Liquidity of PM when price is high?

G

Gerbil

New Member
Thank you for helping me out with my novice question.

I understand we are currently in a predominantly seller's market for precious metals.

When spot prices rise considerably, as they have temporarily done in recent years, how difficult is it for holders of PM to capitalise on the increase in market value by means of private sales?

Was anyone interested in buying PM when prices were towards $30 and above, in recent years? Did anyone manage to make private sales of bullion at all during these times?

Or, as I suspect, is sale back to dealer the only way of selling when spot prices are high?

Thanks - Dan (Australia)
 
If the prices for PM's spike it will be due to market hysteria and you wouldn't have a problem finding a willing buyer.

Have a look at all the other peaks in other asset classes, eg RE, cryptos, tech stocks recently, buyers get into a frenzy and just buy buy buy, when LTC were $50, there was no shortage of buyers entering the market for the first time.
 
In 2011 when prices were high, premiums were even higher - recall seeing a PAMP 1kg silver bar change hands here at something like $200 over spot, because there was a buyer craze as people tried to enter the market before it got away from them.

Wasn't a shortage of buyers at high prices, it was a shortage of sellers.
 
It is people buying PM's that make the price rise in the first place so NO you won't have any trouble selling.
 
People were buying all the way up to and including $48.

One thing to consider though: what you buy depends on who you plan on selling it to.

If you're intending on selling privately, you might want to think about paying a higher premium for some smaller sized bullion. The smaller it is, the more people there are who will be able to afford it, regardless of how high the price goes.
 
Gerbil said:
how difficult is it for holders of PM to capitalise on the increase in market value by means of private sales?

Was anyone interested in buying PM when prices were towards $30 and above, in recent years?

Or, as I suspect, is sale back to dealer the only way of selling when spot prices are high?
Click to expand...


I've often wonder these questions myself, when I come to sell up and cash out & retire ( hopefully within 10 years ) who on earth am I gona sell to ?

I'll probably have near half a million worth of PM ( that's without a massive to the moon type rise), I'm going to want to selling it all in one go to one buyer rather than dribs and drabs.

I'm also going to want cash as it was all bought with cash, who in hell is gona have that sort of cash to buy metals ?

Leaves me in a it of a pickle !
 
Yes, it is all a dilemna....a good one however.
When something is cheap, nobody is interested........but once the price is much higher and still moving, everybody wants a piece. It is what happened to real estate in my area. We had houses at $20,000 dollars back in the late 90's and you could have bought any number........10 years later and 5 times the price and there is a big demand.

Silver will eventually blow-off in price but as with all blow-offs, it will occur quite quickly. What drives the spike is enormous demand. What ends the spike is running out of buyers. Anyone that wants in is in.
It will be impossible to off load at the peak...........trying to offload large quantities in a short space of time will require some groundwork in the lead up to the spike. Find a bullion/coin dealer that has the capacity to move it for you through consignment for example. You will pay for this to occur but it will much easier than ebay. The problems with ebay and high silver price is the inevitable criminal element that will be watching for large quantities from private sellers being sold.
 
the optimist said:
Gerbil said:
how difficult is it for holders of PM to capitalise on the increase in market value by means of private sales?

Was anyone interested in buying PM when prices were towards $30 and above, in recent years?

Or, as I suspect, is sale back to dealer the only way of selling when spot prices are high?
Click to expand...


I've often wonder these questions myself, when I come to sell up and cash out & retire ( hopefully within 10 years ) who on earth am I gona sell to ?

I'll probably have near half a million worth of PM ( that's without a massive to the moon type rise), I'm going to want to selling it all in one go to one buyer rather than dribs and drabs.

I'm also going to want cash as it was all bought with cash, who in hell is gona have that sort of cash to buy metals ?

Leaves me in a it of a pickle !
Click to expand...

Congratulations on having the worst and most ludicrous exit strategy in stacking history. :rolleyes:
 
Maybe each time you buy an ounce or two you could ask if they happen to do half million cash buybacks?

Why cash?....be all cryptos or sea shells in 10 years time.
 
Eureka Moments said:
Why cash?

....be all cryptos or sea shells in 10 years time.
Click to expand...

Putting half a million in your account is a sure fire way to get a tax investigation and lots of questions, Cash is King !

In 10 years time I reckon we'll all look back and laugh about how people put money into crypto currencies.
100% Online - totally anonymous - backed by absolutely nothing ? Think I'll stick to bangers & mash !
 
the optimist said:
Eureka Moments said:
Why cash?

....be all cryptos or sea shells in 10 years time.
Click to expand...

Putting half a million in your account is a sure fire way to get a tax investigation and lots of questions, Cash is King !

In 10 years time I reckon we'll all look back and laugh about how people put money into crypto currencies.
100% Online - totally anonymous - backed by absolutely nothing ? Think I'll stick to bangers & mash !
Click to expand...

+1 Optimist, I still can't get my head around that worthless crap
 
Of course the person giving you the cash will have it sitting in a drawer and so there wont be any red flagged bank withdrawal at their end to worry about.

And anyway, who needs a receipt when buying a bloody great stack from someone? :Sarcasmsmiley:
 
lol $30

wont be seeing that again for years and by then inflation would have made it less of a high.
 
Thanks for the attention to this topic.

It's good to hear the old tales of what the market was like in the price spike days.

It does seem obvious that things do sell when their price is high, since this reflects more demand. What I was wondering about is whether whether price hikes are predominantly driven by large-scale purchasers - industry, government, large stakeholders etc. with a relative suppression of buying interest amongst the shrewd private stackers/investors who buy small quantities of bullion.

It sounds from what you're all saying, though, that that idea isn't right. Except for what you said Bullion Baron. How come some types of bullion fetched high premiums at that time and some didn't??
 
I remember during march/april on ebay that 90% silver coins of 25 gram sold for 26-30 euro, with on average over a dozen people bidding.
I bought some abit earlier, in february, for 20 euro. Later on, 19, then 18, and now they (sometimes) go for 14 euro, usually 15 though, way more than spot. I collected a whole bunch of these, my average is around 18 because at some point I concentrated on more junk.
Just to say, yes plenty buyers.
Of course, they may have learnt better since.
Me included.
 
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