Query for new woried investors

[Robda1986]

I'm genuinely interested in the answers. Say your worried about the drop in spot silver silver has a tenancy of moving violently (from what I've seen +-10% in a week is not too uncommon) are you going to sell now taking the hit? Hold out to get your investment back and sell at the price you paid? sit back and wait it out? Or are you setting a stricked selling price? 

[TommyTwoShots]

Only an idiot would sell with a drop in the silver price 

[Rll1288]

12 minutes ago, Robda1986 said:

I'm genuinely interested in the answers. Say your worried about the drop in spot silver silver has a tenancy of moving violently (from what I've seen +-10% in a week is not too uncommon) are you going to sell now taking the hit? Hold out to get your investment back and sell at the price you paid? sit back and wait it out? Or are you setting a stricked selling price? 

Buy more 🙂

[SilverJacks]

From what I can see, the drop in spot price doesn’t proportionately affect physical silver value.

sure, value goes down, but premiums go up to balance things out a tad.

I could get 2nd hand silver cheaper last year at higher spot price, than I could at times this year with lower spot.

[Gordy]

14 minutes ago, Rll1288 said:

Buy more 🙂

Indeed, but nobody has any haha... have you seen Bleyer's Stock?........

[Rll1288]

Agree... I wish we could get cheaper physical as you still won't get Brit's for under £27.00

1 minute ago, Gordy said:

Indeed, but nobody has any haha... have you seen Bleyer's Stock?........

Yeah I know....

[dicker]

Long term hold - whilst the price of Ag and Au is interesting, I really don't care - I'm in it for the long haul.

Since starting buying, I have sold nothing.

Best

Dicker

[dicker]

Just to add - pound cost averaging works for me - regular investments timed once a month.

Best

Dicker

[Bigmarc]

7 minutes ago, dicker said:

Just to add - pound cost averaging works for me - regular investments timed once a month.

Best

Dicker

Hello dicker 

Do you do pound cost averaging on your whole stack? 

I'm thinking of selling a few bits to start a seller profile on here but am unsure how to account for it. I know it makes me a idiot (Tommytwoshots) but would like another avenue to explore.

Currently I don't have anything other than what I paid for a particular sale, some bought at £10 per Oz all the way up to £25 per Oz. All different grades as well.

What's confusing me is the sell part of pound cost averaging. How does it work when I sell bits at different points in the market?

Or am I over thinking it

 

[dicker]

Hi @Bigmarc

The way I do it is to invest a set amount once a month and just keep doing that regardless of the price of Gold or Silver.

I track price paid against each monthly purchase.

Because I have bought lots of different types of Au and Ag, it is not just bullion - some has a premium i.e. like my QB coins.  So if I were to sell, I would mark up P&L against the individual purchase.

Does that answer the question?

Best

Dicker

[Rll1288]

The way I do it is I capture the price I paid plus the spot price at the time (so I can work out average premiums) for each product type. Then I can work out what my average price paid for that asset is so if you bought 1oz Brit at £10 and another at £25 then your average price for the two would be £17.50 ... Same for 10z, gold etc etc... so you may get to the stage where you have say 500oz of Brits with an average price (inc costs) for each single coin as £17.50 (using the example price) that way I can mark against spot price, as a worse case scenario or what the value of the asset is in the market. so if spot is 17.88 then 38pence profit on each but if market price (including premiums) is £27.00 then profit per coin £9.50.

As said I keep the spot price at the time to work out what premium was but really if (inc costs) I know my overall position per asset then I know where my value is to sell at 🙂

[Rll1288]

2 minutes ago, dicker said:

Hi @Bigmarc

The way I do it is to invest a set amount once a month and just keep doing that regardless of the price of Gold or Silver.

I track price paid against each monthly purchase.

Because I have bought lots of different types of Au and Ag, it is not just bullion - some has a premium i.e. like my QB coins.  So if I were to sell, I would mark up P&L against the individual purchase.

Does that answer the question?

Best

Dicker

On my premium items I do the same... so proof coins, 3G's etc then its what you can make on it... for bullion for stacking its average cost 

[Rll1288]

I have also, on some items, traded in and out to try and improve my average price 🙂 (or make it worse hahah)

[dicker]

I am so awful about knowing when to buy and sell PCA was the lest stressful way to invest.

I do break the rules some times when nice items come up on the forum and I buy on top of my PCA allocation!

Best

Dicker

[TutoredSoup232]

1 hour ago, Rll1288 said:

Agree... I wish we could get cheaper physical as you still won't get Brit's for under £27.00

https://atkinsonsbullion.com/silver/silver-coins/1oz-silver-coins/2021-uk-britannia-1oz-silver-coin-full-tube-of-2 

these worked out as 26.88 each yesterday, 27.47 each today 

[Robda1986]

See what was crossing my mind was say someone paid 35 per once during the hype I'm just curious as to how their going to proceed, assuming they got In because of fomo.

Silver is bound to get back to that level at some point that's almost a given I'm just curious if we'll see a mass of people leaving and items being sold if and when they can get out without taking a hair cut 

[TutoredSoup232]

4 minutes ago, Robda1986 said:

See what was crossing my mind was say someone paid 35 per once during the hype I'm just curious as to how their going to proceed, assuming they got In because of fomo.

Silver is bound to get back to that level at some point that's almost a given I'm just curious if we'll see a mass of people leaving and items being sold if and when they can get out without taking a hair cut 

I reckon as with most investments you'll get those who can't hold their nerve and bail at the first sign of trouble. Maybe also those who bought in and later considered it to be too high a price they paid. I do wonder if and when that will happen too. I'm hoping there's a cheap gold sell off instead 

[Robda1986]

Just hope they don't sell back to the dealers. Some of the buy backs bullion now get are crazy and they'd have paid spot or a little under 

[TutoredSoup232]

I reckon they will, if they did no research beforehand and only listened to those pumpers on youtube. A lot of youtube content creators tell you to go to dealers to sell back your silver rather than forums or even eBay. The same ones who tell you that coin capsules are worthless and damage with not affect the value of your coin, whilst also hiding the fact that many of them deal bullion themselves and know they wouldn't offer a much for scratched/milk spotted coins. 

I had to unsubscribe from one yesterday who didn't appear to be a pumper at first. Until I realised that even after that recent hit to silver and gold he's still out here spouting rubbish about silver shooting to the moon by the end of the year. 

[motorbikez]

Anyone worried about a +/- movement of 10% in a week in any PM shouldn't be buying it in the 1st place.

[Gordy]

1 hour ago, motorbikez said:

Anyone worried about a +/- movement of 10% in a week in any PM shouldn't be buying it in the 1st place.

Exactly, I will buy a coin over spot if I like it as I collect as well as stack and it goes goes into my treasure chest, other coins I will buy 5 or 10 or more if I think I can make a couple of quid on them (silver btw) and any profits make I offset this against the coin I'm keeping and make it as though i paid less for it, always keep a record of prices paid and spot price at the time of purchase so i know what I'm buying and the cost at the time of purchase, I never worry about spot drops as i know what I'm prepared to pay for a certain coin, mind you QB's have been an exception for me as I wanted the full set... but I wont go for two or more sets..  

[Bigmarc]

Can someone please change the name of this thread from "query for new worried investors" to "point a finger and laugh at the new investors".

I read a post a few weeks back, this new member was pleased as punch that he had managed to acquire 200 Oz in a week. If that member was to come to this thread what would he see? 

It's like watching a episode of loose women. New investors have seen there investment fall, fair enough that is the game but do they need to be told only a idiot will sell, just keep buying and don't worry about the price and my favourite, how.does someone proceed after paying £35 per Oz.

It's embarrassing. 

 

 

[CaptCaveMan]

Well I'm one of these 'new investors'!

Am I worried... meh... I'm only making frequent'ish purchases and joined after ownership of 3 ounces.  I'll never realise any monetary gain as it belongs to the kids, I'm simply offering a collection and storage service, that gain is priceless.

I'll be making sure they understand the Excel file, then and current spots, premiums paid etc. so if they decide to eventually sell to fund a life event down the road they should at least break even 😂

 

[ScentSationCandles]

Hold, hold, hold and hold some more and buy whatever you can, even if it drops to a dollar an ounce. (And what a bargain that would be!) In 5 years or less, you'll be glad that you did. You can only lose money if you sell on the dip. 

Caveat: Not a financial adviser. Just personal experience. I'm not sure if it was last year or the year before, but silver dropped from USD19 to 11. Now it's around USD25.

[Gordy]

56 minutes ago, CaptCaveMan said:

Well I'm one of these 'new investors'!

Am I worried... meh... I'm only making frequent'ish purchases and joined after ownership of 3 ounces.  I'll never realise any monetary gain as it belongs to the kids, I'm simply offering a collection and storage service, that gain is priceless.

I'll be making sure they understand the Excel file, then and current spots, premiums paid etc. so if they decide to eventually sell to fund a life event down the road they should at least break even 😂

 

respect buddy, everyone has to start out somewhere and if the point you start means the prices you pay for silver are £35.00 then i guess you need to pay it if you want to get involved, we all started not knowing much but the wisdom and experience grows with each purchase and month that passes by, so what.. you pay over the odds at first and possible make some dodgy decisions but thats how you learn and in the long term you should hopefully recoup and have enough knowledge to make a decent return at some point or even leave a good investment for your kids... perseverence and patience is important and take good advice from here from experienced and intelligent investors.... this site is great to help you learn...