exit strategies

[Pipers]

Having worked through and traded through the classic car bubble and seen many people lose the shirts off their backs in the late 1980's, I thought I would start a thread about exit strategies.  

 

Many on this site IMO have good accumulation strategies but how many have thought just as hard about their selling position and when to sell or if they are going to sell.

 

Points to take into consideration are :-

 

1What age are you going to stop accumulating?

 

2 Liquidation  at some point you will need to exchange your Stack/collection for fiat either by drip or quickly.

 

3 Are you going to leave your stack/collection to family etc

 

4 How are you going to sell

 

5 What is your % to spot you are aiming for.

 

6 The Taxman, think about the type of PMs you pay less tax on when you sell!!!!!   This is often over looked. Receipts are good if you have not made much money.

 

7 Ebay vs dealer vs forums vs Gumtree vs Auction house.  I am not going to tell anyone where to sell and where is best, apart from to say, if you are trying to sell a newish proof coin or Perth proof 2oz or a Panda you are not in a rush to sell and you haven't got many coins to sell then buy it now on ebay maybe worth a go but be warned sellers have been burnt on ebay.   

 

 

[Scuzzle]

My strategy is pretty simple - to hold on to what I have, keep buying silver as and when I can while prices are low, (gold is on hold for now) and just wait things out.  I'm convinced there will come a time when the price will rise drastically and it's possibly not all that far away.  Something always happens to change markets and manipulations.  I was lucky in that I only started stacking recently and I only need back £13.40 an oz on the silver to break even, with  gold it's not so good and I need over £800 an oz. With silver once I see double this I will trade in half my stack and will look upon the other half as effectively 'free' so spot can then do what it likes, if it goes down I just continue to hold if it goes to the moon I sell some more.  With gold I don't need it's price to double if I saw £100-£200 an ounce over what I paid I would start to think about selling but would do it slowly and make sure I never got rid of it all while spot still had the possibility to rise further.

 

I have taken the capital gains tax into consideration and have the bulk of both my silver and gold is in UK coinage just in case prices do go crazy as it would be very easy to go over the 10K threshold if they did.  I bought a lot of my gold from Bairds and if it ever came to a ridiculously high spot price my plan is simply to phone the London office and arrange the buy back price then drive to the Glasgow branch and drop everything off and get a receipt for it, then getting it to the London branch is their problem.  Apparently the last time prices rocketed they ended up with more gold than they knew what to do with but they still continued to take it.  I have some 10 oz and kilo Perth and Canadian mint silver that could be sold on Ebay or Gumtree and would see a decent return if the spot went high enough, I would just be playing it by ear though if I thought I could get spot plus a premium it would go this way if not it would just get weighed in along with everything else for spot.

 

There is a theory that gold and silver is being sold cheap so Joe public will buy it and the government plan is to just confiscate it in the event of an economic crisis and then give us a digital currency while they pilfer it all, if this ever happens and my purchase history is scrutinised then as far as they are concerned I am a gambling addict and everything was pawned years ago to feed my addiction. I have a stack of fake gold coins that can be brought out so I can say I pawned my real gold years ago and replaced it with this so my family remain unaware of my gambling addiction as I could not face the shame of telling them.  Obviously if this did ever happen I would have to continue to hold on to my real stack but what's mine is mine, I have not done without over the years to accrue it just for them to take it.

[Ares]

My exit strategy is either eBay or if spot is high enough cash it in for 98% and save the hassle. But only the stuff I'm not interested in (more modern Elizibeth sovs) and funnel that over towards the stock market.

[SilverPirate]

If i don't sell it for what ever reason,i think my stack is going to my grandchildren.I have thought about his many times and i would love to leave it to them and maybe just maybe it went to the moon and they could use it as a house deposit,or help to put them through University.in reality it would probably go on nails, hair extensions and jaiger bombs.But at least i tried.

I have had a go at E-bay and it is a pain, but can work as long as you have a minimum start price your happy with, after charges.Remember to save old packaging and get cheap sellotape stored up before you sell up to keep the costs down,start buying that as well and it eats into your profit.

This forum was the best way to sell i found but look at the sales now they get withdrawn more often than sell,either we have what they have or we have taught each other so well we all know to go to HGM for gold or STG for silver.If and when the price goes up we will have a large number selling,to whom?who will be buying ? i won't.

On the leave it to the grand kids idea,Would you leave a shed load of tubes for them to figure out or a nice lump of a bar to take to a dealer and off load as a quick cash in when the price was right?

The argument against a bar is Grandchildren come along at intervals and tubes could be split again and again, and you/i would have to go out and buy another bar what ever the price to make it fare to the next child. Unless you then sold the bar and went back to tubes again.

I have already told my wife that as we stand at the moment my stack is my two Granddaughters.

I am not aiming for a spot price but just to try and keep beating my average.

As for the TAX man don't put it in a will but in a separate letter they all know about.Or give it out when you want before your demise,My solicitor asked me if i received any gifts of value from my late mother x amount of years prior to her death this would be added to the estate value and liable for inheritance tax.

[morezone]

I was lucky in that I only started stacking recently and I only need back £13.40 an oz on the silver to break even, with  gold it's not so good and I need over £800 an oz. 

 

£100/oz is a big number but as a percentage it is only around 15% but with your silver, it is 40%.

[HighlandTiger]

Having worked through and traded through the classic car bubble and seen many people lose the shirts off their backs in the late 1980's, I thought I would start a thread about exit strategies.  

 

Many on this site IMO have good accumulation strategies but how many have thought just as hard about their selling position and when to sell or if they are going to sell.

 

Points to take into consideration are :-

 

1What age are you going to stop accumulating?

 

65, then it'll be time to spend spend spend...

 

2 Liquidation  at some point you will need to exchange your Stack/collection for fiat either by drip or quickly.

 

Drip , drip, drip as a top up to my pensions, or for holidays, season tickets etc

 

 

3 Are you going to leave your stack/collection to family etc

 

Literally "over my dead body". Whatever is left after I die, will be spilt equally between kids and grandkids, with a little bit for stepkids and nieces and nephews

 

4 How are you going to sell

 

Bullion Vault for my allocated, straight into the bank,  Bullion dealer, Silver Forum, (if still around or something similar) or Ebay for the Sovs 

 

5 What is your % to spot you are aiming for.

 

Minimum spot price. As all my silver will be bought at spot and sold at spot through allocated PM companies, this is perfectly do-able.

 

6 The Taxman, think about the type of PMs you pay less tax on when you sell!!!!!   This is often over looked. Receipts are good if you have not made much money.

 

All my stack will be silver and gold in Bullion Vault, and gold sovs. Taking care to use up my CGT allowance with BV and if I go over my CGT I will sell sovs which are CGT exempt

 

7 Ebay vs dealer vs forums vs Gumtree vs Auction house.  I am not going to tell anyone where to sell and where is best, apart from to say, if you are trying to sell a newish proof coin or Perth proof 2oz or a Panda you are not in a rush to sell and you haven't got many coins to sell then buy it now on ebay maybe worth a go but be warned sellers have been burnt on ebay.

 

I will sell my sovs mainly to dealers, but if I can get a bit more through forums i would prefer to do that before hitting ebay.

 

I am currently selling off all my physical silver via Ebay, and exchanging it for gold sovs and Bullionvault silver. This exercise has shown me just how difficult it is to sell on the bay, and what a pain in the rear end it is to pack up items, and ship them off to people. I have no intention of wasting my pension years, on fecking about on ebay to live. I knew a guy, (a bus driver), was careful with his money, built up a great pension pot, both company and private, and was really looking forward to his retirement. On the day he retired, he had a massive party in my pub, great night was had by all.

 

He died 3 months later, heart attack.

 

It makes you realise, it's all well and good saving for your retirement, but don't expect to have 20-30 healthy years of living in it. If you get 10 years of decent health, then you will be doing well.   

[BaldyBob]

For those of you intending to pass your stack on, or any other investment for that matter, you must also spare a thought for your loved ones exit strategy.

 

I have a letter in my safe, which hopefully will be found if I have an untimely demise. I make it quite clear what I have, the best places to dispose of them, and a list of Forums (inc. usernames and passwords) where they can get assistance from such good people as yourself.

 

My biggest fear (apart from the untimely demise), is that my family are getting ripped off

[HelpingHands]

My 'fiat exit strategy' is perfected.

[HighlandTiger]

There is a theory that gold and silver is being sold cheap so Joe public will buy it and the government plan is to just confiscate it in the event of an economic crisis and then give us a digital currency while they pilfer it all,

 

Anyone who subscribes to this theory, should really readjust their tin foil hat, because they just havn't thought through the mechanics of it. 

 

This isn't 100 years ago, where the majority of Joe public didn't own a single piece of gold apart from a wedding ring. Practically every person now in the Western World owns gold and silver, be it a pair of earrings, a chain, ring, silver cutlery, or even in their electronic gear. That's before we get to the tiny tiny tiny minority of PM stackers.

 

Confiscating gold and silver today, would actually cost more to implement than the worth of the gold and silver itself. 

[HelpingHands]

I'll have to think about that but I would have thought that fewer homes these days contain silver items such as silverware, cutlery, candlesticks etc.

[HighlandTiger]

I bet most homes will have a silver picture frame or some silver baby christening items though.

[watchesandwhisky]

Strait to the refiners, No messing, PM can fall like a lead balloon as we all well know .. When the time comes I decide to get out I want out that day and hard cash paid.

[Kman]

I will play it by ear

 

Who knows how long ebay will be dominant for or what will rise up to take its place

 

Hopefully the PM community will have something like thesilverforum (if not thesilverforum); an inexpensive platform with a large base of collectors/stackers where we can all trade without the middle man sticking their hand in. 

[MikeOxlong]

Probably sell mine when im 65 so 42 years or so, exchange my coins for a hover car 

 

Who knows what the future will hold though!

[HighlandTiger]

Probably sell mine when im 65 so 42 years or so, exchange my coins for a hover car 

 

Who knows what the future will hold though!

By the time you are 65, the pension age should be about 88 years old, the way things are going  

[SilverPirate]

By the time you are 65, the pension age should be about 88 years old, the way things are going

If i  have to work till i am 88 i am changing my job to an Anne Summers rep, i won't mind going to work then.   

The trouble is at 88 there's a good possibility i wouldn't be able to remember why,how and who with.

[simon13]

If we have hover cars then we probably have functioning em drives which means cheap space travel which means asteroid mining which means the value of gold and silver plummets.

[MikeOxlong]

If we have hover cars then we probably have functioning em drives which means cheap space travel which means asteroid mining which means the value of gold and silver plummets.

Stop stifling my dreams! 

[HighlandTiger]

I don't mind if Pm's plummet then. I'll be 114 and all my pms would have been spent decades earlier

[DRooster]

Simon's right y'know.

Valuable metals is a short-term thing ... in geological time

[mrwebb697]

Be interesting to see how much mined asteroid dust will sell for per Oz