USE THE GOLD SILVER RATIO STRATEGY TO INCREASE YOUR PRECIOUS METAL HOLDINGS
Advantages of using the gold silver ratio to buy precious metals
- Know which metal (gold or silver) is a better buy at any time
- Multiplies one’s gold or silver ounces over time with very low risks
HOW YOU CAN BENEFIT FROM THIS STRATEGY NOW
The gold silver ratio is obtained by dividing the price of gold by the price of silver. For example, if the gold price is $1,800 and the silver price is $20, the ratio is 90.
When the ratio is high (e.g. 80 or more), silver is undervalued compared to gold. Buy silver first, even if you prefer to buy gold!
Watch this video to learn why…
Here’s a recap of the strategy:
At 1:80 gold silver ratio, buy 80 oz of silver instead of 1 oz of gold.
When the ratio becomes 1:50, selling the 80 oz of silver gives you 1.6 oz of gold. That’s 60% more gold than if you had bought 1 oz of gold when the ratio was 1:80!
WHY THIS STRATEGY WORKS
Since 1985, the gold silver ratio has consistently bounced between 50 and 80, as seen in the chart below. This pattern is formed as gold and silver prices fluctuate, creating instances when one metal is overvalued compared to the other.
As shown in the chart…
- If 1 oz of gold was bought in 1985 when the ratio was at 50, it could be sold for 80 oz of silver in 1990 when the ratio was at 80.
- When the ratio declined to 50 in 1997, the 80 oz of silver could be sold for 1.68 oz of gold.
- When the ratio rose to 80 again in 2003, the 1.68 oz of gold could be sold for 136.4 oz of silver.
- When the ratio declined to 50 in 2006, the 136.4 oz of silver could be sold for 2.74 oz of gold.
- When the ratio rose to 80 again in 2008, the 2.74 oz of gold could be sold for 221.2 oz of silver.
- When the ratio declined to 50 in 2010, the 221.2 oz of silver could be sold for 4.47 oz of gold (this is 4.47 times the original 1 oz of gold in 1985!)
- When the ratio rose to 80 again in 2016, the 4.47 oz of gold could be sold for 358 oz of silver. (also 4.47 times the 80 oz of silver first purchased in 1990!)
This strategy is simple to execute – requiring only 1 trade in 3 to 5 years. It has been a recurring pattern for nearly four decades and is therefore quite reliable. One will only need to have the patience to execute this strategy!
When the gold silver ratio is on the high side, buy silver to start using this strategy to increase your precious metals holdings!