1 of 14

Precious Metals Investing

Strategy #1

Karl

Ushanka.us

2 of 14

Housekeeping

This is NOT advice - It Is Research

Do Your Own Homework!

​

Key Word: “Investing”

Not Stacking, End of the World, or Collapse

3 of 14

Goal:

Find a Silver-to-Gold ratio trading strategy that increases wealth. The strategy will trade silver for gold when the ratio hits a low target, and then trades the gold for silver when the ratio hits a high target. The ideal strategy will trigger 1 trade a year, plus/minus 1.

4 of 14

Data - 10 Years: Jan04 to Dec13

My source data is the Perth Mint Spot, USD, Average Bid, first trading day of the month.

​

All calculations are based on spot prices. Physical premiums (or paper ETF trade fees) were not calculated.

5 of 14

Play The Ratio

Average Silver:Gold Ratio (10yr): 57.9:1

​

Strategy #1 Ratio Triggers:

Silver for gold trigger: 50:1

Gold for silver trigger: 75:1

​

​

6 of 14

Investment Scenario

Obama Cuss Jar - Small Amounts

Investor starts with $1000

Investor adds $100/month

Investor Accumulates Cash Until Trigger

Total Invested: $12,900

Ten Year Exit Strategy

​

7 of 14

Strategy #1 Lessons Learned

You would have made more money using this strategy over the last ten years than if you had invested your cash each month into Silver or Gold and held.

​

Setting a trade/year goal is wrong.

8 of 14

Strategy #1 - Trades

The triggers for this strategy resulted in three trades:

May 2006 - Gold, 5.8oz, 48:1

December 2008 - Silver, 777oz, 81:1

December 2010 - Gold, 17.4oz, 50:1

9 of 14

Strategy #1 - Results

Portfolio Cash on Hand: $3,600

Portfolio Metals on Hand: 17.4oz Gold

Portfolio Value: $25,251.64

ROI: 95.75%

10 of 14

Comparison - “Stacking”

Silver Purchased Monthly

$20,749

ROI: 60.85%

Gold Purchased Monthly

$21,837

ROI: 69.28%

11 of 14

My Obama Cuss Jar Strategy

I have not committed to a ratio-trading strategy yet.

​

I will continue to buy tubes of Silver when cash allows.

12 of 14

Be Informed

MF Global

Cyprus

QE

​

Argentina

Turkey

HSBC Bank

MyRA

13 of 14

Ushanka Tip

YouTube: TheMicMac88

14 of 14

Analysis - Next Steps

Calculate Trade Costs - ETF and Physical

Add Physical Silver Limits/Accumulate Gold

Calculate for Inflation

​

Other Ideas?