when to sell

[gkoogk]

Lets say you  buy silver at £10 an ounce..1 year from now fiat currency collapses..your silver is now worth £80 an ounce..do you sell your silver for their worthless paper money even if its 8x your investment ?

[HelpingHands]

If there is a currency collapse then you either keep your gold and silver or take the opportunity to buy other stuff going cheap (e.g. property).

You may be the only person around with liquidity.

[pho]

What I wonder though, let's say spot suddenly shoots to £80 and you want to offload your 1000oz (physical) stack, if you will actually find buyers willing to pay that price?
Is the LCS going to pay you £80 000 ?

[HighlandTiger]

What I wonder though, let's say spot suddenly shoots to £80 and you want to offload your 1000oz (physical) stack, if you will actually find buyers willing to pay that price?

Is the LCS going to pay you £80 000 ?

Maybe not but those daft buggers on ebay will

[ChrisSilver]

28 minutes ago, pho said:

What I wonder though, let's say spot suddenly shoots to £80 and you want to offload your 1000oz (physical) stack, if you will actually find buyers willing to pay that price?
Is the LCS going to pay you £80 000 ?

There will be even more buyers at £80 an once. It will be all over the news "silver reaches crazy new highs" that everyone will be rushing out to buy silver because they will all think it is going to the moon.

It will just be smart investors selling to uneducated investors. 

[Kman]

57 minutes ago, pho said:

What I wonder though, let's say spot suddenly shoots to £80 and you want to offload your 1000oz (physical) stack, if you will actually find buyers willing to pay that price?
Is the LCS going to pay you £80 000 ?

When did all the "We buy gold!" adverts start really popping up? when gold was low or when gold was high.

 

[Scuzzle]

I would suggest that if there is a currency collapse no matter what happens you wait until the solution is established and the new currency is in place.  I've always maintained my position is going to be if silver price doubles from what I paid for it and the currency is still viable then I'm cashing out half my stack which gets me back everything I have spent making the remaining half effectively "free".

[ApisMellifera]

I think in the event of an economic/currency collapse the most valuable items will be most likely food, water and electricity. I think at that time the majority of society will probably don't even think about precious metals and will wait/rely/demand or protest for gov action for a new currency. Agree, if silver suddenly hits £80 next year, the folks who think they missed the boat will be rushing into buy the metals.

 Just wondering who sold some silver when it peaked in 2011 and if you were able to sell around spot at back then?

[Bumble]

There are several different possible scenarios to consider:

1. PMs rise sharply in price, but the general inflation rate remains low. This probably means a bubble, like the one in 2011/12. Probably best to take some profit.

2. Gold and silver rise and so does everything else. Probably best to hold, if you continue to believe in the virtue of hard assets. Although if the central banks respond to inflation with higher interest rates, the opportunity cost of holding PMs will rise and this could drive the price down. At present, there is so much debt that interest rates simply cannot rise.

3. Currency collapse or currency reset. This would be strongly inflationary and hard assets would be the only thing worth having. Definitely hold PMs. Peter Schiff likes to predict that the US dollar will collapse, but I don't see how USD can fall without the currencies of its major trading partners falling with it, so to my mind currency collapse would be a general loss of confidence in unbacked fiat assets, which is another way of saying price inflation.

4. Debt jubilee. This would be a transfer of assets and theoretically could be done without price inflation, though in practice I strongly suspect it would be inflationary because governments would have to create additional currency to compensate those losing their savings and pensions. Definitely hold PMs, though after it happens, there would be room for interest rates to rise.

5. General economic collapse. PMs won't be much use here. Preppers will shine with their supplies of food, water, medicines and weapons. Maybe you could barter with silver coins, though you'd probably have more luck with tangible things such as bottles of whisky or packets of detergent.

[HawkHybrid]

stay dynamic,eg sell when you need the currency or when the

proceeds of your sale can help you buy a house.

 

I don't agree with a rate rise making the currency price of

pm's go down. india has a scheme to bank gold for currency

with interest payments. I don't think there were/are many

takers. surely any positive interest is better than 0% interest?

so the media would have you believe.

 

HH

[Bumble]

I think it depends on how risk averse you are. Right now I would rather pay 0.5% to store PMs than earn 0.5% at the bank, so my risk aversion is costing me 1% in opportunity cost. But if interest rates rose to 5% that would be an expensive proposition and I suspect a lot of investors would sell. India is perhaps a special case because of the cultural significance of holding (and wearing) one's wealth in gold.

[HawkHybrid]

if you hold paper pm's then it could possibly make sense

to move some/all of it into interest paying accounts when

the interest rate is high. paper holdings cannot be used

to satisfy industry orders unless they guarantee physical

delivery. people who hold physical work their sums out

differently. higher rates imply higher risk?

 

 

facts are facts, media suggestion such as the rate rise is too low

at 0.25% increase is only an excuse. I didn't see the media claim

that when they were all confident gold would drop below $1000

back in dec.

 

HH