Some time in the not too distant future, Silver will shoot higher....MUCH HIGHER!!! And when it does, the question of when to sell will need answering.
Every man has a price?
For some die hard silver stackers, price is immaterial - they will never sell the metal...it would be like selling a family member!! To them it's sacred and represents a genuine store of value. For others though, this will be when a particular price target is reached. But a problem with this approach is the fact that if the dollar slides, this price target might not equate to what it once did.
A solution might therefore be to price things in silver. For instance, if your holdings (whether it's 100, 250, 500 etc ounces) reach the price of a house, this might be an ideal 'exit' point.
Some analysts such as Mike Maloney, suggest that the gold to silver ratio might be the deciding factor. Mike suggests that an ideal time to sell silver is when the ratio falls below 20. But with the natural ratio in the ground being around 1:10, selling silver when it's a tenth the price of gold may be the best time.
But there are those who think that ratio will fall lower or actually go the other way. They argue that silver will become too valuable to use as money. How then do you put a number to that?
My thoughts
I have exposure to silver via both physical coins and mining shares. I will therefore apply Gresham's Law of "bad money drives out good". i.e. sell every last share before I'd ever consider selling a single ounce of physical. Why would I refer to my shares as bad money? Because the share certificates aren't in my name, there in the name of my brokerage. As for a price, I think one needs to be fairly realistic. I'd probably just be happy to pay off my mortgage from the proceeds.
....as for the silver coins, (buried in an air tight container), these I will not part with so easily......For they are my precious!!!
