PM Exit Strategy


Pro member
Rating - 100%
33   0   0
What's everyone's exit strategy for PM's? There will be a time where PM's are "overvalued". The problem is, I don't want to trade my metals for a dying Currency unless I really need it.

I got into stacking for protection - protection from this exact environment we're in now. But eventually such insurances won't be as necessary as they are now. Preserving wealth through our shift to the new monetary paradigm is the ultimate goal for me and using that wealth to invest in other assets (like a house or land) is what I seek to do. The preservation of wealth is what presents the opportunity in the long-term and is a the main reason why I got into PM's. That doesn't mean I can't take advantage of investment opportunity PM's present along the way.

My exit strategy is dependant on opportunity. 20% of my silver stack I will keep for my retirement. Of that 20%, I wish to swap for gold if the ratio drops down to 10:1 or below.

10% is going to the kids when they turn 21, or once I feel they're ready to make the most of it. Depending on what happens between now and then, I may use it to buy other assets on their behalf.

The remaining 70% of my Silver stack is intended to be a liquid store of tangible wealth, never to be viewed as in investment in $$ terms, but as an investment in an income producing asset, or an asset that adds true value to my family's life.

I don't wish to sell any of my Gold unless it's necessary. I intend to pass my Gold to my kids when I die. It will otherwise serve it's purpose as insurance/protection up until that point. That makes sense to me.

Seperate to my stack is my premium collectors "stack". I don't buy collector pieces for investment at all. I'm only really interested in collector pieces that serve (or will serve) as a historical record - hence the reason I like Silver Shield. Having them made of silver or gold just adds to their significance. The artwork in the coins/rounds tells a story, and the metal their made of tells another story, and both are linked to stage of perception and understanding throughout most of my adult life to date. I cherish them like I do with memories of my past, and they're not something I view as "Up For Sale".

I'm keen to hear everyone's thoughts on this. We all stack and collect for various reasons and some stackers/collectors only see it as a financial investment. What's your price? And do you ever see yourself getting out of PM's entirely?
Exit plan (more an idea than a plan) is to sell PMs when other opportunities present to buy hard assets like land.
It's also an insurance policy in hard times that will allow us to weather severe economic storm for 5 years.
It is as another stacker friend calls it, "financial heroin". It truly is to me the greatest way to save real money & preserve buying power. It is to me, addictive.
Once the mental switch from polymer to precious takes place, there's no going back.
The time to sell is likely when the front page of the newspaper is reporting "Record High Gold Price" or some other similar type of hype about Gold being the best performing asset of these unprecedented times.  Then the guys at the pub are asking if you've got gold and telling you about why it's important.  That's the contrarian signal to get out.

As we get close I'll do a bit more research into the big turning points that ENDED the hyperinflations of the past.  Possibly the issuance of a new (stable) fiat currency backed by something tangible.  This will be the time to sell and I'll be holding for as long as I can until then.
Exit ! There will never be enough plastic money or stupid people's faces on fiat debt notes to make me ever bail on silver or gold. I know it's in my blood, and  my soul that I am beating the darkside in every ounce I stack. Fiat printer's are evil they turn man on man, nations on nations then use fiat as a weapon to decimate innocent lives of their basic needs , and then turn around and scolled other poor nations of human rights abuses. I'll keep my  metal hoard thank you
when gold was money, there was no exit strategy... when it was made illegal to own, you stored it in a vault somewhere.
There are always people who will take your gold and give you the cash
remember gold for Coins, yup!
there will be people who will take your gold for the CBDC credit  8)
It really shows what PM's can offer us when we're prepared to take them to the grave. It makes absolutely no sense to keep any retirement savings in cash, or a superannuation fund, when these fiat experiments all end in the same way.

I definitely don't intend to keep all of my PM's though. Most of my stack I've allocated to for trade at some point. I accept that I will probably have to utilise currency to trade into another asset but I have a long-term outlook for this. Luck favours the prepared, and we've seen this storm brewing for years.

But I think the next decade will challenge humanity in a horrific way. 10 years from now, we'll probably look back at this time and reminisce on how much freedom we had, and how many possibilities lay before us. Financial protections may not be enough and PM's may eventually become a burden due to environmental factors.

What kind of world do we imagine selling/trading into when the time comes? I see a world where inflation is excessive, the current financial system begins to fail, and real assets like PM's are accepted more broadly around the world by the masses. Simultaneously, a speculative frenzy could occur with PM's and there may be a short window of opportunity to transfer a position in PM's to a position in other assets.

I don't think we should underestimate just how damaging a real silver shortage to industry would be in this environment. The inability to access silver could bring tech companies to their knees. It could bring advanced militaries to their knees!!
STKR said:
What's everyone's exit strategy for PM's? There will be a time where PM's are "overvalued". The problem is, I don't want to trade my metals for a dying Currency unless I really need it.

They were considered by some to be "overvalued" back in 2011. I didn't sell any back then, and won't be selling any if it happens again.

My view is that unbacked fiat will eventually return to its natural value, which is zero. I think the CBDCs are a way to mitigate this, but they will ultimately fail too.

Even if I did eventually sell some, I would only be swapping it for something else with intrinsic value, perhaps some fertile land, food ... etc.