Is now the right time to sell silver?

BBN · December 3, 2005 7:53AM

My dad is sitting on about 50 pounds of rolled quarters and halves. He hoarded these things beginning in 1965 until they started to disappear from circulation in the 70s. He was looking into selling it about 6 months ago but doesn't know if he wants to pull the trigger yet or not. I went through it all and he didn't have anything great. Most very circulated besides 64 quarters and Kennedys and he let me pick out about 4-5 Franklins for my collection. Any word on silver's future?

CarlWohlforth · December 3, 2005 8:01AM

It can't hurt to sell some now and keep most for later. If silver goes down at least you sold some at the top. If silver goes up you have more to sell!

I think many of us here on these forums think inflation will pick up (or already has). So if you agree then you would want to save most of it.

wjd283 · December 3, 2005 8:02AM

<< Any word on silver's future? >>

I don't think it will go very much higher before it starts to drop,but that's JMO.

You could sell half now and save half for later in case it does go a lot higher.

sleeper · December 3, 2005 8:05AM

Personally i have sold my holdings and sell as fast as we buy in the shop now.

Andrew

Freak1c · December 3, 2005 8:08AM

Well if it is silver coins not worth more than spot and he is not in a financial crunch, then I would say you should hang on to it.

Tom

cladking · December 3, 2005 8:13AM

Silver's up a lot so it may be a great time to sell. This is especially true if you're
sure you want to sell within the next year or two. This being said, if you don't
need the money and don't mind seeing a possible loss then this may be one of
the best times ever to buy silver. Eventually silver will explode higher in price and
this could be the time.

His best bet is to look at the situation and figure out what he thinks is best. Most
investoers should keep at least a little of their wealth in real assets and this will
become common wisdom again someday.

brccoins · December 3, 2005 8:24AM

I would hold on for a little longer. I have a feeling gold and silver are going to continue to rise.

BBN · December 3, 2005 8:47AM

He's definitely not hurting for money. I'm 35 and I had no idea what he was worth until about a year ago because he's kept his fortune pretty quiet. Growing up I thought we didn't have anything. He's just an insane saver. I guess maybe he should hang on for now. He's just worried that he'll miss the boat again like he did in the early 1980s.

RickyHendersonSD · December 3, 2005 8:49AM

In my opinion Silver will be $50+ per ounce within 5-10 years.

HonoluluDude · December 4, 2005 1:03AM

<< In my opinion Silver will be $50+ per ounce within 5-10 years. >>

Totally agree. You should be buying silver right now, not selling.

RedTiger · December 4, 2005 1:17AM

If dad has some other hard assets (gold, silver, collectable coins) socked away, go ahead and sell. If not, I would advise keeping it and perhaps buying more, or some gold to diversify. In my opinion, every wealthy person would be well advised to have a pinch of gold or silver, preferably in physical form. When the sh*t hits the fan and everyone is buying, it is too late. When things change, they often change quickly.

Warren Buffett (2nd richest man in America) has been sitting on a pile of silver for several years. Silver is over 1% of his substantial assets. I think he is in at about $7 per ounce and I doubt he will be selling at $8, $10 or even $15 or $20. He watched it drop under $5 and many laughed at him. However, when you move in the size that Buffett does, you can't wait for the bottom to get in. If Buffett made his announcement about buying silver today, I believe silver would jump to $11 in a week.

curly · December 4, 2005 1:33AM

It depend upon what you are after. I personally would take what profit I can now and put it in some type of interest bearing account or mutual fund.

I was building a set of 1oz gold bullion (buying one a year) until gold hit $462 a few months ago and I sold out. Don't regret it a bit. I don't care where gold goes to.

Put the money in a secure investment (by secure I don't mean collectables), and see who comes out ahead, you or the person you sold the silver to. Silver was around $50 bucks an oz back around 1979. When do you suppose anyone who bought back then will make that big killing that all the so-called gurus and gloom and doom forcasters were promising?

Thats my take on it anyway.

Deadhorse · December 4, 2005 1:40AM

<< In my opinion Silver will be $50+ per ounce within 5-10 years. >>

Doubtful.

What happened in '79-'80 isn't going to be allowed to happen again. The Feds changed the laws after the fact to knock the Hunt brothers out and save the big boy's hides.

They won't wait that long this time. We are going to see a steady rise with some sharp spikes and a few deep drops. That's the nature of silver.

Silver's true value will eventually become the spot price. Right now I'd say that given the cost to mine it at $8 an ounce, it should be worth around $12-$13 in a refined .999 state. Your melt coins will always be worth less than their silver value due to recovery costs. The higher silver goes, the greater the difference in bullion and melt coin value.

Given inflation and continued demand, I could see silver at $20 several years down the road.

Of course, I don't have a crystal ball. There could always be a technological breakthrough that could change things in a hurry. Still, you shouldn't bet on a "what if" scenario.

ldhair · December 4, 2005 2:13AM

<< Most investoers should keep at least a little of their wealth in real assets and this will
become common wisdom again someday.
>>

Very wise words.

Outhaul · December 4, 2005 2:14AM

<< In my opinion Silver will be $50+ per ounce within 5-10 years. >>

And what do you base this on?

If, in fact, you can predict this, howzabout picking my next PowerBall numbers?

Jdurg · December 4, 2005 2:45AM

I say 'sell if you want to, and hold onto it if you don't'. Nobody can predict what's going to happen ten years from now. It may skyrocket in price, it may stay the same, it may plummet. As for holding onto the physical metal in case of a 'incident', I've never understood that. If things suddenly got really bad and somebody tried to give me a piece of metal in exchange for gas and or food, I'd laugh in their face and spit on them. When a crisis breaks out, what the heck am I going to do with a piece of shiney metal? If it comes to that time, I'd rather trade things of value such as guns and bullets and electrical generators, etc. etc.

Is now the right time to sell silver?

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