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Smart Switch – switch between gold and silver & make the best of both worlds

4 Mins read

Goldlane has always been a tech-focussed company. We want our users to make an informed decision before investing in gold. With ‘Statistics’ we helped users to understand at what price they had bought and how much is the worth of their gold or silver NOW. You may create an endless number of price notifications using the ‘Price alert’ function, and the app will notify you when your desired price is achieved.And now with the new ‘Smart Switch’ feature you can easily swap between gold and silver holdings. Learn more about why to use, how to use and when to use this feature in this article.

Discover the benefits of gold & silver

Many investors are seeking for strategies to brace for future uncertainty as we approach a post-pandemic era. Investing in precious metals such as gold and silver may be a solution for some.

Both metals may provide a hedge to varied degrees in the event of a prospective economic and/or financial slump, as well as during prolonged periods of increasing inflation. Understanding how the two metals are used, as well as their economic sensitivity and technical properties, can help you decide which metal is ideal for your portfolio. And if you are unsure of then you can invest in one and switch to other metal, if needed in future.

Silver might become more intertwined with the global economy.

Heavy industry and high technology consume half of all silver, which includes smartphones, tablets, automotive electrical systems, solar-panel cells, and a variety of other goods and uses. As a result, silver is more susceptible to economic fluctuations than gold, which has limited use outside of jewellery and investment. When economies expand, demand for silver tends to rise.

Silver Could Be a Better Inflation Hedging Instrument

When U.S. inflation has risen in the past, both gold and silver have performed well, owing to the fact that growing costs of goods and services frequently correlate with a weaker currency. Because gold and silver are both priced in US dollars, as the value of the dollar falls, the cost of acquiring them in other currencies falls. With increasing inflation and a declining currency, silver tends to climb more than gold due to stronger industrial demand.

Silver is more volatile than gold in terms of price fluctuations

On any one day, the volatility of silver prices might be two to three times that of gold. While traders may gain, controlling portfolio risk may be difficult with such volatility. Nicholas Thompson, who handles Morgan Stanley’s physical precious metals portfolio for Wealth Management customers, says, “That volatility can translate to higher short-term profits, but it often carries the risk of greater downside.”

Gold Has Proved to Be a More Effective Diversifier Than Silver.

Silver has a relatively weak positive correlation to stocks, bonds, and commodities, making it a useful portfolio diversifier. Gold, on the other hand, is thought to be a more potent diversifier. Gold has consistently been uncorrelated with equities and has very low correlations with other main asset classes, and for good reason: unlike silver and industrial base metals, gold is less influenced by economic downturns due to its limited industrial applications.

Currently, silver is less expensive than gold.

Silver is far less expensive than gold, making it more accessible to individual investors. Silver may be a better investment choice for people who are just starting to construct their portfolios due to its lower cost.

Gold- Silver ratio

Gold and silver investors have utilised the gold-silver ratio to evaluate the value of these precious metals. The price of gold is compared to the price of silver using this ratio, which is based on the notion that their historical prices follow predictable patterns.

For example, if the gold-silver ratio is 10-to-1, gold is now worth 10 times what silver is worth. According to Provident Metals, before the 1900s, this ratio remained relatively constant at 16-to-1 throughout history, implying that if an ounce of silver was worth $5, the price of gold would be $80 per ounce.

Today, this ratio indicates that silver’s price has a lot of space to grow. The ratio has been as high as 120-to-1 and as low as 64-to-1 in the previous five years, according to BullionByPost, with the current ratio hanging at 68-to-1. Many believe that the astronomically high ratio means that silver’s price has space to soar considerably higher, eventually reverting to the 16-to-1 ratio that it has held for almost a century.

Learn how to trade with this new feature

GoldLane is the first app that allows you to transition from gold to silver with a single swipe. It’s free and works on both Android and iOS smartphones. With just one click, you can manage your gold and silver portfolio. GoldLane allows you to trade safely and intuitively on the move, allowing you to benefit from the stability of gold while still earning from the volatility of silver. You may easily switch between holding gold and silver on your phone at any moment. You can move to silver if gold prices are falling while silver prices are rising. After the silver surge is over, you can change it back.

switch between gold and silver
This table shows the rolling returns on gold and silver for past9 years with maximum and minimum rolling returns

By looking at the table we understand that the returns given by silver are always higher than gold. Looking at the current high gold:silver ratio, the % growth of silver price is higher than gold. Thus silver has more growth opportunity. As silver is cheaper than gold too, you can buy same amount of silver equal to gold you wish to buy and take advantage of high returns of silver. Once the silver rally is over switch to gold, encash or exchange or buy gold coins. Experienced gold and silver traders employ this method. With GoldLane you can take advantage of this strategy.

Get started with Smart Switch

Step 1:

Open Home screen and click on ‘Switch’ in the features panel

switch between gold and silver

Step 2:

Select the precious metal that you have – gold or silver

switch between gold and silver

Step 3:

Select % of that precious metal you want to convert to another precious metal. E.g. select 50% of the gold from your gold balance and the app will show how much silver will you receive after switch.

switch between gold and silver
switch between gold and silver
switch between gold and silver

Frequently Asked Questions

How smart switch works?

With smart switch you can easily convert your gold holding to silver and your silver holdings to gold, with just one click.

What is minimum quantity of Gold/Silver required for switch?

The Minimum quantity of Gold required is 0.1 gms and for silver is 0.5 gms.

Is there any limit to the number of times I can use smart switch?

No, you can use smart switch for unlimited number of times

Is there any transaction cost while using smart switch?

No, there is no extra transaction cost apart from GST

How much time it will take to convert once I initiate switch?

Your metal will be converted to the other immediately after you click the switch button

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