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How Will I Know When To Sell My Gold?
NEVER sell your gold because you want to hold it for the rest of your life and pass it on to your grandchildren.
Or
Sell your gold NOW (big mistake – my opinion) if you believe that gold is in a bubble or never should have been bought (as per “gold-bashers” Warren Buffett and Charlie Munger).
Most of us will sell sometime between now and never. What is an objective method to determine when to sell?
Technical ratios at which it might be sensible to sell some of your gold
Sell some gold when the gold to silver ratio drops down to around 15 to 1. The gold to silver ratio is currently about 51 to 1. When gold and silver prices have both risen beyond all typical expectations, the ratio will probably drop to between 10 and 20 to 1. The ratio was about 17 to 1 at the bubble peak in 1980.
Sell some gold when the Dow Jones Industrial Average (DOW) ratio to gold (DOW/Gold) has dropped to near 1 to 1. The ratio is currently about 7.5 to 1. The ratio could reach 1 to 1, for example, if the Dow were priced at 10,000 and gold was selling for $10,000 per ounce. At the peak of the 1980 gold bubble, the ratio was approximately 1 to 1.
Sell some gold when the gold to crude oil ratio rises to perhaps 30 to 1. For example, if crude oil is priced at $300 per barrel and gold is priced at $9,000, that is a 30 to 1 ratio. In 1980 the peak ratio was about 25 to 1.
Sell some gold when you can pay off the entire mortgage on your house with 10 to 20 ounces of gold.
(I suggest you only sell “some” of your gold, not all of it, because it is always a good idea to keep some “real money” and not be utterly dependent upon unbacked paper currency.)
More: http://www.thedailysheeple.com/how-will-…old_122012
2012-12-06 17:23:01
Source: http://yeoldefalseflag.com/thread-how-will-i-know-when-to-sell-my-gold
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