Wrong strategy - regret my purchases - tip for starters

[Ron]

Hi guys,

Want to share my thoughts and maybe it might be helpful for starters in stacking who are - like me - maybe too enthousiast 😉

 

I started stacking only a few months ago. Basically for three reasons:

. If I don't buy PM, I think I might spend all my money, but more important:
. to have some extra money when I stop working and 
. have PM in case of financial crisis, collapse financial system

I started to buy coins like Maple Leafs, Kangaroos and Philharmoniker.  Seems great I think.

But then I wanted some variations and coins which looked more beautiful. So I started buying Silver Eagles, Britannia's. Still ok.

But then I wanted to buy real beautiful coins so I started to buy Queens Beasts, Red Back Spiders, Rectangular Dragons, Panda's, Giants of the Ice age etc... Absolutely beautiful coins but with higher premiums than the basic bullion coins.

 

Stacking went really fast. Within three months got myself over 200 OZ of Silver (mostly Male Leafs) and more than 1 Oz of gold

And then I started thinking. Thinking about the future and what I'm going to do when it's time to liquidate my stack. And realized that I just want to go to a bullion dealer and hand over one of more tubes with coins and get the cash. I don't think I am a guy who wants to sell individual coins on ebay or other marketplaces on the internet. Don't want to check if a coin has 'gained' some extra premiums, wait for a bid, negotiate, send the coins, waiting for money. I don't have the time for that and I think I don't like it. Just want to sell quick, preferably after silver prices has gone up.

So I wanted to share this with mostly other starters here on the forum. Think about the future and how you want to get rid of the PM before you decide to buy all kind of coins. I first bought and then started thinking.

And now I am sitting here with about 40 Oz of beautiful coins, most Panda's, while I'd rather had 2 tubes of Maple Leafs haha. Cause only now I realize that I am a stacker, not a collector (but I will not die because I bought 40 Oz of the 'wrong' coins)

If anybody wants to buy some, let me know. But most of you guys are in the UK, so sending the coins to the UK might be too expensive. Selling them on ebay to Eurepeans won't make much sense I think cause the coins are not rare and most coins can still be bought at dealers. I guess I'll just have to wait till the silverprices are exploded and then sell them for spot to a dealer. 

Besides all this, one of the main reasons I buy silver if in case of a financial crisis, collapse of financial system. At that time, who cares whether there's a Panda on a coin, or a Mammoth. At that time I think it's al about the silver and all coins are worth spotprice.

 

 

 

[mr-dead]

people often forget about exit strategy and the timescales involved in cashing out numismatic and semi numismatic coins in bulk.

 

nothing wrong with having a few choice pieces to keep things interesting and everyone is different but for me personally I prefer to hold the bulk in straight bullion silver/gold

[swanky]

If there is a financial collapse, what will you be selling your silver for?

[mr-dead]

1 minute ago, swanky said:

If there is a financial collapse, what will you be selling your silver for?

more than if you just held the same value in cash

[swanky]

2 minutes ago, mr-dead said:

more than if you just held the same value in cash

More what? Currency that has lost its value in the collapse? The point of stacking PM for a collapse is that the PM itself becomes the currency. So regarding exit strategy for this scenario, consider what most people would accept in a transaction.

[Ron]

1 minute ago, swanky said:

If there is a financial collapse, what will you be selling your silver for?

That question crossed my mind quite a few times. When nobody's trust fiat currency anymore, or when it's wordt nothing, I guess we get back in time and pay with silver. But cannot imagine it'll go that far. On the other hand, during financial crises, PM getting more worth. But off course, when there's a total collapse, we are all f*cked.

[StevenDS]

I currently have 80% of my purchase amount in 1 oz silver BU maples. The remaining 20% is spent on buying higher premium coins. I will never do more than 20% on premium coins.

My end goals is to sell those 20% for more maples and eventually sell the maples for gold bar(s) when the ratio makes sense.

It takes more time, but the profits on selling those premium coins has been beneficial to my average price of my maples.

[RoughDog]

I thought similar.  I sold some coins here, on the forum.

They sold fast and it was quite easy with the exception of taking decent photos.

Best strategy is to have a strategy.  I never formed a concrete one, mine was buy something beautiful or what I liked (within a reasonable premium range) that will cheer me up. 

Given what you said I suggest sticking to Britannia's or the most liquid UK coins (set yourself a percentage of your stack and stick to it).

As luck would have it with the exception of some very early coins mine were fairly sensible.

[Ron]

2 minutes ago, swanky said:

More what? Currency that has lost its value in the collapse? The point of stacking PM for a collapse is that the PM itself becomes the currency. So regarding exit strategy for this scenario, consider what most people would accept in a transaction.

But that's is exactly my point, in that situation, who cares if there's a panda on the coin, or a Mammoth or a dragon? It all comes down at the weight of the silver. That's why I regret buying all these panda's etc.

[RoughDog]

1 minute ago, Ron said:

But that's is exactly my point, in that situation, who cares if there's a panda on the coin, or a Mammoth or a dragon? It all comes down at the weight of the silver. That's why I regret buying all these panda's etc.

Some people do, they collect them.  Wouldn't worry too much about past purchases.

[Ron]

2 minutes ago, StevenDS said:

I currently have 80% of my purchase amount in 1 oz silver BU maples. The remaining 20% is spent on buying higher premium coins. I will never do more than 20% on premium coins.

My end goals is to sell those 20% for more maples and eventually sell the maples for gold bar(s) when the ratio makes sense.

It takes more time, but the profits on selling those premium coins has been beneficial to my average price of my maples.

That seems perfect to me and mostly the reason why I bought coins with a not so high premium, but then I realized I don't want to spend time on selling individual coins. So for me I think it is better to stick with Maples, but I still think that Panda's etc are absolute beautiful coins

[RoughDog]

Not financial advise but you might want to consider gold coins rather than bars.  You also may want to consider buying gold if that is what you really want.  That ratio may never happen or may be difficult to take advantage of.

[Ron]

4 minutes ago, RoughDog said:

Not financial advise but you might want to consider gold coins rather than bars.  You also may want to consider buying gold if that is what you really want.  That ratio may never happen or may be difficult to take advantage of.

Tnx. I try to have 2/3 silver and 1/3 gold

[Guest]

The problem with your strategy is that it does not work well unless there is a massive hike in Silver price or you buy in bulk 500oz at a time from a distributor type dealer and even then the price has to go up lots. The margins on Silver are wide and the odds are against you in my view.

PM at that level is NOT an investment it is a hedge against future inflation and that means you need to keep stuff for 5-15 years to allow this to work in your favour. If you like coins then go for semi-numismatic coins bought at issue and see if you can create an above inflation hike in value but you say you dont want to then sell individually so perhaps forget that one.

Either way you can be successful at hedging and you can be successful at saving but these types of low volumes on silver are NOT an investment.

[StevenDS]

50 minutes ago, Ron said:

I guess I'll just have to wait till the silverprices are exploded and then sell them for spot to a dealer.

Wait a while for both silver price and premium on those coins to increase. Even a dealer like goldsilver.be will pay more then spot price on those. Unless they have plenty in stock.

When competitively priced, that doesn't need to be silver spot, you will always find buyers here. There will always be other people who will realize the deal potential and have a longer term investment horizon then you. Or do want to invest the time to flip those coins for a profit on Ebay. Goldsilver.be lways provides a fast quote on mail. That will at least give you a good indication.

[kimchi]

If you're a stacker and/or SHTF type (both are valid imho) best to get the cheapest bullion that is as recognisable as possible for your location.

BUT! Any silver or gold is better than none!!!

So you can trade up your collectable coins for more weight as they start to carry more of a premium. But you are right, it can be a pain.

[Guest]

1 hour ago, mr-dead said:

people often forget about exit strategy and the timescales involved in cashing out numismatic and semi numismatic coins in bulk.

 

nothing wrong with having a few choice pieces to keep things interesting and everyone is different but for me personally I prefer to hold the bulk in straight bullion silver/gold

I'm 80%/90% a stacker myself and it's what I prefer usually. I get the generic coins that sites have and/or try to buy flat silver bars myself that stack more easily with each other. I try to never pay more than $1 over spot price of silver per ounce myself.

Going into 10%/20% a collector myself. I don't want to pay over $10 for any type of coin right now over spot. In case I had to go with melt value alone at some point.

I will get into gold more or so sometime down the road to as well and I will grow / expand out at some point in silver alone, but due to the way the world is I'm going more or so over spot for now myself (paid .29 cents over spot per coin due to this recent black friday event). I prefer the bulk pure melt value strategy myself though through my own personal methods that I use.

-----

When it comes to melt value alone it doesn't matter the type of coin and/or etc at that point if they are the same amount and such is what I figure for now myself it won't matter. That's a decision you'd have to make yourself though OP (obviously).

-----

Mulligan (slang - screwed up what I was going to say) on this post. I already posted it, but I got kind of screwed up with my thought.

[ilovesilverireallydo]

1 hour ago, mr-dead said:

 

 

....for me personally I prefer to hold the bulk in straight bullion silver/gold

You aint joking. We seen your stash  

[Ron]

1 hour ago, Numistacker said:

The problem with your strategy is that it does not work well unless there is a massive hike in Silver price or you buy in bulk 500oz at a time from a distributor type dealer and even then the price has to go up lots. The margins on Silver are wide and the odds are against you in my view.

PM at that level is NOT an investment it is a hedge against future inflation and that means you need to keep stuff for 5-15 years to allow this to work in your favour. If you like coins then go for semi-numismatic coins bought at issue and see if you can create an above inflation hike in value but you say you dont want to then sell individually so perhaps forget that one.

Either way you can be successful at hedging and you can be successful at saving but these types of low volumes on silver are NOT an investment.

I agree with you. 

My aim is to keep my PM for about 10-15 years, I am not looking for big profit, it's against Inflation as you say. Try to buy around 50 Oz Silver each month and hopefully some gold too but that al depends on my financial situation off course

Just don't want pandas etc anymore but only Maples and Philharmoniker etc. 

[TechSilver]

Like others have mentioned, gold and silver is CURRENCY

Went to British Museum last month, they had 1000's of years of currency - it was gold and silver

[silverdocket]

Biggest Mistake for me was buying silver bars from a UK dealer... i'm still feeling the pain from the VAT.....

 

[kimchi]

22 minutes ago, Ron said:

Just don't want pandas etc anymore but only Maples and Philharmoniker etc. 

Happy to swap Phillies for Pandas :)

5 minutes ago, silverdocket said:

Biggest Mistake for me was buying silver bars from a UK dealer... i'm still feeling the pain from the VAT.....

I'm in the same boat, but they do seem to go up eventually. I'm in healthy profit (on paper) on the 2016s I bought (not from a cheap UK dealer either!) at 25%, despite the VAT I paid.

[silverdocket]

9 minutes ago, kimchi said:

Happy to swap Phillies for Pandas

I'm in the same boat, but they do seem to go up eventually. I'm in healthy profit (on paper) on the 2016s I bought (not from a cheap UK dealer either!) at 25%, despite the VAT I paid.

 If I was to sell them now I would break even....

 But I'm keeping them for the long term 

[Ron]

16 minutes ago, kimchi said:

Happy to swap Phillies for Pandas

I'm in the same boat, but they do seem to go up eventually. I'm in healthy profit (on paper) on the 2016s I bought (not from a cheap UK dealer either!) at 25%, despite the VAT I paid.

Sure about the swap? I am not unwilling to that, if we can work something out

[mr-dead]

2 hours ago, swanky said:

More what? Currency that has lost its value in the collapse? The point of stacking PM for a collapse is that the PM itself becomes the currency. So regarding exit strategy for this scenario, consider what most people would accept in a transaction.

I don't really view PM's as being a transaction medium in the event of a currency collapse.  I view it is as a method to retain your wealth after a currency collapse until the replacement is introduced.