Generic vs Semi-numismatic Philosophy and exit strategies. Should you stack one or the other .... or both?

Generic, semi-numismatic and numismatic coins. Coins, rounds and bars, poured or minted. There are many options in the world of bullion and precious metal (physical) investment.

I have seen that a lot (not all) of the steemsilvergold community are hardcore ounce stackers, generic and as close to spot as possible. Don’t get me wrong, I have 300 odd ounces of generic silver, bought close to spot (well as close as I could in New Zealand) but I also have a few hundred ounces of semi-numismatic coins. As you may be able to tell from my previous post, most of which are Silver Shield.

My generic stack is great and I enjoy having a good ounce count, but they do not get a lot of love. They are vacuum packed and pretty much have stayed hidden from sight since I bought them. I do have some of my Silver shield coins out on display as a way of introducing new comers to the world of silver.

So why even bother with semi-numismatic when you could have more ounces in your stack if you were just stacking generic or ASE for weight?

Most of us have a figure in mind, and when silver hit’s that price we will try and off load our stack (or most, some of us will try and hold some silver forever) but what do you do until then? I am also sure most of us will have a figure in mind that we will stop buying silver and just wait for the price to go up. I know some of my stacking friends have heard the figures of $1000 silver and that is the figure they have in mind, they have stacked what they think will be enough silver to be set once it hits that price BUT if it only goes to $500 then they do not have enough, and will have to wait. This is why I keep buying silver while I can, the more you have the earlier you can get out (so to speak) to achieve your goals. If 100 ounces will do you at a spot price of $1000, then 200 ounces will achieve you goals at $500, or you could sell 100 ounces and be half way there and still have more silver to ride the price up, but have breathing room if the price goes back down.

I have figured that with the semi-numismatics you have some options to sell silver, while waiting for that “to the moon” spot price - to capitalise on the price AS it goes up. Being collectible, the secondary market is obviously smaller but there are always people that are collectors, or want to store their wealth in some fine products rather than generic. Think jewellery and the difference of people buying basic Gold jewellery or spending 2 - 200 times the price on quality crafted jewellery with the same amount of gold. So if the spot price is $100 then the semi-numismatics might fetch $200 etc…

Even in this bear market I have been able to sell semi-numismatics at a profit, while silver is the lowest it has been since I started stacking. This enabled me to buy some generic coins to replace the ounces I sold and gave me some extra money which was invested into the crypto markets. 

The way I look at it is that even in a worst case scenario I can sell the semi-numismatics at spot price with a small loss. 

I will be selling my semi-numismatics when the bull run finally hits, I wont be in a rush because in that case the longer it takes the more I can probably ask for them. It is also a great way to diversify your investment a little, adding to your ounce stack and also having some sexy looking coins. 

I know that there will be some people that absolutely do not agree with my strategy but please remember we are all taking a gamble on how things will play out when we are investing in dollar alternative investments. I am sure if you are reading this, then like me you have a solid faith in the fundamentals of precious metals and yes, by all accounts it should rocket up when this inverse bubble pops BUT we could well be wrong as well. Who really knows. We can only do the best with the information we have, and I am still pretty sure that I would rather hold my wealth in my hands than entrust it to the shady people that run the banks! 

If you are only stacking for the ounces then good on you, I cannot fault you for that philosophy. I think once a reasonable count is reached then it can be a good idea to diversify, a little semi-numismatic, a little gold and a little crypto. Cover your bases and you cant go wrong. I still buy generic bullion and BU when I have some spare money but I love the PROOFS from Silver Shield, the messages really resonate with me and I cant wait to have coins that call out the bullshit in the world at the moment once the system collapses. 

I also realise that there are a number of ways in which an exit strategy might present itself. It may be that we are selling our silver at an extremely high spot price (compared to now) or we may even be trading it as a legit form of currency by that stage. You might be trading it for gold if the ratio returns to a nice number. You may use it as collateral to borrow fiat currency (shudder at the thought) to buy investment businesses that can service and repay the debt, leaving you with an asset and your stack as well. I have no idea how it will play out at the end, but I do believe that covering your bases will help. What I am pretty confident on is that I want to be holding physical metals in my hot little sweaty hand when the music finally stops playing on this global economy!!

This is what makes this form of investment so exciting, so many possibilities for getting in and for getting out of your Metals portfolio!

Have fun with your silver, appreciate its beauty (generic or semi-numismatics) take it out and look it over but most of all, keep adding to your stack while we still can!

@silvernova