Acquire more precious metals at no additional cost – really! One of the best techniques I have employed over the past 18 years is swapping gold for silver and silver for gold when the ratio between the two favored one over another. It is that time again. The Gold/Silver Ratio is almost at 58:1 as I write. It has broken out of a rising wedge technical formation headed toward significant resistance at 60:1. The Relative Strength Index is substantially overbought, indicating a top – and poised to roll over. It may hit 60, and it may not. If it does, it will be very fast.
As strongly as I ever suggest anything, I suggest you swap gold for silver here – and do it right now. Swap for one ounce silver rounds (now 55 cents over spot) or 100 ounce bars (now at 50 cents over spot) as 90% pre-65 silver coin currently carries too high a premium ($2.50 over spot). As an “fyi”, that is the highest premium we have seen since the 2008 post-election panic and in the late 1990’s before the Y2K scare.
In essence, you are trading something that is relatively expensive for something that is currently inexpensive. You spend no money (except trading costs) and come away with more gross ounces of metal. I typically gain 25 – 30% in metal whenever I have deployed this strategy. At some point in the future, when the ratio approached 30:1, we will swap back the other way and lock in our profit, again at no cost.
All Things Considered – John’s Commentary:
On swap trades we charge ONLY ONE-HALF of our normal commission. Others will charge a full commission on both the buy and sell side of the trade. Beware!
Call (800) 390-8576 to discuss if this strategy is right of you.
Quote of the day: “Politicians can’t give us anything without depriving us of something else. Government is not a god. Every dime they spend must first be taken from someone else.” – Barry Asmus
