Exit strategies?

[Bigmarc]

After the COVID drama when the premiums were going crazy I cleared out 20% ish of my silver. On a personal level I was pleased with my decision. Unfortunately I have been sitting on the cash waiting for a sub £15 to re stock but even though it came close it never got there. 

Moving forward I have decided to cash out in various stages from £22 per Oz upwards. I will leave my digital holdings until last and leave enough silver in my possession to warrant me being a stacker. 

Just wondering if anyone has thought about how they are going to take profit or grow their stack if we surpass our 10 year high?

[Stuntman]

I have no plans to cash out of my physical silver, but that's only because it's in my collection rather than my stack.  I actually gave some of it away last year to someone who would cherish it.

Regarding my ETF holdings - I will probably sell half my total holding if spot gets to £25, and then I will take a view on the rest.  I think I'm invested at an average of about £15.

Edit: the average purchase price of my physical silver is about £25.70 and represents about 110 oz.  But all bought new from UK dealers and the prices include VAT and delivery.  So definitely still in the realms of a pleasurable hobby rather than a moneymaking scheme!

Edited January 3, 2023 by Stuntman
Realised I hadn't included 3 oz in the denominator!

[ZRPMs]

I don't have a defined exit plan as such. I'm still in my accumulation phase. I have however moved more on to the gold side than silver, I currently have about 12 times more silver than gold in weight, but I'm aiming for only about 10 times.

I have tended to sell items as I've gone along that have done particularly well just to take a bit of profit but usually as I've found something a bit cheaper to replace or increase my metal weight. I like my bullion sovereigns but occasionally I manage to pick up some thing a bit nicer boxed with a C.O.A. These I normally keep an eye on the resale price and these usually help get more sovereigns. 

The final phase or exit would be in my retirement and I think the idea is to sell a bit at a time just to top up the kitty before its needed rather than as its needed. Only so I don't have to fire sell. 

[Roy]

My physical silver owes me around £100 an ounce, so any 'exit' strategy there would have to be discussed with a proctologist.

Fortunately, my vaulted holdings are in the black and even with vaulting charges I seem to be able to turn a silver shilling, so to speak.

All told, a poor investment decision and with the discovery of milk spots, the silver collector in me has passed on. 

[Anteater]

5 minutes ago, Roy said:

My physical silver owes me around £100 an ounce, so any 'exit' strategy there would have to be discussed with a proctologist.

Is that bullion, or numismatic/collector value? (I don't think spot's every been anything close to £100?) Or are you accounting to the opportunity cost of buying bitcoin at the right time?

[Roy]

18 minutes ago, Anteater said:

Is that bullion, or numismatic/collector value?

It's the same, isn't it? 😊

RM silver proof coins 😭

[Anteater]

1 minute ago, Roy said:

It's the same, isn't it? 😊

RM silver proof coins 😭

Could have been worse. Could have been NFTs.

[James32]

33 minutes ago, Roy said:

My physical silver owes me around £100 an ounce

Wisdom is so wasted on the old bruv

[Roy]

Fortunately, I'm too old to understand them so have been excused.

I do have a bit of BTC left though and, like silver, I'm still howling at the moon.

[Roy]

Just now, James32 said:

Wisdom is so wasted on the old bruv

I could do you a good deal? 😇

I might turn it in colloidal silver and piss it up the wall.

[Anteater]

I don't really have an exit strategy per se. My gold is a grab-and-run backup plan for things that will probably never happen.

My silver is all the fault of this forum It's a slight hedge against increased commodity prices due to eg break-downs in global trade. But mostly it's shiny and gives me something to play with without getting the gold out. And I just like the idea of having some variety in transportable non-fiat assets.

I don't expect to net* dispose of either unless:

- things get very bad for me personally;

- things get bad for the world (or at least my part of it); or

- silver goes to the moooooooooooon...

 

* I do expect to sell/trade some stuff but not to make a net reduction in holdings.

Edited January 4, 2023 by Anteater

[James32]

1 minute ago, Roy said:

Fortunately, I'm too old to understand them so have been excused.

I do have a bit of BTC left though and, like silver, I'm still howling at the moon.

I'm not laughing at you Roy, I'm laughing with you "nervously"

Honestly babes...you will get out ok. If the manipulators let go of the silver price and you can live to 150 ( small details)

 

[Roy]

Tis ok, I've managed to shift most of it at cost....got about 40 ozs left now. 

I don't want to spoil Marc's thread, but I really wish I hadn't bothered with it. My advice is to start/stick with gold.

Not a popular comment on a silver forum eh?

 

[SheepStacker]

Just now, Roy said:

Tis ok, I've managed to shift most of it at cost....got about 40 ozs left now. 

I don't want to spoil Marc's thread, but I really wish I hadn't bothered with it. My advice is to start/stick with gold.

Not a popular comment on a silver forum eh?

 

As long as you're not shilling platinum, I don't mind

[Silverlocks]

I'm buying mostly gold with a preference for items that can be resold easily on the secondary market - here and FB groups mainly.  That means building up a track record of some sales here and other forums.  Plan B is to sell back to a dealer, which means that one has to be careful about premiums over spot.  That makes my stack appetite look like:

• Sovereigns - because they have relatively low premiums and are very liquid on the secondary market.  My preference is for the better end of bullion sovs with a bit of nice visual appeal, but not worried too much about rarity.  I can afford to buy a small portion of items with some premium, working on the assumption that they will still be liquid as long as the premium isn't overpaid.  I'm not convinced that the premiums on high value items like slabbed proofs are all that stable in the face of a recession; stuff like that has significant downside risk unless you get it at a very attractive price.  Also, exempt from capital gains tax.
• 1oz gold Brits and suchlike - Relatively low premiums mean the dealer spreads are relatively modest if I have to go down that route.  However, 1oz coins are still somewhat liquid on the secondary market.
• Bars - maybe some gold in the 1oz-50g range.  These have fairly low premiums but are still small enough to be reasonably liquid on the secondary market.  I've seen 50g bars trade here a few times but I don't think I've ever seen a 100g bar make a sale, at least not one I could find in the history of the UK ungraded board.

 I think these items give the best flexibility in exit strategy.  Small enough to be liquid on the secondary market but low enough premiums for the option of selling back to a dealer to be viable without losing too much on the spreads.  Conspicuous by its absence is physical silver.  Because of the VAT component, dealer sales are really inefficient, which means your market is limited to other stackers who are also likely to be short of cash in a recession, just the time you might want to offload a bunch of precious metals.  Buying some silver ETFs or a BullionVault account might work but isn't in my Q1-2 budget.

Edited January 4, 2023 by Silverlocks

[James32]

Just now, Roy said:

Tis ok, I've managed to shift most of it at cost....got about 40 ozs left now. 

I don't want to spoil Marc's thread, but I really wish I hadn't bothered with it. My advice is to start/stick with gold.

Not a popular comment on a silver forum eh?

 

Completely understand, all roads appear to lead to gold. 

I had zero gold last December, so I traded/sold/transitioned from 1250+oz of silver, down to around 450ozs and put that money into gold. 

I'm back at over 750ozs of silver so there's an obvious flaw in my plan 😆 I will always keep around 500ozs of silver though "why?" I genuinely believe it will at least double within the next 5 years. 

Gold is now my focus, but silver got me here cheaply ( relatively speaking of course)

[Roy]

To return to topic:

It's recommended to DCA or pound cost average for UK stackers. Back up the truck if there's a dip.

Shouldn't an exit follow the same strategy? Sell regularly and evenly unless there's a sudden spike where you could shift the lot in one go?

I think it's important to have a reason too. A member here wanted to buy a family home, he waited until spot was favourable and sold 9 kilos in one hit. Sure, he could have got more (would have today) but his target was reached.

[Roy]

There are also 'psychological' factors at play here!

A lot of my silver was bought £11-13 oz. I sold most of it for about the same (£425 kilo?).

🔫

[SheepStacker]

Just now, Roy said:

I sold most of it for about the same (£425 kilo?)

Got any left? I'll pay you £430

[Roy]

😭

The most profit I ever made with silver was with this. Sold for £500.

I was so happy 🔫

[SheepStacker]

1 minute ago, Roy said:

The most profit I ever made with silver was with this. Sold for £500.

 

[Roy]

There's a lesson eh? Stick with it. If I'd held, I could probably ask up to £800 for this now?

Nearly double my money?

There are guys on here who never sell. Bigger balls than me.

[SheepStacker]

2 minutes ago, Roy said:

There are guys on here who never sell. Bigger balls than me.

I reckon the flippers who sell 1000 times a year for a few points over spot, make more in the long run than than the buffalo balled hero who sells once in his life time.

Purely speculation, i'm not HMRC or the ball measuring company.

[James32]

10 minutes ago, Roy said:

There's a lesson eh? Stick with it. If I'd held, I could probably ask up to £800 for this now?

Nearly double my money?

There are guys on here who never sell. Bigger balls than me.

Truth be told it's all a cycle.

Even if you held and doubled your money, it costs twice as much to buy back in..like property in a sense.

Ohh I made £80k profit on my flat, unless you plan to live in a tent, you will spend that £80k+ on the new place. So the only objective for me personally is hopefully having a free pastime and sustaining buying power for whatever the future throw's at me.

 

[SheepStacker]

2 minutes ago, James32 said:

Truth be told it's all a cycle.

Even if you held and doubled your money, it costs twice as much to buy back in..like property in a sense.

Ohh I made £80k profit on my flat, unless you plan to live in a tent, you will spend that £80k+ on the new place. So the only objective for me personally is hopefully having a free pastime and sustaining buying power for whatever the future throw's at me.