Sup gang, so i know i said i'd try to make posts that ain't just "hey check out this coin i got"... and ya boy is a man of his word sometimes. It's easy to fall into that trap because lets be real shiny things are cool and its an easy post. But stacking is a marathon it's a long term state of mind not just a series of sprints to the next purchase. So today we're talking about something a little more strategic... the gold to silver ratio.
Sounds boring maybe but stick with me.
The ratio is basically how many ounces of silver it takes to buy one ounce of gold. Pretty simple stuff right but the implications are huge if you're actually trying to build wealth and not just collect cool looking discs of metal. Right now the ratio is... well its nuts been hovering in the 80s or 90s to 1 for a while means you need like 85 ounces of silver to get one ounce of gold.
Now why should you care? Because historically that number is way off. For centuries it was closer to 15:1 or 20:1. The planet itself has silver and gold at about a 17:1 ratio in the earth's crust. So when you see a number like 85:1... something is out of whack. To me that screams that one of these assets is seriously undervalued compared to the other. And that asset is clearly silver.
This ain't financial advice... I'm just some dude on the internet who likes metal more than promises from bankers eh. But my thinking goes like this... when the ratio is super high like it is now, it makes more sense for me to be stacking silver. It feels like the coiled spring. You get way more bang for your buck and you're buying the asset that is, by historical standards, on sale.
The long term play for a lot of stackers is that this ratio will eventually revert to the mean. It will come back down. When it drops to say... 40:1 or 50:1... that could be the time you take a chunk of that silver you've been stacking and trade it for gold. You'd be essentially doubling your gold holdings for free just by playing the waiting game and understanding the relationship between the two metals.
Of course the whole market is manipulated to hell by paper contracts and sleaze ball bankers so who knows when or if that will happen. But that's the whole point of physical... you're opting out of their casino. You hold the asset and wait. You can afford to be patient when you have no counterparty risk. The ratio is just another tool in the belt... a way to level up your stack over time without having to put in a single extra dollar. It’s about working smarter not just stacking harder.
Anyway thats my rant... something to chew on while you're looking at your shiny.
My inleo subs can have something like 1080 version with sounds included made! and much more for only 5 HBD!
I am a financial advisor ! If you can't take personal responsibility for you investing, I hate to brake it to ya, but you ain't nothing but a sucka, you supposed to lose your shit.
@bitcoinman's bits of wisdom
- Invest only what you can afford to lose and be mindful of the potential risks.
- Unless you can accept delivery stay away from futures and stick to physical.
- Leverage is a great tool for losing money fast.
- Numismatics for the lows stick to smart stacking baby.
- Be cautious of new schemes in crypto, like ICOs, DeFi, and NFTs, do your research before investing.
BUY/SELL PRECIOUS METALS WITH HBD + PRECIOUS METALS TOOLS AND ACCESSORIES
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Weekly Post Schedule
| Day | Post |
|---|---|
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