Should I sell now that there is a budget deal?

[Felixaaron]

I have not been considering selling any of my finds until tonight. First off, I think silver will continue its upward trend for a long time, so Im not leaving the game. I do think though that the recent $2 up swing was due to the budget worries.

Should I sell some (20-30ozt) of my finds thinking the price to buy them back will drop Monday now that the budget has been ironed out?

Anyone else thinking about flipping your silver finds?

 

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[yonico]

I do that sometimes.
what's really funny, is that sometimes i buy back literally the same coins i sold 2 days ago

 

[Jasonstar94]

Personally I would just hold onto it instead of kicking yourself for selling it and buying it back for more money.

 

[JD-GA]

I tend to agree the rapid rise was yet again due to inefficiency of our government, however those prices were going up in europe while our markets were sleeping. There might be some profit taking monday to drop it back a little but do you seriously see any hope in the future that would tell you to save dollars instead of silver? Neither does the rest of the world and that is the reason it continues to rise.

 

[jim4silver]

Generally speaking, I believe that "flipping" physical metals is not a smart idea unless you are perfectly correct in your timing or you have the opportunity to, say purchase a big amount of PMs well below spot and have the ability to do a quick turnaround sort of like how professional coin dealers do.

For the average PM holder or CRHer you will probably not do as well as you think because of the premium on both the buy and sell side of each transaction. If you have some "play" money and wish to do some short term trades, SLV and GLD are great because the premiums will be whatever your normal stock broker commissions are--like 7 bucks each side, etc. Many here will say that ETFs are bad because some say they don't have any metal to back them up, but even if such allegation were true it does not matter for short term trading to profit on the dips. Since you would presumably have your core PM positions in physical metal. I personally don't know if they have the metals to back them up or not, but I would not care if I am just short term trading these for fun and profit. I have never personally traded them because all my money is tied up in physical PMs, but I am saving some $$$$ to one day do this. I know of some other people though who have done well accumulating profits as the markets go up and down.

I think you should look at your physical PMs as "insurance" against the uncertain financial future we face and not as an investment per se. If you got the coins by CRHing then why worry about any possible price dips (losses) anyway since your "cost basis" is so low?

What happens to many of us amateurs who try to time the market by "flipping" our physical is that we sell, and then the price goes up further and we wind up buying back in at a higher price or we don't buy back in at all and we sit on the sideline with our PM positions gone, wishing we did not sell. This personally has happened to me in the past and it does not feel good.

Jim

 

[TheRandyMan]

In my opinion, and many others, the recent budget deal for 2011 will have no effect on silver and gold because the basis of their rising value is multi-faceted. The primary mover is the huge debts that governments have amassed. These debts, right now, are subject to the lowest interest rates in history. However, this will not always be the case. Most governments choose to deal with their debt problem by just printing more money, instead of cutting spending, and by doing so they devalue their currency. There are so many governments in this position...but when the US starts doing this, the biggest economy in the world and the world's reserve currency...it creates a level of uncertainty so huge that it drives the safe haven precious metals in a big way...This is what is driving gold and silver and other commodities up. Of course, there is increased demand from China, India and other emerging economies but this is not the main reason. The main reason is DEBT and the printing of dollars at an unprecedented level.

So, my short term target for silver is $50 by the end of the year, $75 within the election year in 2012. Gold will be moving up commensurately.

Bottom line. Don't sell unless you have an emergency need that you can meet no other way.

 

[timbobwey]

I'm not sellin any of mine. I did trade some a little while ago for some nice sterling silverware, but I actually wound up with more silver weight through the deal. So I came out ahead on that one. I think silver will do nothing but go up for the next few years, until our country figures out how to handle money. It's a wise investment to hold onto the silver that you have, and just keep adding to your pile. I personally think that silver has been undervalued for a long time, and maybe we'll finally see it balance out.

 

[SFBayArea]

I don't think budget deal has anything to do with it.. sell when they change one of the board members of the CFCT.. sell when QE2 completely ends.

 

[kb4iqm]

I'm not sellin any of mine. I did trade some a little while ago for some nice sterling silverware, but I actually wound up with more silver weight through the deal. So I came out ahead on that one. I think silver will do nothing but go up for the next few years, until our country figures out how to handle money. It's a wise investment to hold onto the silver that you have, and just keep adding to your pile. I personally think that silver has been undervalued for a long time, and maybe we'll finally see it balance out.

Wifey was a descendant of Jefferson Davis on her mothers side of the family. She was the last recipient of the family silver that had been handed down through the generations. The large silver serving platter alone weighs about 5 pounds. I still have it all in storage. Considered donating it to a museum, but with the state that our country is in, I doubt anything like that would be any safer in a museum. It would probably be confiscated by the govt, melted down, and used to make bullion to help bail out some random corrupt financial institution.

 

[timbobwey]

I bet your right KB, hold onto it. Who knows, the Gov. might even start coming after us to bail them out. Silver is silver to them, and they could say it belongs to them at anytime since it is U.S. coinage. I would bury mine in the ground if it ever happened.