Exit strategies?

[dicker]

On 04/01/2023 at 00:24, 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?

 

Pretty much what I would suggest (start and stick with gold) with the exception of Morgan Dollars.

[StackemHigh]

My exit is in a big wooden box, with flowers on top. My coins and bars will be left in the will.

[SidS]

1 hour ago, StackemHigh said:

My exit is in a big wooden box, with flowers on top. My coins and bars will be left in the will.

I've got to break it to you, we can't afford the flowers, sorry. Cost of living and all... 😉

[flyingveepixie]

Ach bloody silver.  GRRR.    Cue big angry face...😡   I mean, don't get me wrong chaps because I like it. I like the shiny attractiveness of it but the manipulation of the value of it by the big boys really drives me nuts.

I bought a load of silver from RM when spot was around £16.85.  Big mistake. Huge mistake in fact.   Add VAT and RM premium to the spot price at the time and I ended up paying £27/Brit and I have 300 of the bloody things.

So now I can't get rid of the recently aquired RM silver without making a loss and I spend every day watching and hoping that spot might just pass that oh-so-close point where I can sell and walk away happy.  I don't really care about making a profit, I just don't want to make a loss.   If spot ever rises to the point where I can sell, I'd like to sell most of the Brit stack - maybe about 250 of them -  in favour of getting a bit more gold, but as @James32 mentioned in an earlier post I might have to wait till I'm 150 years old for that to happen.   Sigh....🙄

I also have a few old silver proof 50p, £1, and £2 coins which I've had in my possession for more than 30 years but I'm a bit more attached to them for purely aesthetic reasons because me old Ma got me most of them when I was a young lad, so I'll probably hang on to them for no other reason than that.

I recently also aquired two Germania mint Valkyries which I like very much, although in my usual kack handed fashion I went and cut the COA for one of them when I opened the envelope with a pair of scissors and had to stick it back together with sellotape. Tsk.  I might sell one of them if the time is ever right...🤔

Edited January 11, 2023 by flyingveepixie

[theman73]

Exit strategies? Why?

Be your own bank, use your metals like collaterals if you need money.

 

[Orpster]

7 minutes ago, theman73 said:

Exit strategies? Why?

Be your own bank, use your metals like collaterals if you need money.

 

I like this👆. 
I try and consider Gold as money.  The value of gold does not change in my mind, what changes is the value of fiat currencies and so how much fiat you need to guy your gold.  So the dollar moving changes it as does the exchange rate of sterling and the dollar.  Then my only consideration is my faith in fiat versus my faith in gold.  Hence I have more gold than fiat

Edited January 11, 2023 by Orpster

[TheShinyStuff]

@flyingveepixie  - If you can afford to then just sit on the Silver - its time will come. Otherwise you could sell on here and likely break even if you are patient, or sell at a minimal loss to fund gold.

You may also find people willing to swap full tubes, or multiples for gold.

I had a similar issue with Silver. Not to the extent of 300oz to be fair, maybe half that. I had loads of different coins, sort of a one of everything approach, I loved them, but it's a difficult sell when the time comes.

My future focus is definitely gold, but will keep some Silver, and buy more Silver, just not as much, and more generic, easier to move on stuff.

My plan is that my kids will have my stack and I aim to make it as easy as possible to dispose of should they choose, and that means Brits, Kilos and Sovs etc.

Silver is more affordable than gold, prettier than gold, but as you say its frustrating stuff...

 

[flyingveepixie]

8 minutes ago, TheShinyStuff said:

@flyingveepixie  - If you can afford to then just sit on the Silver - its time will come. Otherwise you could sell on here and likely break even if you are patient, or sell at a minimal loss to fund gold.

You may also find people willing to swap full tubes, or multiples for gold.

I had a similar issue with Silver. Not to the extent of 300oz to be fair, maybe half that. I had loads of different coins, sort of a one of everything approach, I loved them, but it's a difficult sell when the time comes.

My future focus is definitely gold, but will keep some Silver, and buy more Silver, just not as much, and more generic, easier to move on stuff.

My plan is that my kids will have my stack and I aim to make it as easy as possible to dispose of should they choose, and that means Brits, Kilos and Sovs etc.

Silver is more affordable than gold, prettier than gold, but as you say its frustrating stuff...

 

Agreed on all points.  😁   Yeah I'll sit on it till the time is right.   I'm sure Brits will be easy enough to move when the time comes.

[SidS]

1 hour ago, Orpster said:

I like this👆. 
I try and consider Gold as money.

Its funny you should say this, I have for many years viewed my wage in sovereigns and it's quite alarming sometimes with regards to purchasing power.

Say I was paid £1000 per month after tax in 2004, sovereigns about £120 a pop. At the time I would have considered my gold wage as just over £8 per month - not too shoddy.

If I was still on £1000 now, my current gold wage would be just over £2 10s per month. That's some fall in fiat.

Although I haven't tipped my toe back into gold yet (I'll wait for the price to fall back below £1500), I do still pay a proportion of my wage to myself into silver.

I get £1 face in pre-1920 every month.

Edited January 11, 2023 by SidS

[flyingveepixie]

On 04/01/2023 at 16:37, Pete said:

Personally I feel that as long as you hold PMs you are kind of protecting purchasing power in fiat, so unless you need the cash, don't get rid of your PMs.

You're not protecting your purchasing power by holding silver.  I can't understand why so many people seem to think this way. Right at the start of my stacking journey I thought this way too which was why I misguidedly bought too much silver, but that was before I educated myself in basic economics with a bit of history thrown in. Silver hasn't performed well over the years. It isn't performing particularly well right now despite the fact that spot is slightly higher than it has been for a while,  and it hasn't kept up with inflation.  Throw in the issue of VAT and the picture looks even worse.

Gold on the other hand is currently (at time of writing) priced at £1551.98/oz. It is VAT exempt, and CGT exempt for coins marked with a Sterling face value,   It's a no brainer if you'll pardon the expression.

Edited January 11, 2023 by flyingveepixie

[theman73]

3 hours ago, flyingveepixie said:

You're not protecting your purchasing power by holding silver.  I can't understand why so many people seem to think this way. Right at the start of my stacking journey I thought this way too which was why I misguidedly bought too much silver, but that was before I educated myself in basic economics with a bit of history thrown in. Silver hasn't performed well over the years. It isn't performing particularly well right now despite the fact that spot is slightly higher than it has been for a while,  and it hasn't kept up with inflation.  Throw in the issue of VAT and the picture looks even worse.

Gold on the other hand is currently (at time of writing) priced at £1551.98/oz. It is VAT exempt, and CGT exempt for coins marked with a Sterling face value,   It's a no brainer if you'll pardon the expression.

Maybe the ages of making money from doing nothing are long gone? (my opinion of course)

Buy-stack-sell-repeat?

[MonkeysUncle]

7 hours ago, theman73 said:

Maybe the ages of making money from doing nothing are long gone? (my opinion of course)

Nah, this is the age of money for nothing. See Mr B Johnson for example. Or the oxygen thieves that are the Kardashian family. 

If anybody would like to give me money for doing bog all I'd be very grateful

[StackemHigh]

14 hours ago, MonkeysUncle said:

Nah, this is the age of money for nothing. See Mr B Johnson for example. Or the oxygen thieves that are the Kardashian family. 

If anybody would like to give me money for doing bog all I'd be very grateful

I would think that keeping these high levels of publicity would  take a lot of work, time and money. At these levels the teams of publicists would clearly be expensive. How many photos of someone on holiday will make it to the press

I really would need someone who know what the kardashians look like to tell me that was them as they are never in my newsfeed. My top news feeds today were Jeff Beck and why the north needs to connect to the HS2 project.

 

[MonkeysUncle]

6 hours ago, StackemHigh said:

... and why the north needs to connect to the HS2 project.

 

I think by that happens silver will have gone to the moon, got brassed off with the Chinese and Yanks digging holes, found the double decker bus that disappeared and metamorphosis will occur and the silver will turn to gold.

[EdwardTeach]

On 03/01/2023 at 19:12, Bigmarc said:

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?

I have no definite concrete plan, just a rough outline of an idea which is variable depending on what world events and the markets do in the future. For now though I will just keep on buying every month or two for as long as it feels right to do so.

Half of my precious metals will probably be held for about 5 to 10 years until the markets suggest it is a good time to move out of this asset class (risk off) and into another (risk on) at which point I will likely sell about half of my precious metals and use the proceeds to buy some stocks and shares or whatever else looks like a good bet at the time.

The other half of my precious metals will be held on to for the rest of my life and will only be used either in an emergency or to go towards my retirement as part of a pension.

 

Edited January 15, 2023 by EdwardTeach

[FriedrichVonHayek]

Will start to swap my Silver to Gold when the Gold/Silver ratio hits 60,45,30 and 15.

[SilverCalum]

On 10/01/2023 at 15:55, StackemHigh said:

My exit is in a big wooden box, with flowers on top. My coins and bars will be left in the will.

That's my plan too. In the meantime I plan to enjoy the stunning coin designs. Maybe my grandchildren will sell the lot...

[gji25]

patience is a virtue when stacking silver and gold

 

[RacerCool]

On 12/01/2023 at 06:12, StackemHigh said:

I would think that keeping these high levels of publicity would  take a lot of work, time and money. At these levels the teams of publicists would clearly be expensive. How many photos of someone on holiday will make it to the press

I really would need someone who know what the kardashians look like to tell me that was them as they are never in my newsfeed. My top news feeds today were Jeff Beck and why the north needs to connect to the HS2 project.

 

The Kardashians look like Hispanics, like they could be from South America.  I don't think they are but that's what their appearance is.  Beyond that I can't tell you anything other than they're famous because they're famous, and that they're toxic and the worst examples to girls and young women.

[RacerCool]

All this comes down to basic philosophical differences between investors, collectors, and stackers. My view is that gathering PMs is a matter of anticipating and preparing for the future.  It's not an investment where I try to time the market.  It's a rather black pilled expectation that the market itself will radically change, and that PMs as we know them will become foundational to that market. And so building a personal store of PMs is preparing for that future.

Having said that, I have no real strategy beyond creating that personal store of PMs.  I've gone completely away from collecting (other than the occasional Mexican onzas/Libertads) and try to have what could be the most useful collection of coins, should the market radically change.  But even the Mexican coins fit into that plan since they're 1 oz of PM, and are widely known and recognized, and therefore have a very realistic place in a PM economy.  Any other collectible types have been or are being sold off and replaced with usable coins.

Edited January 16, 2023 by RacerCool

[JohnA1]

Exit strategy? 🙃 Yeah, on a rainy day

But every day above ground is a *good* day

 

When silver came in my radar I was deterred by VAT and the plump premiums.

While reading on gold/silver ratio etc I started to lean more towards it, still pissed off by VAT and premioums.

Even got some 1K bars in an attempt to keep premiums less bitter, but had second thoughts soon afterwards due to the CGT situation.

Almost all my silver is still 'underwater' assuming selling at spot. Less so with SF pricing.

If you estimate that you might need the 'money' in the next 5 years, I think silver is a risky proposition. If/when gold doubles and silver goes 5x up then I'd trade some silver for yellow.

So it's more of a trading-up strategy rather than an exit strategy. But who knows when that time comes..

[Bigmarc]

18 hours ago, JohnA1 said:

So it's more of a trading-up strategy rather than an exit strategy

That's a much better way of putting it. Trying to work yourself into a better position for when retirement comes. 

 

[JohnA1]

'Exit' is understood by most like a 'diet'

"Diet": you eat sensibly for a period of time, then go back to the habits that made you fat/sick in the first place.

Diet: your eating habits. Change them to what they should be, and you're good for life

 

"Exit strategy" I would plan for a temporary situation.

In the context of PMs, they are the only real form of money so do I plan to change them all back at some point for fiat?😅

Of course not. They are the core of wealth preservation.

If a really sexy investment opportunity comes up, then I'd consider trading some PMs and accept the investment risk/reward.

Otherwise PMs are going nowhere. Only in an absolute emergency where fiat reserves have been allowed to be depleted, or a life/death situation.

Maybe it's jut me..

[Bigmarc]

50 minutes ago, JohnA1 said:

If a really sexy investment opportunity comes up

I can't believe a fellow metal nerd just said that. 

51 minutes ago, JohnA1 said:

Maybe it's jut me..

Nope you are in the majority here, I differ slightly as unfortunately fiat makes the world go round and personally not going to get anywhere sitting on a pile of gold and silver but as you rightly said be sensible for a period of time and the go back to old habits. 

 

[JohnA1]

2 hours ago, Bigmarc said:

I can't believe a fellow metal nerd just said that. 

 

 

Fellow metaltard sees PMs as store of value, not investments. In the long run they preserve the purchasing power, not really make it grow.

Investments grow, produce returns - have a yield.

Therefore in times of economic growth he'd like to err on the investment side, so more PMs can be accumulated.

In times of stagnation (like now) he'd like to err on the PM side.