Exit strategy (revisited)

[Roy]

I created a post with the same title many years ago but, like most things, one has to adapt and reconsider the endgame.

I divide my time between Europe and Asia and I don't carry my PMs with me, they are secured in a safety deposit box in London.

Now this year is an unusual year, unprecedented one might say, but it has thrown up a few problems for me.

1: I'm in Asia and I am not allowed to travel to the UK.

2: The gold price has risen considerably and I am not able to take advantage of this. I cannot retrieve my gold and trade/sell.

3: The 'emergency' PMs I store with friends/family: One person is elderly and is told not to venture outdoors and the other location has had its Post Office shut for nearly 8 weeks as its elderly owners self isolate.

Just when you think you've secured your today with safe yesterdays*

It came to my attention that throughout all of this, the stock markets were still trading and accessible and vaulting businesses were still 'Open as usual'.

I could buy, sell, trade PMs almost 24/7 from my armchair. No flights, rude people or bad food.

 

My strategy has therefore changed. Indeed, necessity is the Mother of invention. Physical holdings have their limitations!

If you don't hold it, you can't sell it.

 

*a pint if you can identify the origin of my paraphrasis

[sovereignsteve]

No problem Roy. Just give me all the details and I'll pop down to London to retrieve all your coins.

You can sell them and I'll send them out for you!

It'll only cost you a pint😉

[Tn21]

If your content with your physical holdings then the vaulting service provides a viable option.

Going to the post office during the last few months has been absurd, the arm chair sounds really appealing. Service on the whole I think by Royal Mail has been good. They get a lot of stick but they were amongst a few who were 'still working.'

The change of strategy is it only temporary @Roy? 

 

 

 

[Abyss]

Unprecedented times but you can always hedge your PM position or part of it in the paper markets. What bullion dealers do when they buy inventory from mints/public regardless price PM goes up or down they maintain margins.

On the flip side not having access to your physical PMs meant not been able to make any decisions to sell any of it and this worked out in your favour as PM price continued to rise. Roy you are taking full advantage of this bull market sitting tight holding onto your PMs.

[Roy]

Sorry, the confusion is all my doing.

I titled the thread 'Exit strategy' when it really should've been 'Changing strategy', as @Tn21 says.

I'm a gold bug and always bullish on gold but I keep a certain amount of bullion on hand to make money. Like most folk on here, make a bit here, a bit there and it will afford you something a little better, a little cheaper. I sold bullion Sovs and Beasts back in March to cover a couple of Lion Dollars 😃

I still want to trade precious metals but trading in physical is not practical for me in the current climate. Hence my foray into digital/paper assets and vaulting.

50 minutes ago, Abyss said:

On the flip side not having access to your physical PMs meant not been able to make any decisions to sell any of it and this worked out in your favour as PM price continued to rise. Roy you are taking full advantage of this bull market sitting tight holding onto your PMs.

It certainly has! 

3 Feb:  £1213 oz

3 Aug:  £1511 oz

[richatthecroft]

On 01/08/2020 at 16:35, Roy said:

2: The gold price has risen considerably and I am not able to take advantage of this. I cannot retrieve my gold and trade/sell.

Good morning Roy.  

I’m pretty sure that if you wanted to sell any of your coins, particularly collector coins,  that some people here would be prepared to secure the price and pay you now and await delivery later.

It wasn’t too long ago that we all bought from you on this premise.  The Pandemic might slow things down somewhat, but your reputation endures as a well established and trusted Forum member 😃 

 

[Roy]

@richatthecroft, that's a jolly nice thing to say. Thank you 😊

I hope I continue to deserve such praise.