Selling and buying back in?

N

Nate1010

New Member
Hey guys,I was a bit hesitant to write this post as it shows how green I am but i have a question on reselling.
I just want to get some opinions or know where some reliable education information would be.
I've been thinking about selling part of my collection and buying as the price drops. Of course theirs no guarantee it will but i've noticed it's been consistently down since I bought in at an average of $31.00 US an ounce. Just curious what the opinions of some veteran stackers would be.

I do believe the price will go up in the future but just curious what the best thing to do in the short term would be. I would hate silver to drop to $20.00 and not been able fully capitalize on it. I'm still planning on buying more if it drops that low but its the question on what to do with my current collection. Bite the bullet?
 
There are so many global events yet that could happen and send the price of silver flying in either direction... just study the fundamentals and if your convinced, buy if not sell. Charts look crap silver going to $0 and then QE3... BOOM
 
If you can time the market and buy and sell at a profit, all power to you. For me I could never time the market correctly.

As a matter of interest, how many ozs are we referring to?
 
Nate1010 said:
Hey guys,I was a bit hesitant to write this post as it shows how green I am but i have a question on reselling.
I just want to get some opinions or know where some reliable education information would be.
I've been thinking about selling part of my collection and buying as the price drops. Of course theirs no guarantee it will but i've noticed it's been consistently down since I bought in at an average of $31.00 US an ounce. Just curious what the opinions of some veteran stackers would be.

I do believe the price will go up in the future but just curious what the best thing to do in the short term would be. I would hate silver to drop to $20.00 and not been able fully capitalize on it. I'm still planning on buying more if it drops that low but its the question on what to do with my current collection. Bite the bullet?
Click to expand...

Don't sell at a loss, no point.

If you can profit then sure take some profit and keep the cash ready for when (if) silver drops to $20 so you can buy like mad if you think it's gonna happen.

You have to remember every time you buy or sell there are transaction costs involved such as postage and/or fees.

Also despite there being no real shortage of physical silver yet, it's not very easy to immediately source 1000oz silver in one go so you have to remember that when buying back in.

If I were you I would just keep saving up money and not buying anymore physical silver for a while as opposed to offloading your stack.
 
Nate1010 said:
Not too many Boston, 50-75
Click to expand...

Definitely just hold then, don't sell.

If you had 100oz, sold now and afterwards Silver dropped 20% you would still only get to buy 125oz (assuming no transaction costs).
 
Been thinking of doing the same thing.No reason it can't fall to $20.
(my guess is $23)
Don't think it will go back to $50 soon.0r $40.I think a bad Economic climate is bad for Silver.
Better to sell at a small loss than a larger one.
Certainly will get out of Silver if it goes up again.
I think its had its run ,for a while.
 
Peter said:
Been thinking of doing the same thing.No reason it can't fall to $20.
Don't think it will go back to $50 soon.0r $40.I think a bad Economic climate is bad for Silver.
better to sell at a small loss than a larger one.
Click to expand...


Yeah I choose to learn through the school of hard Knox and guess I am. It's good though keeps my head in the game.
 
Depends on what you type of silver you are holding/selling. If you are holding semi numismatics (lunars, kooks etc) then I would be hesitant. Even if silver dropped to $15/oz you probably wouldn't be able to get back in at your purchase or selling price.

However - if you are talking straight bars etc that hold no real numismatic value then go for it. But do it in stages and carefully with "reverse" stop losses. Look for the next spike (prices jump say $1-$2 over a period of a couple of days and then settle for a few days) and then unload 25% of your holding. Set yourself a stop loss of say a further $2 oz meaning that if the price rises again by $2 oz then maybe this is the reversal of the downtrend and you will get back in when the price has a small correction. If this happens then you have cost yourself maybe $40-$80 total - no big deal because you have still caught the upswing with 75% of your holding. If prices fall though then you have limited your losses by only 75% of your holdings losing value and having available cash to maybe reinvest. If you think that maybe silver will fall further you can repeat the process but move your stop loss lower again. This way - you will gradually unload your holding while maintaining a silver portfolio and be able to buy back in either at your anticipated price or eventually your stop loss will be hit.

Protection of investing capital (however you value this) should be the number 1 priority. Just because prices have fallen doesn't mean that you should hit the panic button - however you do need to consider the "why's" of your investment holdings and make a decision from there. If you believe it is on a hiding to nowhere - get out! If however you think this is only a temporary "hiccup" then consider your options. Doing nothing opens you up to more losses but higher potential profits (but remember, prices have to increase 10% from here just for you to break even never mind make a profit), running the above scenario allows you to limit your losses, while not eliminating your profits if prices start to increase and will give you some available cash if/when you decide to get back in.

malachii
 
malachii's post resonates Warren Buffett's:

"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1"
 
Even though I bought 2kg of silver a couple of weeks ago, the price is looking ordinary and a bit worrying.The problem we will have if more and more sell is an over supply. That means prices going down. Could take a long time to get even close to $40 again. I've noticed a few trying to sell hundreds of ounces over the last week or so, but not having much luck. Could be for other reasons why there not having luck i think.

Could be a devistating 2012 if people lose sight of where silver should be in a matter of years.(Future supply shortages with minimal mining and discoveries. Maybe cost increases to produce).

Then again commodities could be a lot safer than the stockmarket. Just need a slight hiccup and the ASX200 could be 3,000 to 3,250 before you know it. Kiss your super goodbye even more then.

Right now i would say Silver and Gold will out perform the oz market whether we go up or down.

After all this i'm buying on the dips to $25. Any lower i'm sitting and holding.



Scorp
 
malachii said:
Depends on what you type of silver you are holding/selling. If you are holding semi numismatics (lunars, kooks etc) then I would be hesitant. Even if silver dropped to $15/oz you probably wouldn't be able to get back in at your purchase or selling price.

However - if you are talking straight bars etc that hold no real numismatic value then go for it. But do it in stages and carefully with "reverse" stop losses. Look for the next spike (prices jump say $1-$2 over a period of a couple of days and then settle for a few days) and then unload 25% of your holding. Set yourself a stop loss of say a further $2 oz meaning that if the price rises again by $2 oz then maybe this is the reversal of the downtrend and you will get back in when the price has a small correction. If this happens then you have cost yourself maybe $40-$80 total - no big deal because you have still caught the upswing with 75% of your holding. If prices fall though then you have limited your losses by only 75% of your holdings losing value and having available cash to maybe reinvest. If you think that maybe silver will fall further you can repeat the process but move your stop loss lower again. This way - you will gradually unload your holding while maintaining a silver portfolio and be able to buy back in either at your anticipated price or eventually your stop loss will be hit.

Protection of investing capital (however you value this) should be the number 1 priority. Just because prices have fallen doesn't mean that you should hit the panic button - however you do need to consider the "why's" of your investment holdings and make a decision from there. If you believe it is on a hiding to nowhere - get out! If however you think this is only a temporary "hiccup" then consider your options. Doing nothing opens you up to more losses but higher potential profits (but remember, prices have to increase 10% from here just for you to break even never mind make a profit), running the above scenario allows you to limit your losses, while not eliminating your profits if prices start to increase and will give you some available cash if/when you decide to get back in.

malachii
Click to expand...

Really helpful man, thanks for that. The more info the better.
 
You must log in or register to reply here.
Back
Top