The ancient questions that many people ask themselves and us are, “When should I sell?”, Or “Now is the time to sell?” As you might have guessed, none of these questions have a simple answer.
In the general picture it is necessary to understand comprehensive market cycles:
3 stages of this metal market:
The first phase (stealth phase)
Smart money starts coming in when no one else sees the changes coming. These people are promising type. They are ready to act according to what they believe. They see ahead. They are not part of the crowd. This minority is the instigator of change. The crowd never initiates; they go only because the minority first incited!
Phase Two (Worry Wall Phase – Current Phase)
This is followed by institutional money such as banks, insurance companies, hedge funds, investment fund companies, etc. Also from here arise those companies and individuals that started in the first phase and have now become much larger. Companies are currently undergoing marketing for the mainstream crowd. Also, it is widely said that the market bubbles. Investors and bydliners are trying to determine whether they should buy, when they should buy, whether they should sell, whether it is not too late, etc. Worry everywhere!
Phase three (mania phase)
Now even solid bears have become believers. Everyone is talking about this sector, including Joe the Middle, the former Naisier and the Newspaper Boy. Unscrupulous sellers come out of the tree. It seems that the market is not going anywhere, but only up. You literally can’t lose – and if you don’t log in now, you’ll be in the dust forever (sounds like Florida real estate and stock points.) This sector is the best reward time for those who started and didn’t help out in phase one or two.
There is nothing new
It has happened many times before.
In 1982, smart money was bought by the children’s sector of technology companies when no one else paid attention to it. Then large institutions and venture capitalists began to enter around 1989-1991, the majority still unknown. In 1995, the main crowd began to enter the technical arena, bringing the price of this sector to the moon.
In the technology sector, America for almost thirteen years did not realize that it was boiling and preparing for an explosion. By the time most people realized this, it was already able to, and only those who had been pre-posted realized the tremendous success.
The current market of precious metals, in which we are today, is no different. So far, the mainstream has not entered. However, it boils just below the surface, ready to explode – just waiting for the time to be right for the main crowd – and not a minute earlier. Just look around. Do friends and colleagues talk about gold the same way people talk about the technology sector in the 1990s?
The unfortunate truth
Those who helped out in the first phase or in the second phase will never know what could have happened if they had hung there. However, those who follow the course and hold on with confidence will reap the rewards of the efforts of the seeds already sown by those who came out long before that.
When you enter, stay, when you leave, stay away:
If you have made your decision, whatever it may be, stay there or stay away. This input and output destroys your potential for great profits and success.
Additional factors to consider:
When considering whether to sell your precious metals, key factors need to be considered. Here is a list to review:
1. How much gold and silver do you own as a percentage of your investment, specifically how much of each metal?
2. Are you overweight in either silver or gold and you need to sell one to balance your reserves or get more of another metal?
3. Do you need to liquidate to get immediate money for emergency or alternative needs? Note that we often lend money to our clients and they use their metals to secure the loan. If you just need a situation in the short term, we can help with that.
4. Where is the market now and where is it headed in the long run?
Then there are many who do not ask or have not yet asked these questions. Most of our clients acquire gold and silver as long-term “containment” investments, anticipating the need to hedge against future inflation as well as global and market instability. Many also believe that there is a chance that their metals may reach a useful period even before they consider selling them. They also acquire them for portfolio diversity and often do not want to lose the extra asset class that their metals provide by selling them.