Dollar Profit Averaging When Selling Silver?
I never thought I'd be writing this anytime soon. Most of us stackers are used to seeing silver price languish or drop. With the exception of OG stackers, most of us haven't seen a major bull run in silver like we're seeing now. So what do you do when you want to sell?
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Most of us have heard the term Dollar Cost Averaging when it comes to buying. The idea is to buy steadily, so your average cost per ounce trends lower. When selling, the idea is similar. None of us can time the dips, so why would we think we can time the peaks?
I'm no financial expert, but it would seem prudent if you were to sell when we can see price continuing to rise, to do it incrementally. Instead of averaging costs for purchasing, average your profit when selling. I guess we'll need to either invent the term Dollar Profit Averaging, or if it already exists dust it off and start using it.
So, what does Dollar Profit Averaging look like? I suppose it all depends on what you think silver will do. If you think it's going to tank in the short-term, you may have set spot price increments you plan to sell at so you may not catch the peak, but you won't hold it all the way to the bottom. Others may have a more bullish outlook and think the price will continue to soar, so their target increments might be further apart. Regardless of which camp you're in, keep tabs on the market, be aware, and keep stacking.
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I think my problem is most of my silver is collectible pieces that I don't necessarily want to part with, so unless the price gets up around $300 per ounce or something crazy like that, I likely will just hold it.
Yeah, that's hard. I have a lot of collectible pieces as well. I'm trying to focus purely on bullion since I took a break fron that for a year or so.
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Agreed. Nobody can time the peak of anything without plain old luck. In 2011, I started selling around $45 an ounce while silver was still in great demand. It peaked a few weeks later and then fell off the chart.
But…… this scenario is completely different. While I’m not saying it won’t drop, that’s inevitable. But I personally think that’s many months down the road. I see $150 silver this year, that’s just my opinion. It could possibly go higher. Just my opinion from the information I’ve seen and read. But it’s all relative. This is global this go around, not just the United States is involved like 2011. Industry demand was not what it was either in 2011 either. In my opinion I don’t believe silver will ever drop below $50 an ounce ever again. Just my opinion.
I’ve sold a little silver, but I’ve used the money to put it into gold. I refuse to leave my money in fiat, I trust metals and will wait it all out with my metals in hand.
I think you're right about this run. Silver has evolved from being a monetary metal to having major industrial uses. Like you said, it's globally now, which is a momentum the bankers don't have the capacity to suppress. All they can do is delay the inevitable. I wouldn't be surprised if we see $150-200/ounce by summer.
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Yup, I agree! I sold a little silver, and I will be selling again! Wish me luck!
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Good luck! I'm planning to hold and swap some to gold once the ratio tightens up a little more.
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Just so you know… Silver should reach its peak at $9 per ounce in Stable U.S. Coinage before the end of this year… That’s 900 per ounce if you’re still measuring in Fiat USD’s…
I don't see how that would be possible. Spot price is increasing rapidly, but not that quickly. They'd have to massively re-value the dollar, which would cause horrible hyperinflation.
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Hyperinflation will become a distant memory, once we switch to U.S. Stable Coinage…
I may be selling, but really it will be switching to gold.
Wait… You’ll be going the wrong way… I would sell all my Gold before ever selling a single ounce of Silver…
Well my friend, its kinda irrelevant, because theres no metals available in these parts all! So for now, its bury and wait.
Sometimes a person doesn’t have a choice… But I would sell my Gold first, if I had to…
That's my plan, too! I'm just waiting for the ratio to tighten up more.
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There's nothing wrong with taking some profit off the table.
At least we get that itch scratched.
My finances are very good at this time and far from needing any extra cash unless a huge unforeseen expense comes up that would prompt me to liquidate some. Every stacker has his or her own plan and targets, or should have a plan so that the action you do take is based on a well thought out plan than by a spur of the moment impulse.
!PIMP
Exactly! Slow, steady and methodical is always better than acting on an emotional impulse.
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It is absolutely OK to take profits...
My stack are devided into two parts. The fisrt one are coins I don't want to sell like the Czech Lion colletions etc.
The second are the cheapest pieces (at the buy time) and those are random pieces I can sell for gold or anything else.
That's smart! I have collectible pieces I'll never part with, and my kids will inherit. In the meantime, I get to pull them out and admire their beauty. 😁
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I have some coins as colletion... Lions, Chinese lunar... I would like keep Liberty with Elizabeth and Charles from the samé year etc...
But don't care about every year the same like Kangaroo, Maple...