Selling silver

[Lewis132]

Hi guys, I was thinking about this yesterday so I thought this would be the place to ask. If silver skyrockets due to something like a financial crisis who do you plan to sell your silver to as other investors won't likely want to pay such high prices?

[ilovesilverireallydo]

14 minutes ago, Lewis132 said:

Hi guys, I was thinking about this yesterday so I thought this would be the place to ask. If silver skyrockets due to something like a financial crisis who do you plan to sell your silver to as other investors won't likely want to pay such high prices?

There will always be buyers, regardless of price. When silver was $50 an ounce, people were still buying. 

However if you ever want to cash out, selling to some places is smooth, such as bullion shops etc. 

[Norskgeld]

Agreed...people will jump on board the gravy train when they see prices increasing and buyers will be everywhere.

Just look at Bitcoin...huge price increases and people were flocking to buy it.

 

[vand]

It will be much easier to sell PMs during a true panic than it is today as people will fall over themselves to get into safe-havens.

[PansPurse]

I generally agree with the above. Nominally prices are determined by supply and demand, a spike in price menas that there's huge demand so selling should be easy, if anything HODLing will be the difficult part

[Thelonerangershorse]

34 minutes ago, PansPurse said:

HODLing will be the difficult

Agreed, HODLing is always difficult.

[vand]

2 hours ago, PansPurse said:

I generally agree with the above. Nominally prices are determined by supply and demand, a spike in price menas that there's huge demand so selling should be easy, if anything HODLing will be the difficult part

In a SHTF scenario the difficulty will not be offoading your PMs, but being prepared to swap your PMs for fiat notes that may be losing chunks of value by the day.

Human nature, being what it is, makes it incredibly difficult to sell into price spikes and buy during price crashes. If it were easy then everyone would do it and be rich.

[PansPurse]

1 minute ago, vand said:

In a SHTF scenario the difficulty will not be offoading your PMs, but being prepared to swap your PMs for fiat notes that may be losing chunks of value by the day.

Frankly, SHTF really doesn't crop up on my radar. If stuff gets that bad I'll have way bigger things to think about than PMs

[mr-dead]

A good example, there were buyers of bitcoin when it hit $20k so I dont think we have to worry about silver hitting £50/oz.

 

Also the price will only ever hit what people are paying otherwise it will pull back.

[Lewis132]

Thanks guys  @mr-dead @PansPurse @vand @Thelonerangershorse @Norskgeld @ilovesilverireallydo a lot of really good points made especially with the Bitcoin example!

[matrawr]

What happened to btc when it went to 20k? It crashed and still is in a downtrend if silver when to hit $50 again that would put me nicely in profit. But 2018 I don't think would be the year to sell your stack probably wait until 2020 atleast!

[ilovesilverireallydo]

1 hour ago, PansPurse said:

Frankly, SHTF really doesn't crop up on my radar. If stuff gets that bad I'll have way bigger things to think about than PMs

Yep - I am not a conspiracy nut, but I do believe in stockpiling certain essentials just in case, and have a plan to load up if the signs are clear - people often react too late in a SHTF scenario. 

[Thelonerangershorse]

1 hour ago, vand said:

In a SHTF scenario the difficulty will not be offoading your PMs, but being prepared to swap your PMs for fiat notes that may be losing chunks of value by the day.

I was thinking more of bartering PM's for food, I'd only consider fiat if I was out of loo roll, though since we went to plastic notes I'm not as keen on that option.

[Xander]

Who, in 1975 would have thought we would today pay £1000+ for 1 oz of gold.

[sixgun]

i remember when silver was heading up to $50 and i was looking at buying silver on ebay. i did not buy and did not buy for several years.

At the time i was not concerned by the price being £35 or £40 an ounce, what was important was where i thought the price was going.

If the spot price of silver were £100/oz why would it be more difficult to sell than when it is £15/oz?

Indeed there is an argument that it will be easier. At those levels the manipulation of price would have broken down, supply and demand would be starting to kick in. Demand will have taken price to that level. There will be much more interest in silver. It would no longer be seen as a dead investment for losers (which it is now - exactly the time to load up the truck). We are here b/c we do not see it as a dead investment, we can see the opportunities. Many more would awaken to silver when the price got moving. Buyers would start clambering and pay over the odds. The higher the price the greater the clamber.

[PansPurse]

I guess a high price also means one can undercut the market (offering your pm at less than spot price) to prompt a quick sale and still be making a good return on the initial price paid

[Ryland]

There is always buyers, in fact the higher the price goes the more buyers there are!  Remember what the wise man does in the beginning, the fool does in the end.

[aztecstargazer]

The best strategy I have found is to have a single place where you buy your precious metal and sell it back to them. I buy from APMEX and will sell it back to them. This is especially important when it comes to generic rounds. Most large precious metals dealers will only buy-back rounds you buy from them.

This also goes into my opinion that you should not over diversify your holdings. I fell victim to this trap when I first started. I was all about weight and bought the generics and liked to buy rounds which I didn't have. I liked to collect them, but then I had a problem because the only person willing to buy them back was my local coin shop. I have nothing against LCS's, they have the benefit of allowing you to liquidate small amounts of your PM's and allow you to sell quickly in case of emergencies. But they always buy far below current spot prices. 

You also have to take into consideration the numismatic value of your holdings and the time you have given for the premium to grow in value. This should be sold on the secondary market, such as ebay. This takes longer and carries the risk of selling to strangers who might be shady.

[Pete]

Just traded in the equivalent of a third of an ounce for a tea bag and some hot water in a French cafe on the top of a mountain earlier today.

[metallica73]

On 2/5/2018 at 13:55, PansPurse said:

Frankly, SHTF really doesn't crop up on my radar. If stuff gets that bad I'll have way bigger things to think about than PMs

Back in the day when we saw near $50 silver, if you had made that statement on youtube comments you would have been branded a non-believer by a ton of people

Never saw the point of 'prepping' myself but each to their own, they'll be the ones laughing I guess should anything doomsdayish ever happen.

 

[Ryland]

1 hour ago, Pete said:

Just traded in the equivalent of a third of an ounce for a tea bag and some hot water in a French cafe on the top of a mountain earlier today.

And that’s how you know silver is undervalued.  Walk through any store and see the plastic junk from China that’s selling for the equivalent of an ounce of silver!