Selling Gold & Silver

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Dwig's picture
Dwig
Status: Silver Member (Offline)
Joined: Mar 4 2009
Posts: 141
Selling Gold & Silver

Chris has given us a good and comprehensive guide to "Buying Gold &Silver".  I'd like to see some discussion, maybe even a good guide, to a complementary topic: Selling Gold & Silver.

Assuming I've bought a fair amount of PMs, and have it in my possession, under what circumstances would I sell it, and how much at a time?  And what time frame(s) are we talking about?

Clearly, this could turn into a hard question to give a single answer, given the range of possible scenarios that might occur, and the possible time frames involved.

Chris says "As I mentioned before, that date for me is when I can exchange an ounce of gold for an acre of productive land."  If acquiring land is the goal, might there not be other ways to get it?  And, would the best time to buy land necessarily be the same time as when the price of gold equals that of an acre?

OK, suppose you're buying to hedge against inflation, so that you can maintain your wealth while currency assets decline.  Do you hold on until you have to sell it to pay for necessities (or maybe for defense in a time of increasing lawlessness)?  Or maybe, do you have a target in mind, such as 300% increase in value against the dollar?  Or, do you anticipate that inflation will burn itself out, at which time you'd convert the PMs (partially or completely) back to some currency?

I think what I'm trying to elicit here is the "future thinking" of those in this community that have committed to serious acquisition of PMs.  And I'm wondering if most have pretty much the same kind of thing in mind, or if there are significant differences?
 

nameofthegame's picture
nameofthegame
Status: Member (Offline)
Joined: Sep 25 2012
Posts: 15
Perhaps inflation will be so

Perhaps inflation will be so bad that people will resort to trading these metals for currency. That means not 'selling at the peak,' but rather storing whatever you don't consume in silver and gold.

Stocks, on the other hand, you'd have to get the timing right. Heck, maybe, you'll be able to take your profits in gold later on.

locky man's picture
locky man
Status: Member (Offline)
Joined: Oct 6 2012
Posts: 5
Selling Gold & Silver

Hiii.....

the right time of Selling Gold & Silver is given in detail in the below link check it out..

http://www.marketoracle.co.uk/Article26074.html

 

Dwig's picture
Dwig
Status: Silver Member (Offline)
Joined: Mar 4 2009
Posts: 141
Right time to sell gold? Peak gold?

the right time of Selling Gold & Silver is given in detail in the below link check it out..

http://www.marketoracle.co.uk/Article26074.html

Thanks, locky.

In that article, there's a quote: "long-term investors before this checked to see if this was a sufficient correction to disinvest and when will be the right time to re-enter the market". This and other statements in the article make it appear that the motivation to sell is based on whether "the market" will do better than gold.  That sounds like a different kind of consideration than what most members here have.

(By the way, another statement caught my eye: "We are seeing producers just manage to replace the ounces they have mined with new discoveries, but at such a slow pace that, at best, we expect little to no growth in newly mined supplies, despite the rising gold price." This sounds suspiciously like the situation with oil.  So, does this mean we're approaching (or in) "peak gold"?  Is there data available on the historic production rate of gold?

locky man's picture
locky man
Status: Member (Offline)
Joined: Oct 6 2012
Posts: 5
World Gold Production: 1900 until 2010

Your r always most welcome Dwig.. And here is the Historic production rate of Gold...

 

From 1900 until 2010, that is 110 years, world gold production has been steadily risen, except for four periods. See chart for historical world gold production numbers:

world gold production 1900 2010 World Gold Production: 1900 until 2010

 

In the year 1900, in total 386 tons of gold was produced around the world. This is a mere 15% of gold mining in 2010, which was 2500 tons. Nowadays, within two years more gold is produced than in the one thousand years of the Middle Ages.

Responsible for production increases are technological advantages, regarding the construction of mines, and the excavation of gold from soil materials. Today it is worth to mine gold from stones where the content of the precious metal is only 1 gram per 1 ton of soil material. Another factor contributing towards increased gold mining are improved means to locate gold deposits.

A look at the gold chart reveals four drops in gold production: During the two world wars, gold production naturally declined. A third major decline started in 1970 and lasted for five years. Thereafter, gold production stood at a constant level of 1,200 annual tons. For the fourth decline, 2002, 2008, are responsible rising production costs. In combination with low demand for gold, and consequently a low gold price, gold production became not feasible anymore. The decline in world gold production set in when the gold price already started to rise. Mining companies were first reluctant to step up production, as it was not clear whether the greater interest in gold was only a short-term trend. Besides, increasing gold mining needs preparation and time. Thus, an immediate production expansion is not possible.

You can get help from this as well.

Investment Demand for Gold

Jewelry Demand for Gold

Central Banks and Gold

Gold Production

Industry Demand for Gold

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