Selling, what say you?

KUCH · March 28, 2011 11:49AM

I'm thinking of selling all of my silver and converting to gold. Would greatly appreciate the suggestions of the great PM minds on this thread!

Bear · March 28, 2011 11:52AM

Why not hedge your bet and sell 50% to buy gold, keep 25% silver and 25% in

cash for a buying opportunity?

gecko109 · March 28, 2011 11:55AM

If strictly going by the GSR, then it seems like a winning play. However, diversification is probably the best move...even in metals. One major problem I have with gold is that there are MASSIVE stockpiles of it all around the world. Gold increases by about 2.5% each year....give or take a bit. There is real "gold inflation". Silver has been running defecits for a couple decades......there is less silver in the world today than there was 20 years ago, where there is more gold today than 20 years ago. Im personally happy with a near 50/50 split right now in my own stack, but if you would rather put all your eggs in one basket.....and have a justification for doing so.....then do it.

KUCH · March 28, 2011 12:10PM

Bear/Gecko

I'm goint to take both of your suggestions ...... going to sell some silver (take profits) and buy gold. The GSR does validate this move. Will keep some silver bars and cash on the side.

TWQG · March 28, 2011 1:11PM

I took about 10% of my silver off the table, since we're at such high levels.
I'll sleep O.K. if it goes up or down from here.

Ahrensdad · March 28, 2011 11:26PM

My advice is to keep your 10 oz bars, keep your englehard and JM's and sell all the generic and 90%.

jmski52 · March 28, 2011 11:30PM

Gecko makes some good points, and the buzz now seems to be that silver has overrun its price targets. If we were all operating on valid and good information, then we would all know what the true prices for gold and silver ought to be. Unfortunately, I don't know if anyone really has good information. Do what makes you feel most secure.

The gist of what Bear is saying is what I try to do. Sound money management is just as important in real life as it is in Vegas.

percyb · March 29, 2011 3:03AM

I wouldn't sell anything. Keep your silver.
If you want gold, just go buy some.

DoubleEagle59 · March 29, 2011 3:52AM

I'd get 50% gold and 50% silver by worth.

That way, you're covered either way the GS ratio goes.

roadrunner · March 29, 2011 4:10AM

Don't sell all your 90%. That stuff is far more usefull if things ever hit the fan. Should always keep some 90% for small transactions, etc. But if you're ready to fork over
a 1 ounce bar for a loaf of bread (vice a silver dime or two), that's your choice.

roadrunner

CaptMorgan · March 29, 2011 5:50AM

Im buying silver and buying it hard. 90% strictly, and will be buying until it hits $50. Then Ill slow down and recalibrate my buying and selling process.

I like gold, but I prefer silver.

InYHWHWeTrust · March 29, 2011 7:52AM

I agree with PercyB, if you are able; keep your silver stack and start buying gold with any dry powder you have, or will make soon. Otherwise, keep the 90% and sell some bars for gold purchases.

And I agree with RR, esp re: the 90%. I am a 100%-in-90%-kind-of-person, though.

The collectible silver bars look fun/cool, like numismatic items with a premium/challenge, but I don't have that luxury right now.

ufdah · March 29, 2011 8:05AM

It seems like it depends on what is the REASON you are collecting and building up your silver and gold resevoirs. Some people on the PM forum are buying and selling because they like the action and are playing the market and its indicators. And the second kind of person is hoarding for what they believe will be a shtf kinda moment coming in the world. So it seems that you have to figure out what kind of person you are and the reason behind why you are into PM's it will make alot of difference of either selling or buying or sitting. BTW I'm a hybrid, there is a number at which I would sell my silver and perhaps entertain the notion of buying gold with the proceeds, but i also think the World is in for a rattle here in the near future and believe silver will better assist me if it all goes to hell in a handbasket.

Justacommeman · March 29, 2011 9:51PM

Why did you buy silver in the first place? Answer that question honestly in your head and your decision should be easier to make. MJ

Mesquite · March 29, 2011 10:16PM

I recently went through what you are going through. I sold ~ half of my silver (mostly generic rounds and bars); keeping the other half as part of the stack. The proceeds immediately went into the purchase of gold. I was heavy in silver and light in gold. The stack is now smaller (weight and volume-wise) with very nearly the same value. My reasoning behind the move was that both gold and silver are increasing, but the value of silver is more volatile than gold. So, I locked in profit, stabilized (to a degree, maybe a large degree) the stack value and arranged it so that future PM purchases can be in silver (much more affordable than gold). BTW, the gold I bought was low-denomination AGE, thinking that if indeed the economy tanks, the lower denomination stuff should be more liquid (greater number of buyers) if the need to sell were to arise. I think you'll be happier with keeping it diverse. I am.

Justacommeman · March 29, 2011 10:57PM

Mesquite- well done. Sleeping weight is generally the right move. MJ

KUCH · March 30, 2011 3:27AM

MJ and PM friends,

I still haven't made the move yet, I'm glad cause both AU and AG are up. I bought silver to make a profit and gold for insurance. So, I've decided to sell 1/2 of the silver stack and use all proceeds to buy gold.

Jeez, I'm always complaining about all the insurance I have to pay: I'm buying more gold for insurance!?*!?*

Health Insurance
Home/Property Insurance
Business Property Insurance
Business Liability Insurance
Workman's Comp
Car Insurance
Airplane Insurance

My thought is..... as we move forward to a world currency, it will be based on gold and not silver.

Do I make the move tomorrow or next week???????

Mesquite · March 30, 2011 7:18AM

It probably does not matter if you do it tomorrow or next week or in two weeks or in six months. This article by Charnock predicts that both gold and silver prices will be heading north in the next few months; my best GUESS is that the GSR will remain the same (or close to it). If you're simply selling silver to buy gold then it does not much matter what the price of each is if the GSR is unchanged. (Who knows if in six months the GSR will drop from 1:38 or 1:25?) What we do know is that right now its around 38; down from about 75 - 80 last year. His point is that if you don't own either you should buy either gold or silver pretty soon.

What a crap shoot. I'd rather be making decisions based on six month hindsight than best-guess six month foresight. Unfortunately, there ain't no do-overs in life. But, the fact that we're in the game with PM means that any misses will amount to a few dollars (in the grand scheme of things) and that we WILL HIT +/- despite our lack of precision in foresight guesswork. I'm OK with that.

edmundfitzgerald · March 30, 2011 7:33AM

Check out this gold that just sold at spot. Not bad for the buyer.

$50 gold eagles

BTW, I would always trade silver for gold.

Baley · March 30, 2011 7:56AM

But if you're ready to fork over to fork over a 1 ounce bar for a loaf of bread (vice a silver dime or two), that's your choice.

What if the baker in not interested in any amount of silver for his bread? What if he only accepts payment in the form of bic lighters, fully charged D batteries, or razor blades? What then???

fivecents · March 30, 2011 9:25AM

<< What if the baker in not interested in any amount of silver for his bread? What if he only accepts payment in the form of bic lighters, fully charged D batteries, or razor blades? What then??? >>

Then you find someone to trade your silver for their bic lighters, fully charged D batteries, or razor blades. Then go back and get your bread trade on.

KUCH · March 30, 2011 9:27AM

Oh, we've got that covered. In the stack:

Food
Ouzo
Smokes
Medical Supplies/drugs, including medical weed....... Do u know that TODAY, medical weed goes for $400/oz! Might be the new PM!
Gasoline/1,000 gallons in 5 gallon containers
Wood stacked for 3 yrs/heating

This is all "Just In Case"

Baley · March 30, 2011 10:20AM

Gasoline/1,000 gallons in 5 gallon containers

You've got 200 jerrycans of gas sitting in storage?

question 1: does it go stale? question 2: do you rotate it? (burn some, get new) question 3: do you hope the building doesn't catch fire? question 4: Seriously??

Baley · March 30, 2011 10:37AM

<< What if the baker in not interested in any amount of silver for his bread? What if he only accepts payment in the form of bic lighters, fully charged D batteries, or razor blades? What then??? >>

Then you find someone to trade your silver for their bic lighters, fully charged D batteries, or razor blades. Then go back and get your bread trade on.

Naw, the guys with that stuff don't wan't useless silver either... but have you got any cigarettes, whiskey, aspirin, or penicillin, by chance?

Justacommeman · March 30, 2011 11:33AM

<< Gasoline/1,000 gallons in 5 gallon containers

You've got 200 jerrycans of gas sitting in storage?

question 1: does it go stale? question 2: do you rotate it? (burn some, get new) question 3: do you hope the building doesn't catch fire? question 4: Seriously?? >>

Mad Kuch.....................

Kuch, do you look anything like Mel Gibson? I can so picture you trying to leaving Dodge with all that gas stashed away

fivecents · March 30, 2011 12:49PM

<< question 1: does it go stale? question 2: do you rotate it? (burn some, get new) question 3: do you hope the building doesn't catch fire? question 4: Seriously?? >>

You talk'n about the medical weed???

akuracy503 · March 30, 2011 2:29PM

Diesel SUV's and vehicles are a hot item, Diesel will be the only type of gas around when SHTF.
Shelf life on Diesel is much greater than regular gasoline.

Just an FYI

DoubleEagle59 · March 30, 2011 8:38PM

<< But if you're ready to fork over to fork over a 1 ounce bar for a loaf of bread (vice a silver dime or two), that's your choice.

What if the baker in not interested in any amount of silver for his bread? What if he only accepts payment in the form of bic lighters, fully charged D batteries, or razor blades? What then??? >>

The baker will ALWAYS accept gold and silver for payment for his bread.

You know why?

Because when HE needs "bic lighters, fully charged D batteries or razor blades" not everyone he's buying from will accept his stale bread for payment.

gecko109 · March 30, 2011 9:32PM

<< 

<< But if you're ready to fork over to fork over a 1 ounce bar for a loaf of bread (vice a silver dime or two), that's your choice.

What if the baker in not interested in any amount of silver for his bread? What if he only accepts payment in the form of bic lighters, fully charged D batteries, or razor blades? What then??? >>

The baker will ALWAYS accept gold and silver for payment for his bread.

You know why?

Because when HE needs "bic lighters, fully charged D batteries or razor blades" not everyone he's buying from will accept his stale bread for payment. >>

Dont come down too hard on Baley. He is very misguided. I would point out to him that today....right now....that baker will accept a green strip of PAPER for his bread, yet Baley thinks he would reject a solid piece of SILVER if those pieces of paper were to completely fall from favor? How twisted is that logic?

Barndog · March 30, 2011 9:53PM

silly argument. If you are saving silver for a SHTF life, you should be able to bake your own bread

Justacommeman · March 30, 2011 10:03PM

Baley could actually be right.............lead (as in bullets) could be the currency of choice in a real SHTF scenario. Unless, you course you are in need of killing a werewolf or zombie. Then silver might be your best bet. I doubt in a SHTF everything goes according to script. Open minds boys and girls. MJ

gsa1fan · March 30, 2011 10:07PM

I sold almost all my silver and converted it to gold @ 45 to 1 GSR.

GSR now @ 38 to 1 seems a no brainer to me but then I like gold better

yellowkid · March 31, 2011 12:20AM

Why do these things always end up as SHTF threads???

PS I will cut to the chase here, but the IRS and my contractor have left me "cash poor" and I just realized I don't have much money available to go to the Baltimore Show in the morning( If I'm not snowed in). I decided to sell some of one of my PM funds to raise a little cash, something I seldom do, but the time just seemed right for it. If it wasn't going into my coin collection however, I would have done something else.

Baley · March 31, 2011 3:05AM

they always go SHTF because someone always mentions how useful little pieces of silver will be when the economy goes back to the 17th century.

btw gecko, my bakery doesn't even require little green pieces of paper for his loaves! he let's me run my plastic card through his machine! how crazy is THAT?

You know what's even more amazing? I go to work every day, not for silver, not for green paper, not even for black ink on a piece of security paper like I did a few years ago.

No, I'll work very hard for simply different electronic numerals on my computer screen!

But back to KUCH and his gasoline, could we see a picture? I'd be really impressed if you could post a pic of 200, 100, hell, even a dozen 5 gal cans, with today's newspaper in the foreground.

PS. You're paying too much for your "other" supplies you mentioned

even if it's "da kine"

Selling, what say you?

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