Loading ...The Gold-to-Silver-Ratio
With the thousands of ETFs covering everything from soybeans to dog food to body parts, you would think that someone could create an ETF for the GTSR but the only tried-and-true method of taking the directional risk out of the precious metals at any time in history is when the GTSR is above 80:1. Last week it hit 86:1 and has quickly retraced but any level above 80 has proven to be a superb entry point. The two most liquid ETFs are the SPDR Gold Trust (GLD:US) and the iShares Silver Trust (SLV:US),and both track physical bullion. With GLD closing at $127.75 and SLV closing at $15.80, you can buy 8.08 shares in SLV with one share of GLD. To get the actual 80:1 ratio, you have to own ten (10) SLV for every one (1) GLD you are short. Assuming you are looking at a big dollar trade, you do the following: