When I was first begun to purchase metals almost twenty years ago, my mentor regularly reminded me that he was not a spiritualist. In the hint, if I am incorrect about silver/gold ratio, it will price you cash. You will purchase silver expect of gold and gold will outpace the silver, or vice versa. I don’t believe that will occur. Or, if it does, it will be temporary. I have fruitfully deployed this technique numerous times. Sometimes this time-frame between swaps is quite short – maybe just a few months. Other times it has taken 2 years or higher.
- I am advising swapping silver for gold when the silver/gold ratio decreases to 48 or less. Think swapping more if the ratio decreases further. We will then seek the chance to swap that gold back into silver, arresting that gain in further kgs of silver
- The swapping technique jobs for both big and little investors as long as you are willing to swap (one hundred fifty) grams of silver or more.
- This is only a technique. Please do your own due diligence and make your own investment plan.
- I still finally favor silver over gold as it remain sure that ratio will reach 16:1 (or minor) at the peak of this bull market.
It is not possible to swap an actual amount of one metal for the actual amount of another. For instance, one kg of gold might purchase 50 kg of silver, but never actually 50 kg even. I do my extremely best to swap as near to even-up as easy.
As of 20th March 2016 Silver Gold Ratio was 75.5:1. Means you require 75.5 kg of Silver to buy 1 kg of Gold.
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