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**deackatera** · 11-22-2011, 07:25 PM

Arbitrage is still a great, and honest, way to realize profits from PM's. You buy silver when the ratio is low, and you trade it into gold when the ratio swings high. Then when it swings low you transfer back into silver. Then when it swings high you transfer back into gold.

If you use a brokerage house (instead of a coin dealer) you can oftentimes do this without huge fees. You are eschewing inflation, acquiring PMs, and you realize profits in ounces. Plus, the ratio matters more than the price. Saul Mine had some great posts about it here, but to those who know, arbitrage is nothing new.

Thats what I have been doing. Sold silver for gold at an average of gs-ratio of 35 in April, plus some for $46 an ounce, bought back silver at gs-ratio of 54, and USD at $28 a couple of months ago. I'll trade some more gold into silver if the ratio goes up towards 60. Right now I have about 60% in Silver and 40% in gold. I'll take that up to 80-20 if g/s goes to 60...

One of the good things about living in Istanbul is the small premiums of buying and selling PM's, usually around 2%...

11-22-2011, 07:25 PM	#14
deackatera Join Date Dec 2005 Posts 511 Senior Member	Arbitrage is still a great, and honest, way to realize profits from PM's. You buy silver when the ratio is low, and you trade it into gold when the ratio swings high. Then when it swings low you transfer back into silver. Then when it swings high you transfer back into gold. If you use a brokerage house (instead of a coin dealer) you can oftentimes do this without huge fees. You are eschewing inflation, acquiring PMs, and you realize profits in ounces. Plus, the ratio matters more than the price. Saul Mine had some great posts about it here, but to those who know, arbitrage is nothing new. Thats what I have been doing. Sold silver for gold at an average of gs-ratio of 35 in April, plus some for $46 an ounce, bought back silver at gs-ratio of 54, and USD at $28 a couple of months ago. I'll trade some more gold into silver if the ratio goes up towards 60. Right now I have about 60% in Silver and 40% in gold. I'll take that up to 80-20 if g/s goes to 60... One of the good things about living in Istanbul is the small premiums of buying and selling PM's, usually around 2%...
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