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    Rebalancing - Ditching some silver for gold bars?

    Key Takeaways
    • Alright, so I’m looking at my portfolio lately and thinking it might be time for a bit of a rebalance, especially on the precious metals front.
    • I've got around $150k tied up in physical metals right now, with about $90k of that in silver.
    • As a former bank manager in Portland, I’ve seen enough cycles to know that diversification isn't just a buzzword, it’s how you sleep at night.
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    Alright, so I’m looking at my portfolio lately and thinking it might be time for a bit of a rebalance, especially on the precious metals front. I went pretty heavy into silver bars (mostly 10oz and 100oz JM Bullions), maybe a little too heavy, back when everyone was screaming about the gold-silver ratio being insane. I've got around $150k tied up in physical metals right now, with about $90k of that in silver. Now, I’m wondering if it's smart to sell off, say, a good chunk ($30k-$40k worth) of those silver bars and roll that into some 1 oz or 10 oz gold bars instead for my Gold IRA.

    My reasoning (and tell me if I’m off base here) is that while I love silver for its industrial applications and the potential for a bigger percentage swing, gold feels like the more stable, truly foundational hedge, especially when the global economy looks shakier than a Jenga tower after a toddler’s gone at it. As a former bank manager in Portland, I’ve seen enough cycles to know that diversification isn't just a buzzword, it’s how you sleep at night. While I'm pretty comfortable with my overall asset allocation (plenty in real estate here in the PNW and a decent chunk in blue-chip stocks), the metals side feels a little top-heavy in one direction.

    I know some of you are mega silver bulls, and I totally get it – I’m still a believer long-term. But is there a point where you just have 'too much' of a good thing, even in precious metals? My Gold IRA has a decent mix of coins and smaller bars but I want to add some larger denominations here. What are your thoughts on cashing out some silver gains (or at least minimizing potential losses if it dips) to pick up more gold at current prices? Anyone done a similar rebalance recently, and if so, any regrets or happy outcomes?

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    4 comments

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    Best Answer▲ 10 upvotes
    M
    michelle_collins🏆Advanced (250-500k)

    Totally get this! I did something similar a few years back. The gold-silver ratio hype got me too, and I loaded up on silver thinking it was a "no-brainer." Ended up feeling a bit top-heavy on the silver side, so I slowly started converting some of those 10oz bars into fractional gold. No regrets, feels much more balanced now.

    Comments (4)

    10
    michelle_collins🏆Advanced (250-500k)Real Investorabout 2 months ago

    Totally get this! I did something similar a few years back. The gold-silver ratio hype got me too, and I loaded up on silver thinking it was a "no-brainer." Ended up feeling a bit top-heavy on the silver side, so I slowly started converting some of those 10oz bars into fractional gold. No regrets, feels much more balanced now.

    10
    richard_garcia👑Elite (1m-5m)Real Investorabout 2 months ago

    Hey, interesting thought process. When you say "went pretty heavy into silver bars," are we talking like, what percentage of your total precious metals holdings ended up being silver back then? Just curious about the scale.

    3
    susan_clark💰Established (100-250k)Real Investorabout 2 months ago

    Interesting thought process, but I'm not sure I'd be so quick to ditch silver right now. The gold-silver ratio is still pretty stretched historically, and while gold has been on a tear, silver often plays catch-up in these kinds of environments. You might be selling low on silver just as it's about to make a move. Plus, 10oz and 100oz bars aren't exactly small change, so the premiums on selling and then buying gold might eat into any potential gains.

    2
    dorothy_lopez💰Established (100-250k)Real Investorabout 2 months ago

    Hey, totally get the rebalancing urge. Been there! When you're thinking about moving from silver to gold, especially larger bars, don't forget to factor in the premiums. Sometimes you can get a better deal on premiums with fractional gold coins or even smaller 1oz bars compared to the really big gold bars, depending on the dealer and current market. Might be worth checking out APMEX's spot price charts to get a feel for how premiums are looking across different weights right now. Good luck with the rebalance!

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