Well yesterday I read a post from my stacking buddy , he was talking about flip sliver, basically cheap silver or should a say low premium silver, used to swap when the silver to gold ratio corrects.
I wanted to take this topic a little deeper, see there are a lot of new stackers here at #steemsilvergold. Some of them may not understand the the ratio game and trust me you need to understand how it works.
Now in the post we will not talk about price, see price doesn't matter when you are dealing in ratios. Plus we all know the price is not correct anyways.
So lets get started, right now the silver to gold ratio is sitting at or about 80 oz of silver to 1 oz of gold. So basically this means that it takes 80 oz of silver to buy 1 oz of gold.
So for easy math lets base this off of someone owing 1000 oz of silver.
1st thing you have to do is have a realistic ratio picked that you are willing to accept. For me it is 40 oz of silver to 1 oz of gold. Once this ratio is reached I will sell half of my silver and buy gold. So once it hits 40 to 1 I would be able to trade 500 oz of silver for 12.5 oz of gold. Which my new stack totals would be, 500 oz of silver and 12.5 oz of gold. Some people feel like it will be a lower ratio than 40 to 1, some even think you could see 10 to 1 or even 1 to 1.
So your still stacking and life goes on. Well all of sudden the ratio starts going back up. Lets say it takes a few months or even a year to get back to a 80 to 1 ratio.
At this time I would sell my 12.5 oz of gold and buy 1000 oz of silver with it (80 to 1 ratio) so now my stack total would look like this, 1500 oz of silver and 0 oz of gold. So playing the ratio just allowed me to add 500 oz of silver to my stack at no out of pocket expense.
At the end of the day, the size of your stack does matter, so educated yourself as much as you can and figure out how to add free oz to your stack.
For more information about gold and silver, visit us at #steemsilvergold