The Gold-to-Silver Ratio Opportunity
Gold/Silver Ratio Alert!
We like to alert our friends and clients to great profit opportunities when they develop.
In a bull market like this the gold price often goes up first, leading the way. But when silver starts moving, it can really rip! Once again in this bull market, gold has soared, outpacing silver… for now!
Professionals in these markets use a time-tested strategy that allows them to increase the number of ounces of gold and silver they have over time without investing additional money. It tracks the ratio of the two metals’ prices as a means of knowing which is historically undervalued.
Let us explain.
Because gold and silver each have their own supply-demand fundamentals, their prices don’t move in lockstep. As prices change the ratio between the two metals will change. This technique allows you to be in the precious metal poised for the fastest price appreciation.
The gold/silver ratio is simply the price of gold divided by the price of silver. It reflects how many ounces of silver it takes to equal an ounce of gold. When silver appreciates faster than gold, the ratio moves down. When gold appreciates faster the ratio moves up.
Right now, with gold’s powerful bull market, gold has outpaced silver. In fact the gold/silver ratio has been trading around 100 to 1. That’s the highest in 4 ½ years.
An example of this simple strategy for illustration purposes using the spot prices of the metals, ignoring transaction costs and premiums, can help make the strategy clear. Suppose that you have 100 ounces of gold. With the gold/silver ratio now at 100 to 1, you trade your gold for silver, getting 10,000 ounces of silver.
Over time, imagine that the ratio falls to 75 to 1, where it was last May. You then trade those 10,000 ounces of silver for 133 ounces of gold. You have increased your gold holdings by 33 percent in this hypothetical example.
Using the gold/silver ratio as a trading strategy, one that keeps you fully invested in precious metals all the time, is a powerful means of growing the total number of ounces of gold and silver you own.
Speak with your Republic Monetary Exchange precious metal specialist to see if taking advantage of today’s gold/silver ratio at these multi-year highs makes sense for you.
He will explain how to grow the number of ounces of precious metals in your portfolio. Trading the gold/silver ratio is a simple strategy, one that we and many of our clients have used for years.
We think it represents a tremendous opportunity.