20K in gold/silver (50/50). what would be your strategy to liquidate?
2ltdjorn
Posts: 2,329 ✭✭✭✭
sell all at once? or sell in stages?
10k in silver (90%)
10k in gold (first spouse, commemoratives, and generic us in TPGs)
sell gold now, wait on silver?
in gold for ~ 1200. in silver ~ 15
plan would be to put proceeds towards debt (car note, and student loans) with proceeds from precious metals and current debt payments would be debt free (50K) in 6 months. would only have mortgage, and would be able to rebuild quickly with past debt payments going to rebuild cash surplus.
at this time I am 34, wife is 38.
we have 100K equity in home (30 year at 3.5%), and over 300K in investments (Roth IRA, 401k, 529, etc).
plan would be to rebuy gold/silver as price corrects moving forward. ounce gold/year, $100 fv 90%/year.
thoughts.
WTB... errors, New Orleans gold, and circulated 20th key date coins!
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Comments
I would first think twice about asking a bunch of coin geeks for financial planning advice.
All comments reflect the opinion of the author, evn when irrefutably accurate.
If you want a bunch of barely informed advice:
All comments reflect the opinion of the author, evn when irrefutably accurate.
And cue the people who will say "BST"...
All comments reflect the opinion of the author, evn when irrefutably accurate.
BST
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
Pigs get slaughtered....Always something that sticks in the back of my head.
The other thing that sticks around is, why do you have to sell it all at once or right now? If we all had crystal balls, this would be easy! Why not just approach it the way that most folks do with investing, which is buying "in positions" over time for an averaged approach. Can do the same with selling. I doubt you will get a "premium" for quantity. Therefore, you can average out as well, especially if you actually use the proceeds for the purposes you listed.
Just two worthless scents.
Surf
I would certainly be aggressively paying off debt now.
As long as spot is rising, sell slowly. When spot dips, hold selling.
Oh, BST.
And if you're feeling lucky, put proceeds in an easy to trade Robinhood account and ride PMs up with 2X leveraged ETFs (AGQ and UGL) and ride PMs down with 2X inverse EFTs (ZSL and DGZ). But only if you feel really, really, really lucky and are confident you can forsee short term price movement. Otherwise pay off your highest interest rate debt first.
No Way Out: Stimulus and Money Printing Are the Only Path Left
My 2 cents: It shouldn't matter what you're "in" them for. You have them now regardless of what you paid. You should sell when you think you can get a good price and/or need the cash money.
Successful BST transactions with: Cameonut, Rob41281
My plan is sell 1/3 at $30, $35, and $40. Phase 1 almost in effect... Don't forget to tip your taxman in April for any gains.
I would sell all the silver if it hits $40, not sure between here and there.
Gold, I'm just not certain with, the guys saying it could go to the moon could be right this time (but they've been wrong longer than I've been alive). I think I'd sell it at $3k, not sure between here and there. Do you like the stuff you own?
I like your plan of buying back when it drops, I bought a bunch of silver at $4 after the Hunt crash.
When it comes to investing, just do the opposite of what I do, and you will do really well.
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Good thing you are not running for Congress on that platform.
My US Mint Commemorative Medal Set
What form is the gold and silver? Bullion coins or bars or what? Also, there's a Precious Metal Forum here where you should be asking this question.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I agree!
If you have to think twice, you have already thought too much.
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@PerryHall
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
Seriously, I would (and did) sell the lower graded first spouse gold and modern gold commemoratives as they are basically melt, unless some very specific dates and grades. So, I sold some July, some Aug, have some for Sept. to sell. You get the idea to spread it out. If you have any high interest use the money to pay off debt as suggested by @Smudge above.
I still am keeping my spare silver, and a stash of 90% is just something to hang on to. Hedge your bets.
My US Mint Commemorative Medal Set
Not helpful wrt your bullion, but if you’re not planning to move soon refinance your house. You should be able to get 2.75% 30 year (or 2.5% 15 year if you can handle a bit higher payment).
With a plan like yours, dump:repurpose:refinance:rebuild....
You really can’t go wrong chasing debt free home ownership...aggressively, under 40 yrs old....especially so with other assets on the books...
I think that paying down your debt a little faster while holding a little precious metal in reserve is a sound plan.
I knew it would happen.
Sell & move on.
I repeat, sell & move on.
None of those guys are anywhere near as smart as they think they are.
No Way Out: Stimulus and Money Printing Are the Only Path Left
You forgot to mention some important points. Total mortgage? Is your home liquid or illiquid at this time? If you need to sell the residence & move would it create financial hardship?
$20,000 in PM is 350oz ag & 5oz au. Insignificant really in the whole scheme of things. But Good to have it. I probably would consider rolling silver into gold( 1oz AGE or Kuggies) as the GSR declines. At 60GSR-120oz for 2oz gold. At 50GSR-100oz for 2oz. IIRC, 100oz 90% is a PCGS box. 2oz of gold is a lot easier to carry & if you need transaction FRN-less than 48 hours 99% of the time. Gold is much easier to work with than hundreds or thousands of ounces of silver & as the GSR declines-this is a heck of an opportunity that rarely comes along.
Some things to think about.
I have quite a bit of AG. At 60GSR, 25% goes to gold. 50GSR, another 25%. If we get to 40GSR-ykes, I may have a heart attack.
Going through some similar processes right now....
My thoughts.....most of the people above aren't looking at it from YOUR perspective, but their own biases.
I might as well, but I'll be upfront about it.
So, that said....forget about the house debt. in at 3.5% is fine if you are comfortable with the payments. Ignore your equity at the moment as well...I hate tapping home equity if not necessary. It is harder to pay back than you initially think.
The investments? Take those out of the equation as well...that's for your retirement timeframe. If you are actively adding to them, great! If not, hopefully you will be able to soon.
Now, for the silver/gold.
Personally, I think gold will go up higher, but I am uncertain of how high. Already at a price higher than before. Maybe sell a few pieces at a time. I would start with the "harder" pieces, which are likely to be the commems. Ditch those first.
Next grouping would likely be the gold coins. They may have numismatic value, or may be largely bullion value, but the market for them is going to be smaller than for bullion.
That gets into the first spouse coins....most are likely considered bullion, but can pretty easily be sold as such. I would do these in the 3rd grouping...and hold them for awhile longer UNLESS you can really just knock out that 50k debt quickly by selling them (you've said $50k debt by only $20k in silver/gold, and the remaining $30k coming from "regular" debt payments in next 6 months...).
The silver.....
Now, silver hasn't reached an all time high yet, but is trending up. I would sell a little and have more primed and ready. I would sell all the silver before selling ALL the gold; particularly as you say it is 90%.
90% sells quickly but, if you try to sell locally, you usually get a little shave/haircut on it. I'd probably sell ~1/3 now and another 1/3 in a $5-$10 increase in spot. The final 1/3 would be for anything above $40.
The BST would be good for the 90%, I think. You could get more on ebay but you pay the feels and deal with some jerks. If you price reasonable here, you should get some takers. You would get a tad less locally, most likely (given my recent experience last week, for my area) but you get in and out without worrying about shipping or anyone having second doubts if spot drops, etc.
So, with covid still going on, money still being printed in large volumes, and an election coming up, PMs are likely to still increase...BUT there is always some uncertainty .... there is, however, certainty in being largely debt free, so, I would do that, but do it in stages over the next 6 months. Particularly if you can pay off individual debts with your sales (ie...you have 5 non-housing debts that add up to $50k....1 is at $2000, another @ $4000, the 3rd at $5000, the 4th at $12,000 and the remaining one @ $27,000.....if you can sell 2 ounces of gold commems and pay off the 2nd one, and 1/3 of your silver to pay the 1st one, then I'd do that...2nd batch of selling would take out the $5000 debt, etc). Once those are gone, the payment amounts can go against the largest debt.
The ONLY deviance I would do would be if the rates on the smallest ones were also the lowest....I'd hit the largest debt at the higher interest rate that I could, that would enable me to completely clear it.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
If you have consumer debt, don't bother trying to time the PM markets.
I know it may hurt, but you should part with the metals and address your student loan (s). Aren’t the interest rates a little high ?