Swapping

Gold for Silver & Silver for Gold

Physical precious metals are financial insurance.  This means they are static. You buy them and wait for them to go up.  And you wait – and wait.

Yes, they require patience, but they don’t have to remain static.  You can make them an active investment, if you want to. We’re going to explain how, but first, why you and do this.

Strip the human drama from the epic saga of gold and silver throughout history and you’re left with, well, math.  You can boil gold and silver’s relationship down to numbers. Those numbers are the gold/silver ratio, which is simply the price of old divided by the price of silver.

Until 1872, when silver was demonetized (removed as a reserve currency) in the United States, the gold/silver ratio never rose above 16:1.  Sixteen ounces of silver were said to exist for every one ounce of gold – the world over. Alas, when silver was demonetized, the ratio climbed and climbed.  Since that time, when gold and silver are in a long-term downtrend (usually lasting 20 years or so) the ratio has climbed as high as 100:1.

When gold and silver enter long term uptrends (lasting approximately 20 years) the ratio always returns to its historic level of 16:1.  

So silver always outperforms gold in bull markets.  This means silver is greatly undervalued and is why we recommend you purchase more silver than gold.

  • HOW SWAPPING FITS IN

    Markets never move in a straight line.  If the gold/silver ratio began a bull market with a ratio of 100:1, the ratio will not move in a straight line to 16:1 over the 20-year course of that market.  There are always peaks and valleys. In those peaks and valleys our customers swap between gold and silver to significantly increase the number of ounces they hold without buying any more coins or bars.  

    When the ratio has a short-term peak, and silver is cheap in terms of gold, we swap from gold to silver.

    When the ratio bottoms in a valley, and gold is cheap in terms of silver, we swap from silver to gold.

    Rinse and repeat all the way down to 16:1 ratio.

  • HOW DOES IT WORK?

    Just like when you sell to us.  

    We write an order on the phone and tell you where and how to ship.

    When your coins arrive, those you swapped for are immediately shipped to you.

    The process normally takes no longer than 1 month, usually it’s 3 weeks.

  • WHAT ARE YOUR COSTS?

    This is not a like-kind transaction and is subject to capital gains. We never recommend swapping until the gain in ounces far exceeds your tax and shipping costs.

    We charge your regular commission rate on one side of the swap only.  

    You will pay shipping to get your coins to us.  Call if you’d like an estimate based on what you want to swap.  Usually you’ll be surprised by how little it’ll cost you.

  • IMPORTANT DETAILS

    Dollar values of gold and silver are not the focus when swapping. We are concerned with ounces gained because it’s ounces, afterall, that pay dollars when you finally sell your precious metals.

    Your swapping gain is realized after two swaps. Say you start with gold, you wouldn’t realize your gain until you swap from gold to silver and again, once the ratio changes, back from silver and into gold.

    Swapping opportunities are not a regular occurence. We’ve seen chances to swap as little as a few months apart and as great as several years.

    You are free to use this strategy with any dealer you choose. It is not proprietary information. Just make sure you know exactly what they’re charging you and that they’re not charging a commission on both sides of the swap. To the best of our knowledge, no dealer in the country executes swaps at the low cost we do.

We guarantee a completely secure transaction - every time.