Afternoon everyone…..
I know that silver has been on quite a tear since late October. Especially volatile during December. While I’m in no way trying to be a downer on this recent historical silver spike. I do want to share some history of the silver spikes.
I was only ten years old during the Hunt brothers trying to corner the silver market. But I do remember my grandfather converting all his silver to gold during it. He had coffee cans of 90% silver quarters and dimes that he converted to over seventy $20 US gold coins. The gold to silver ratio dipped all the way down to 17-1.
He never converted back to silver after the huge drop from $48 to around $11 in just about a month’s time. My guess is due to storage reasons, but I honestly don’t know.
I was an active stacker in 2011. While I didn’t have a massive amount of silver, I did take full advantage of the spike from somewhere around $15-$16 all the way up to $48. I didn’t wait till the peak to do my selling. I started to sell my silver between $44-$45 an ounce. The demand was still very high and I remember getting $1 over spot for my silver at that time. The gold to silver ratio dropped to 32-1. I converted 400 ounces of silver to 12 ounces of gold. I did convert ten of the twelve ounces back to silver roughly a year later. Turning my 400 ounces into 700 ounces, plus two ounces of gold.
While this spike in silver is fundamental different then any other silver spike. There will still be many similarities from the past. If you wait for the top of the spike, you might completely miss out. Because while silver spikes up are pretty volatile, the drops on silver are way worse. The price can drop 20-30% in just one day of trading. It has in both previous silver spikes.
I’m not looking for the top, I’m looking and following the ratio. I’m in no way looking to turn metals into shitty fiat currency. I’m looking to convert my silver into gold. Less storage more predictable price increases, with way less worry. I’m not a youngster and I’m not praying for another silver spike like this. Most likely I won’t be around or will be in my 80’s for the next one and won’t care. Gold will always be a solid asset and I’ll be happy holding it and storing it as opposed to silver. While I’m won’t be swapping all of my silver, the majority of my silver will be converted to gold.
I’m by no means a finacial advisor, nor do I claim to be. But I’m not a fool either, and having money in metals is always a solid choice. It can be life changing if done correctly.
The next three to six months are going to be very volatile in the silver market. There will be huge swings both ways. Some trying to push the spot price down, while actual silver can’t be touched for anywhere near the spot price.
As of me writing this post silver spot price is sitting at $71.66 an ounce. I’ve personally checked all of the big on line dealers Apmex, JM Bullion, Bullion Exchanges, and Monument Metals. You can’t touch a one ounce round or bar for under $80. So that’s an $8 an ounce premium. That says it all. Be smart, make your own decisions. Don’t listen to all the noise and distractions you will hear on the media. If they are talking about it, it’s already old news or what the powers that be want you to hear.
#Stack hard and stack smart
