It's been a couple of months since I did a post about having an Exit plan, seeing is how there are so many new stackers to the platform, I figured it might be a good time to do another one.
EXIT PLAN
Well its been over 6 years since anyone of us had to think about selling our silver and gold and some haven't been stacking that long anyways.
Planning is a must:
If you are stacking silver or gold, you have to have a plan in place to sell when the time comes. All the silver and gold that you have been stacking will not do you any good if you can not sell it.
Relationship is a must:
Building relationships is a key part of my plan. I have two local dealers that I buy from. I try to visit them weekly and if not weekly at least monthly. They know me by name and I know them. A lot of you follow my Friday pawn shop blog. I visit him every week and try to buy something everytime I go in there, now what this has done is built a realtionship between the two of us. He will be one of my buyers when it's time to sell.
Online can be by phone as well.
You might be asking, how do I build a relationship with someone, when I buy online? It is pretty simple, every other order or every two orders call the order in, come one you can remember how we did it before the internet came along. Provident metals is the company I do most of my online ordering from. Every other order gets placed by phone. This allows me to talk to someone, carry on a conversation with. Think about it how many people could possibly work there? They need to know you, cause when you sell to them you have to talk to them on the phone anyways, so wouldn't be easier if they already knew you.
should size matter?
It will and it does. Look we all want that big ole 100oz silver bar, I Know I have one. But it will be very hard to sell if silver goes up. Think about it for a second, if silver went up to $100.00 that bar is going to cost someone $10,000 to buy, are people willing to buy that large, probably not. So I stick to 1ozers and 10ozers. Think about this before you fill your safe up with 100oz bars. There is a reason you don't see 100oz bars of gold!!
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Just as you can't walk into your local Wal-Mart today and exchange a 5oz bar of silver for a basket of groceries, I imagine during a "reset scenario", there will be more and more avenues opening up for the exchange of PMs for goods and necessities. Currently, your local coin stores are just not able to handle large inflows and outflows like a big bank or a brokerage handles stocks, and that bottle-neck is one of the downsides to stacking PMs. There's no quick in and quick out.
But, using the Bitcoin community as an example, the wider the acceptance by the general populace, the more opportunities there will be to convert PMs into a new currency.
Every day, you hear of more and more businesses that will accept Bitcoin as a means of payment. That was not the case even two years ago (unless you were that lucky pizza shop that sold 2 pies for 20,000 BTC, I hope they at least gave him extra pepperoni!!!) I imagine that PMs will follow the same route and have more options as the value increases (and I'm not talking about those rip-off Cash-For-Gold scam stores).
Just my humble opinion.
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Great opinion, thanks buddy
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I think it depends on the scenario, if it's just that silver rises in price significantly, the structures and avenues would remain largely unchanged. I don't see metal becoming a valid day to day payment form until after the USD is gone. But in a catastrophic fiscal event scenario, I think you're right; bartering, alternative currencies, and the like are all on the table. I think it's prudent to have a plan for either case.
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When the time comes you turn it all into GOLD and cackle at the history of Western Civilization!
...and rock some btc on yer' phone...
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Spoken like a true stacker with a little BTC flair. Thanks buddy
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@raybrockman - Do you usually get the same representative from Provident when you call? I usually use JM Bullion. I have a feeling if I called in, they would just encourage me to order online.
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They have 3 that handle the orders. All three of them know me, hey, JMBullion buys now, did you know that? Thanks for dropping by.
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Actually, I didn't know that. Thank you for the heads up. I'll keep that in mind for when the day comes that it is time to let some silver go.
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These are really good things to think about and plan for. I used to visit the pawn shops frequently and built a pretty good relationship with the coin dealer there. He's no longer there, I think it may be time to build a new relationship for potential selling, if they are considering buying while the price is high.
I have a feeling that "when it's time", silver will be more valuable for barter than for trading for fiat paper. It will probably take a lot of stacks of cash to equal a 100 oz bar. The paper might be more useful for making kites for my children, like the Germans did in 1922. @ironshield
@ironshield
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Hell you can just about use the fiat to make a kit now. Thanks for the visit buddy
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Your post had been curated by the @buildawhale team and mentioned here:
https://steemit.com/buildawhale/@buildawhale/buildawhale-curation-digest-9-22-17
You have received a Whaleshare Token upvote (@officialfuzzy) thanks to @akrid and you have received an upvote from me as well.
Keep up the good work and original content, we appreciate it!
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@raybrockman, this is excellent advice, and something that I have never thought about. It makes total sense. Thanks so much for publishing this article.
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Thanks
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Great advice, you can stack till the cows come home, but if there is no-one to buy it your'e just stuck with a pile of pretty metal. I can just see myself doing some covert selling in the early hours of the morning in some rural lay-by. Best to get those relationships sorted now !!
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You're right. Thanks for the comment and visit.
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Good advise to have a plan in place. Although I do think you will have buyers for the big bars too. If silver goes up a lot it will cause a lot of buzz. People who never collected silver before will want in. Kind of like Bitcoin, when it was selling for $8 a coin I'm sure people at the time never thought it would go up past $4000. And at $4000 there are tons of coins being bought and sold every second. The audience for a 100oz bar will be smaller but I don't think it will be as hard to get rid of as some people think. I wouldn't recommend just stacking 100oz bars, your idea of 1 oz and 10 oz bars is the best advise. I want to get a 100 oz bar just to pick it up and hold it once in a while, but I wouldn't get more than 1 or 2 for the stack.
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I have 2, and thats enough, when its time to sell, I want to beable to sell it all to one or two people. Thanks for dropping by.
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Years ago, in 2010 i think it was, i inherited some family money. Silver was about $26 cad per ounce. Anyway, i went with my Dad, and a certified cheque from the bank, to VBCE mainbranch downtown Vancouver and walked out with 12 x 100 ounce bars and 66 rounds. I had it in a rolling carry-on piece of luggage and it weighed about 70lbs! Both me and my Da felt like total gangsters!
Anyway, yadda yadda, silver proceeded to shoot past $40 and i began to sell the bars back... With no problem!
I squandered much of it, turned sone of it into gold...and, in about 2012 i made my first bitcoin purchase with money i got from selling one of the last of 'em...
Interestingly (perhaps) i also secured a personal loan from a buddy of mine by offering two of them as collateral. In the last year i paid my debt off and got the two hunskies back, but alas, they too have since been converted to bitcoin also.
My point is, there are buyers for larger pieces. But i do agree, singles and up to 10 oz is probably the way to go for local ease of sale.
Cheers fellas!
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Great info and tips. Being prepared to exit is necessary strategy. These days I'm thinking having some 5 and 10 oz bars are a good idea because if you were to sell online (eBay for example) shipping would be easier for a larger item than 1 oz coins.
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Good point, thanks for the visit.
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Enjoyed this article. One of my to do items is to go sell gold and silver at a local shop. This will help me understand how liquid and how much of my investment comes back.
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Don't sell a lot ☺ thanks for the visit.
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Some good stuff here. Thanks for the tip on staying small
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You are welcome
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From what I've seen and read gold and other precious metals seem to currently have their value based relative to everything else, especially currencies, which should be pretty obvious. A good strategy in my books and many others would be to watch the markets for the shift downward, sell modest amounts of the stuff on the way down, obviously not all of it, to acquire other assets that will benefit you either from a market standpoint or a survival standpoint. This would be good to do on the market uptick for precious metals in the immediate future of a market crash because after a while precious metals would start to level out and decline again due to alternatives like bitcoin.
The assets purchased from an uptick in the value of precious metals would definitely benefit you in the long run if and when the economy was to stabilize. When that uptick is gone, it's gone, so I would put it to use, not just ride it up until it's too late.
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Very good thought, thanks for the visit.
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Nice write up. What goes up does come down. The exit strategy should include a minimum that is set aside, never ever to be sold, unless starvation is staring you in the face. I still have silver coins that my grandmother gave me almost 50 years ago. She told me then, don't spend this money. These silver coins are "real money", and you may need it to buy food one day. I still listen to her instructions and by the looks of my waste, starvation is a long ways away.
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Lets hope that no one has to go through starvation, but its a good point. Thanks for the visit.
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Excellent post. It is very wise to figure out an exit strategy or plan as you call it. A good relationship with your coinshop is helpful indeed but there are more possibilities to create in your own network. Buying and storing metals with companies like Goldrepublic.nl where you can buy, store and sell your precious metals are also a possibility. I also think that other tradingplatforms will arise as demands will rise.
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Very true, thanks for the visit.
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Good suggestions Ray. Highly appreciated.
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Anytime @lucky.digger thanks for the visit.
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Excellent points. Knowing where your exits are is a vital part of any planning from military operations to silver stacking.
I have found and started to build a relationship with a local guy/company who mostly does large retail purchases in the first place. He is willing to buy and sell from individuals as well and he will likely be one of my first stops should I ever need to sell.
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Smart dude👆👆 thanks for the visit.
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