Roughly one year ago (April 27, 2011 to be precise) I wrote Taking Silver Profits – Swapping Silver for Gold

I have held physical silver and gold investments continuously for 5 years, and on and off before that. Today I cashed out of silver, trading it for an equal dollar value of gold.

For the sake of full disclosure, my physical precious metals holdings are now entirely at GoldMoney and I have an affiliate relationship with them.

As a result of that relationship, I will likely be back in silver soon, but in small amounts, and hopefully at decreasing prices. If silver crashes, I will consider switching a considerable percentage of my gold for an equal dollar value of silver.

Given the unstable nature of parabolic and hyperbolic spikes, I believe the price of silver is highly likely to revisit the low $20’s at some point.I see no point in chasing silver higher here. Moreover, except for pure speculation, I see little reason to even hold silver in this spike.

Both gold and silver seem susceptible to a pullback, but especially silver because of the unstable nature of its advance. For now, I will take my chances with gold.

Silver never got to the low 20’s. Perhaps it does and perhaps it doesn’t. Since gold was roughly $1500 and silver roughly $46 at the time I made the swap, It’s fair to say I am happy with the trade.

I did about 1/3 of what I would like to do.

Bear in mind this trade is not a recommendation. Indeed, I think I am early. If so, and if silver makes an excursion to the low $20’s (perhaps even the mid-20’s) I am likely to swap a lot more. If not, and silver blasts higher, I am back in.

As noted above: For the sake of full disclosure, my physical precious metals holdings are now entirely at GoldMoney and I have an affiliate relationship with them.

If anyone wants information about GoldMoney or investing in physical gold and silver in general, please Email Mish

Mike “Mish” Shedlock
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