Complete hypothetical would you trade gold for silver

[dragonfly5]

So I have a 1 in 5000 chance of winning an ounce of gold this weekend (from a local coin show). Got me to thinking - would I keep it or trade it for an equal value of silver? What are your thoughts? What would you do in the same circumstance?

[KYnyts]

I would keep it. Nothing wrong with hedging

[Mark777]

If I won that gold, I think I would keep it because it would be my lucky piece of gold.

I have actually traded gold for silver because silver was going up like crazy at the time and silver is still predicted to do much better over time than gold.

Silver is testing my patience but when I think of the idiots running the economy 6 feet into the ground, my patience is strengthened. I'm into silver for the long haul because of the fundamentals and can wait out all the bs manipulation done by the Fed and others for well more than a decade.

Hopefully, it won't take that long...so I can retire early and live in an earthly paradise until I get taken to the eternal paradise.

[Honey]

Yep... I would just keep it!!

[SonofYAHWEH]

Keep it for sure!

[II DALTON II]

I'd keep it. It's good to diversify.

[slow to learn]

I would keep it! I think it inportant to own both gold and silver! I am even a fan of copper!

[victor kruger]

keep, its a great portable emergency fund in a very small package, if you get bored with it then flip it later.

[Radocracy]

Keep it. Diversify.

[Dom2012]

i want to trade the other way....when i want out of silver i hope to find a dealer who will swap my silver for gold ;o)

[dragonfly5]

(04-11-2012 02:32 PM)Dom2012 Wrote:  i want to trade the other way....when i want out of silver i hope to find a dealer who will swap my silver for gold ;o)

That would be great - but for now I think it's more hypothetical than my chances of winning that piece of gold . . . .

[Mojofabulous]

I'm trying to do half/half gold/silver and right now I need to catch my gold stock up so I'd keep it :-)

[agsilverbear]

I would trade it for silver because silver has more upside potential, to say the least. Good luck, hope you win!

[AgShaman]

I think there's a possibility of an even wider gap developing between gold and silver. Gold is a bigger market than silver. The FED is funneling capital into the stock market and keeping the equities market inflated....but why....and for how much longer?

Stackers within the proletariat classes should recognize that they do not represent the bulk of PM investors. There are many different types of people invested in physical gold and silver...as well as paper PM vehicles with plenty of bets at other casinos...including margined trading accounts that have their capital spread "thin to win" (read: ripe n ready for a good beating). These "other" types have been known to divest themselves of their various gold and silver holdings in an effort to stave off the destruction of their accounts not related to PM's. They were bred in the schools of diversification....most often the ones that teach PM's deserve only a 10-15% allocation of total net assets and "worth"....which is then to be used as a backstop for financial calamity. A collapse in markets....triggered by the bond or stock market could cascade the dominos....where the sellers cannot find buyers for the other side of the trade. The FED....IMO...will be OTL during this event...and by purposeful design. They will be like Carl Speckler in Caddyshack during the thunderstorm....setting down the bag of clubs on the 18th green and sneeking off, leaving the Reverend lay helpless, twitching like the electrocuted fish outta water.

Don't forget....Wall St. has for decades, embraced the culture of reckless gambling without any sort of ethics. It is who and what they are by definition at their core....unconflicted in their ethos of the soul-less conscious, devoid of any remorse....and forever chasing the next trade to fuel their egos and power source their self aggrandizement. It hasn't even been 2 decades since Nick L. crashed the UK's oldest bank with just over a billion in bad bets on the futures market. Now these investment bankers and hedge funds are playing with much more leverage these days....since the govt. is "positioned" to always bail them out. They don't learn from their mistakes...they alter the rules instead. The destruction of all markets is looking like a foregone conclusion at this juncture....and preparing for it would be wise, considering 2008 deserves to be revisited, based upon the lack of any healthy change in the financial landscape.

Election year BS and TBTF Bank balance sheet restructuring would be my guess. The taxpayer always gets to play the bagholder in a market crash. Having some gold could be both a stack hedge device and another opp to get free silver. Should the markets implode, it's conceivable that the GSR blows well north of it's current setting. Those that are not "waiting to pounce" with some cash missiles aimed at more physical silver could in essence....trade some gold for silver at the unfolding of such a scenerio....then wait for PM's to recover from the "flight to liquidity"....and the GSR to re-index accordingly. If you don't have the cash to take advantage of such an opportunity....gold could represent a back-up plan.

I'll be keeping some gold to hedge my stack of silver....but have no qualms about trading it off should the GSR revisit 80 or more.

Even if you don't "win" the gold....having some in your stack is a sound strategy. There's a specific reason it's stored in vaults by the Earth's landlords.

In the future.....getting some more gold in your stack should prove to be a free endeavor....and cost you nothing but patience.

Become your own bank..."Stash n Stockpile Weapons of Stack Construction!"

[dragonfly5]

So it remains hypothetical - didn't win. Somebody out there is 1 oz richer in free gold. For now I will try to add to my humble silver stacks.

[Viper_99]

Too bad - if I won I would have keep it! I don't have gold so it would be a start for me!

[dave606]

I would keep it. It was luck that you won it and chances are lucky that you keep it. I would wait until the gold to silver price got to a ridiculous number before i would even consider it.

[freesk8]

Right now, the gold/silver ratio is about 53, which is near the high end of its range.
It is good to have a little of both, but if you already have "enough" gold (is that possible?) and the transaction costs are low, it probably makes sense to trade it for some silver.
Maybe a local shop would give you a good deal on this?