Longer term silver exit strategy

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Nautickleone

New Member
As a relative newbie to silver stacking, i'd appreciate thoughts on how others plan to exit as the price rises, as i realise silvers industrial demands make it very different to other commodities. From what i understand, the demand for silver has outstripped supply for some years and unlike retail investors, commercial demand is likely to pay higher prices simply to secure supply.
So does this mean small scale retail investors should be able to continue to find buyers even if the price takes off?
 
Well you can sell it for fiat currency, but most of us are stacking silver because we don't trust fiat currency, so unless you are immediately going to buy something like a property or other investment then that is not what I would be doing.

You have probably heard of a Gold to Silver Ratio (GSR) Swap; at the moment gold is relatively cheap compared to silver, last year it would have taken 100 ounces of silver to buy a single ounce of gold, now that silver is more expensive it only takes 51 ounces of silver to buy gold. When it takes 45 ounces of silver to buy an ounce of gold I am going to take 20% of my silver and swap it for gold. If it drops down to 40, I will take another 20% and convert to gold, rinse and repeat until you run out of silver or the GSR stabilises.

The idea is that gold and silver are constantly changing price and at any one point, one will be considered to be cheap and the other over priced. You just swap between them. Of course if your goal is to get rid of the silver this won't work, you will just end up with more of it.
 
Good question.

I remember silver low 20's and the same questions being posed should silver reach $50-60 god forbid $100 an ounce.
I was watching a YouTube video this morning from Thompson's Coins and they were saying they had been inundated with emails, requests and store shoppers with shelves being stripped of silver. They have some top end stuff so I'm assuming their premiums aren't that low, and yet the buyers come, spot price was $130 on the day the video was recorded.So it's a tricky one.
Personally I think there will always be buyers at all affordability levels.

If the concern is affordability from future buyers, maybe start with stacking smaller denomination silver. If Spanner Monkey gets his $1k silver, surely most will have a spare $350 to invest into a 1966 Round Fifty.
 
braz said:
Thompson's Coins and they were saying they had been inundated with emails, requests and store shoppers with shelves being stripped of silver. They have some top end stuff so I'm assuming their premiums aren't that low, and yet the buyers come
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I doubt a collectable coin stores "shelves are being stripped". Their site shows an endless amount of silver stock.

The collectable coin market is dead atm, mostly due to people realising 95% of the collectable coins has turned out to be a terrible investment.
 
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I don't doubt they are busy. Im sure they are getting flooded with people walking in asking to buy bullion, only to find out they only sell high premium collectable coins. They then walk out without buying anything, only to have the next person ask the same question. :eek:
 
I think they do sell a lot. If you look at their recent arrivals, a lot have them have been sold.
 
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