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The Great Gold Silver Swap Of 2018

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Time to swap for some silver.

Say and swap what, Hunter?

Your gold, smart reader.

GOLD! Why in the hell would I want to trade my gold for silver, Hunter?

Here’s why…..

THE SILVER GOLD RATIO

The silver gold ratio (some say gold silver ratio) is the amount of silver it takes to buy one ounce of gold.

To calculate the silver gold ratio, simply take the spot price of gold and divide it by the spot price of silver.

As I write this, the spot price of gold is $1194.

The spot price of silver is about $14.

1194 divided by 14 is roughly 85.2

So the silver gold ratio as of today is 85.2 to 1. That means it takes 85.2 ounces of silver to buy 1 ounce of gold. This is kind of a big deal. More on it in a moment.

Over thousands of years, the silver gold ratio averaged around 15 to 1.

So a silver gold ratio of 85 to 1 means that silver is historically cheap at the moment and has a lot of appreciating to do in order to get back to that historical silver gold ratio average of 15 to 1. Enter the STGR trade.

THE STGR TRADE

The Silver To Gold Ratio Trade is what you want to think about putting into motion when the ratio gets out of whack as it is today.

For the last few decades, the silver to gold ratio has fluctuated between a low of about 40 to 1 and a high of about 85 to 1. So we are right up at the recent historical highs.

Here’s how the STGR trade works…

When the silver to gold ratio drops below around 45 to 1, you sell or swap your silver for gold.

When the silver to gold ratio rises above around 80 to 1 (like it is today), you sell or swap your gold for silver.

What you are doing is essentially trading your silver for gold or gold for silver when they are relatively cheap in terms of each other.

You can make some nice profits and increase the size of your precious metals stack just by putting this trade on autopilot.

How do you swap your gold for silver today?

It is actually pretty damn easy as you are just trading some of your gold for the equivalent dollar amount in silver.

Call up Miles Franklin at 1-800-822-8080 and one of their brokers will walk you through it at no out of pocket cost to you.

Here’s approximately what will happen….

You ship some of your gold to the Miles Franklin warehouse.

Miles Franklin will insure and ship the value of your gold back to you in silver bullion. Or they can store the silver for you in their super secure and world class vaults run by Brinks.

Bam.

As you see in the picture below, at a silver to gold ratio of 84 to 1, you can swap 8 ounces of gold for 582 ounces of silver.

 

This STGR trade is also Tax Loss Eligible.

First of all, to make sure you’re eligible for taking a tax loss on the silver to gold ratio trade, don’t just take my advice, talk to your tax attorney or the precious metals brokers at Miles Franklin can help you out too.

Here’s how you could possibly see a tax break…

In the stock market world there is something known as a “wash sale” rule designed to prevent people from selling stocks at a loss in order to claim a tax deduction on that loss. Basically, you can’t sell a stock for a loss, claim a tax benefit and then buy the same stock back in 30 days.

But wash sale rules do not apply to gold and silver bullion.

So if you sell or “swap” your gold for silver for less than you paid for it, you can treat that loss as a capital loss on your tax return and use it to offset any gains in your investment, stock or real estate etc holdings. The neat thing is that the loss can carry over year after year until you have gains to use it against!

Again, consult with your Miles Franklin broker for the exact strategy.

Oh and one more tax thing….

There is a way to do all of this inside of your IRA for even bigger tax savings but I’m out of time today.

Ok, who am I kidding. I’m not out of time, I’m just a little hungover.

Blonde Czech girls sure can drink vodka late into the night.

Time to leave the bright lights and big city of Chicago for a little R&R in the country.

I promise I’ll go in to adding gold and silver to your IRA in my next article when I’m fully recovered. Pray for me.

Hunter Riley III
Author of the Amazon #1 Best Seller Stack Silver Get Gold
www.StackSilverGetGoldBuyBitcoin.com


Source: https://www.milesfranklin.com/the-great-gold-silver-swap-of-2018/


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