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Thread: Converting Silver to Gold Questions

  1. #1

    Default Converting Silver to Gold Questions

    Hello everyone, I'm back, I used to be Silverado07, but I saw a 07Silverado so I changed my profile. I miss participating in the Silver thread, and I'm looking forward to getting back in the game. My question pertains to converting silver to Gold. I'm heavy in silver and thinking about trading some ASE or Morgan Dollars for some 1/10 or 1/4 oz fractional gold coinage. My concern's are the ratio was just 72-1, just in the last couple weeks and about 65-1 and it's a bad time with ratio over 60-1 to convert. From my observations in the past, silver seems to be much more volatile than gold. Like in 08 silver went from $22 to $9. Gold did not correct near as much. So if we take a hit, I'm looking to be a little more safeguarded. What do you guys think? To convert or not convert, and if so either Morgans or ASE's. What would be a good trade for a 1/10 or 1/4oz of gold, and go for numis in case gold takes a hit or just bullion coins.

  2. #2

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    I guess I would trade the SAEs and keep the Morgans. They are both common, but personally I'll take the Morgans.

    Thx
    http://i573.photobucket.com/albums/ss171/KitcoKontests/Trophies/Single%20Trophies/SilverTrophy1.jpg

  3. #3

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    Totally non expert opinion here, but as long as the GSR is above 60, I think I'd keep my silver. If you'll feel safer in gold, or just want to diversify, I'd just keep watching that ratio for the recent trend to bottom out and then pull the switch so you'll get to keep more of your silver when you trade out.

    And agreed with above...keep the morgans and dump the ASE's. If you're just doing a straight GSR trade with someone you'll lose the higher premiums found in the Morgans if you get rid of them in a spot trade. If you have any junk or generic trade it before either.
    To err is human, to ARGH! is pirate.

  4. #4
    Join Date
    Mar 2008
    Posts
    134

    Default

    I would advise converting on the margin - put new monies into gold, keep existing silver until the ratio is favourable, 50-55:1 would be reasonable.

  5. #5

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    OK now my question. Who do you trade silver into gold with and what is the traders fee?

  6. #6

    Default

    Quote Originally Posted by jamesstacker View Post
    OK now my question. Who do you trade silver into gold with and what is the traders fee?
    This is going on right here on this very board.

    Members are trading with each other and posting their terms. If both parties agree then a trade is completed.

    You can also trade with people on Craigslist or your local dealer. The terms will always have to be negotiated.
    I was driving across the burning desert; When I spotted six jet planes; Leaving six white vapor trails across the bleak terrain; It was the hexagram of the heavens; it was the strings of my guitar; Amelia, it was just a false alarm. --Joni Mitchell, Amelia

    http://www.youtube.com/watch?v=N6d2RG2Rl64

  7. #7

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    It can sometimes be tricky to find someone to trade with. When GSR is really high or really low, it's harder because everyone is trying to move the same direction. In the mid territories it's a bit easier because folks with different strategies may be moving in different directions.
    I've had luck with Craigslist, just never agree to meet at someone's house, or a hotel room or something. Most people are honest and safe, but stick with public places in daylight hours lest you meet the one exception.
    In person also saves shipping costs and worries too.
    To err is human, to ARGH! is pirate.

  8. #8

    Default

    Well, I love the look of Morgans. However, I don't think common coins will ever become oh so valuable. I would get rid of them and keep the ASE for the trade. You will have more silver that way. I am not sure this is right but it is what I am doing right now. Selling Morgans and stacking ASE and AGE.
    “Do or do not... there is no try.” - Yoda

    You have to love Lunar Snake Coins.

  9. #9

    Smile Convert for the short term

    We had a position in Gold money.com in silver and gold. In the fall of 2009 i converted our silver into gold.
    I don't believe Silver has as much short term upside as gold.
    I think much of global silver is tied to global mining that includes copper.
    If you want a upside in silver buy silver rounds.
    Mine have not done as well as my gold.

  10. #10

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    Quote Originally Posted by Mtforpar View Post
    Well, I love the look of Morgans. However, I don't think common coins will ever become oh so valuable. I would get rid of them and keep the ASE for the trade. You will have more silver that way. I am not sure this is right but it is what I am doing right now. Selling Morgans and stacking ASE and AGE.
    A non-rare, non-cull Morgan will typically sell for at most a dollar or two less than an ASE...and often more than an ASE. Considering they are only .771 ounces of silver though, they seem to keep a much higher premium.

    For the sake of easy math, let's say that GSR was 77:1. It would take 77 eagles to get an ounce of gold, but 100 morgans to do so. Those hundred morgans would be worth a lot more in FRNs than an ounce of gold costs. You'd be better selling the number needed for FRNs and buying the gold than just doing a simple trade. You'd be losing all the premium otherwise.

    Of course, that is true to a lessor extent for the ASEs. As I said before, keep the generic stuff for trading GSR. Losing premiums over the long run can hurt your stack.
    To err is human, to ARGH! is pirate.

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