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Gr33nday43
Penny Hoarding Member
Uzbekistan
884 Posts |
 Posted - 08/05/2009 : 21:10:30
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I think this has been brought up before, however I am having trouble finding it. What is your exit strategy for your copper hoard? Is it tied to the value of the dollar, the stock market, gold and silver, or some other indicator? I think most agree every investment needs an exit strategy, and copper would be included in that. Personally, I think mixture of all of the indicators aforementioned would be the best bet. Since stock markets tend to rise during moderate bursts of inflation, you could also use the gold and silver values and the dollar value in your calculation. BTW: As most of us know, even a long term investment needs an exit strategy. Unless you plan on holding them for future generations, it is best to find out what your selling point is, and it would be silly to base your selling point saying that you will sell at say, 5x face.
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http://coppermillions.blogspot.com/
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oober
1000+ Penny Miser Member
USA
1051 Posts |
Posted - 08/05/2009 : 21:22:45
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| My exit strategy wont even be developed until the melt ban is lifted. At that time then I will probably follow a ratio... Either G:C or S:C... |
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jonflyfish
Penny Hoarding Member
USA
548 Posts |
Posted - 08/06/2009 : 00:04:15
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| No exit for currency strategy here. Plan is to keep metal assets indefinitely... |
The first panacea for a mismanaged nation is inflation of the currency; second is war. Both bring a temporary (and false) prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunities. |
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biglouddrunk
Penny Sorter Member
86 Posts |
Posted - 08/06/2009 : 01:36:52
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Our Pennies of course is rise and fall with the value of copper. In my humble opinion as the stock market goes up so too does the value of our pennies because copper goes up. As the US dollar declines the value of our pennies increases relative to the face value of the penny. This is why we are on the brick of pennies going up a lot because as the world comes out of the recession the stock market will go up like we have seen it do in the past few months. Also the US dollar has been declining. Finally as soon as asset values stabilize we will start to see inflation due to the efforts by the US and world governments printing of money and T-bills.
To get back to your question I plan on selling out when regular people out side of our loyal group start to pull coppers. |
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Nickelmeister
Penny Collector Member
Canada
299 Posts |
Posted - 08/06/2009 : 08:53:24
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Personally, I think the very concept of an "exit strategy" goes against the fundamental principle of what we (or at least I) are doing. To me, getting into metals IS the exit strategy. I am exiting the vulnerable fiat currencies. If copper/gold/silver etc start skyrocketing, WHY on earth would I want to convert BACK to worthless paper?!? If our metals were to increase substantially in dollar-based "value", that would be a poor time to sell - unless you are hoping to cash out and rebuy on a pullback, which could be a risky idea...
I don't know what others are thinking, but for my metals are not just an investment. Over the last couple of years I have become a full-fledged hard-money enthusiast. That means, psychologically my metals ARE my money - not the other way around. |
www.WinnipegGoldBuyer.com |
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fasTTcar
Penny Collector Member
Canada
314 Posts |
Posted - 08/06/2009 : 09:19:23
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Have to disagree to some extent meister.
While I too believe that metals are more valuable than paper, until they are accepted at the grocery store, there is still a need for government issued currency.
I build my wealth in metals, but I need "money" to live. |
www.londongoldbuyer.com |
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novillero
Penny Sorter Member
USA
40 Posts |
Posted - 08/06/2009 : 09:34:45
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| I don't have much - especially in comparison to others here, but my plan is to just hoard. I'll let my grandchildren decide. |
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Nickelmeister
Penny Collector Member
Canada
299 Posts |
Posted - 08/06/2009 : 09:56:50
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quote:
Originally posted by fasTTcar
Have to disagree to some extent meister.
While I too believe that metals are more valuable than paper, until they are accepted at the grocery store, there is still a need for government issued currency.
I build my wealth in metals, but I need "money" to live.
Absolutely. And that is why I still have the majority of my assets in day-to-day cash, real estate, equities and other tangibles. I'm just saying that my metals - like yours - are a perpetual store of wealth. This property is one of the defining characteristics of "money", which fiat does not satisfy due to relentless inflation. |
www.WinnipegGoldBuyer.com |
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barrytrot
Penny Collector Member
USA
409 Posts |
Posted - 08/06/2009 : 10:24:23
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quote:
Originally posted by fasTTcar
Have to disagree to some extent meister.
While I too believe that metals are more valuable than paper, until they are accepted at the grocery store, there is still a need for government issued currency.
I build my wealth in metals, but I need "money" to live.
That reminds me of the time I took a roll of Presidential dollars to the grocery store and the clerk told me "we can't take those". I stood there and told her, "the government says these save the government money."
She eventually allowed it. I'm guessing she just chocked it up to the "shoplifting budget" though :) |
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PennySaved
Penny Collector Member
359 Posts |
Posted - 08/06/2009 : 10:55:04
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Personally, I feel if its gets to the point where you can pay off big debts (ie a house mortgage, a car, etc) then it may be worth selling some of one's metal holdings to pay off those debts.
If/When major inflation comes our way, a small investment in metals may skyrocket and allow one to pay off a major debt. |
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Mikep2020
Penny Pincher Member
USA
205 Posts |
Posted - 08/06/2009 : 11:12:03
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| I don't have an exit strategy at the moment, but I will probably unload some to pay down debt like Pennysaved mentioned above. The rest will be used for bartering after TSHTF |
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jtm3
Penny Collector Member
USA
398 Posts |
Posted - 08/06/2009 : 11:31:20
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| My exit strategy is to save as "real money" during economic hardship/collapse. |
Turn your old video game consoles (and games) into GOLD or COPPER!
Buy/Sell/Trade sub-forum
Firearms are second only to the Constitution in importance; they are the peoples' liberty's teeth.
George Washington |
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dakota1955
Penny Hoarding Member
800 Posts |
Posted - 08/06/2009 : 12:06:39
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| I am going to keep them until they bring 3 to 4 time face or until I have to move. Because I would not want to move them. |
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dp2007
Penny Sorter Member
35 Posts |
Posted - 08/06/2009 : 12:16:10
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| Death. I want the family to find my 40 boxes ($1,000.00) in copper among my things. |
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Cody8404
Penny Hoarding Member
USA
546 Posts |
Posted - 08/06/2009 : 12:37:53
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My plan is a tiered plan. I think the most likely is during a period of inflation the cents will gain on the dollar.
1- As the dollar drops beyond what people want it to be I can trade my copper cents for paper dollars for what I need. At this point I would expect a few coppers to buy several dollars.
2- When price controls begin I would take my coppers to the store and offer to pay for what I need with copper. This takes nothing extra. The coins would remain as coins, and all would know just what I am offering.
3- Cash – If I come to a period and the dollar is strong and I still need cash, then take them to the bank and cash them in. They will always be worth their face value.
4- Copper – If the US economy completely falls out and the melt ban is lifted and we go back to sticks and stones they will be copper and can be used for items like clubs, axe heads, etc.
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Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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AGgressive Metal
Penny Hoarding Member
USA
789 Posts |
Posted - 08/06/2009 : 12:54:54
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quote:
Originally posted by Cody8404
[4- Copper – If the US economy completely falls out and the melt ban is lifted and we go back to sticks and stones they will be copper and can be used for items like clubs, axe heads, etc.
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And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484
http://www.randpaul2010.com/ |
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jonflyfish
Penny Hoarding Member
USA
548 Posts |
Posted - 08/06/2009 : 23:33:26
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Personally I think many miss the boat when it comes to metal as an asset. While anything is possible I do not anticipate ever paying for goods and services in PM's. I do believe that the fiat system is beyond repair and that the best way to avoid losing exponential amounts of wealth is to exchange fiat for something real (sorry, having faith in helicopter Ben and the FOMC are not 'real'). Commodity fundamentals also dictate "opportunity", whereas monetary and fiscal policy dictate disaster. The choice is easy. The consequences will be incredible. Just my musings as a full time trader.
Cheers |
The first panacea for a mismanaged nation is inflation of the currency; second is war. Both bring a temporary (and false) prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunities. |
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Nickelless
Moderator
USA
4392 Posts |
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L1011
Penny Pincher Member
219 Posts |
Posted - 08/07/2009 : 00:01:42
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quote:
Originally posted by Nickelless
Here's my exit strategy...when you see this:
Uhm...Nickelless, I was thinking you were.....well nevermind...what's all that for, a loaf of bread? |
Edited by - L1011 on 08/07/2009 00:02:50 |
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Nickelless
Moderator
USA
4392 Posts |
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theo
Penny Collector Member
USA
327 Posts |
Posted - 08/07/2009 : 00:15:24
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I read somewhere that a roll of toilet paper costs 150,000 Zimbabwean dollars (its probably much more by now). I was thinking that they could solve that problem by making their currency softer and more absorbent.
Just trying to be helpful. |
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theo
Penny Collector Member
USA
327 Posts |
Posted - 08/07/2009 : 00:32:39
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Now back to the issue at hand. As some of the others have pointed out, its very difficult to plan out an exit strategy until we see how things unfold. Having said that, I think that the time to part with any asset is when another asset represents a greater value. So if I run low on food WTSHTF, it might be a good idea to trade some of my silver for canned food, seeds or gardening tools as those assets would represent more value to me at that time. Or perhaps if silver outperforms gold to the extent that gold is under-valued, a silver for gold trade might make sense.
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Ant
Moderator
USA
842 Posts |
Posted - 08/07/2009 : 08:31:32
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quote:
Originally posted by theo
I read somewhere that a roll of toilet paper costs 150,000 Zimbabwean dollars (its probably much more by now). I was thinking that they could solve that problem by making their currency softer and more absorbent.
ZING! |
No, man. You gotta keep goin'. What am I gonna do? Quit? That's not an option. Life's a garden. Dig it? You make it work for you. You never give up, man. That's my philosophy. --Joe Dirt
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Wag more, bark less. |
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AGgressive Metal
Penny Hoarding Member
USA
789 Posts |
Posted - 08/07/2009 : 11:12:52
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| Exit strategy is not the right word - I think it will be more like "pay as you go": when you need to buy some groceries, you take some PMs to the coin dealer or whoever and get fiat, then immediately spend the fiat for food/bills/etc before it loses value. When you need more food/bill payment/etc, repeat. Slowly exit as you need cash post-hyper-inflation. Hopefully enough people will catch on in your area and a PM barter market will develop (just imagine an existing flea market, but you can pay with silver), but I wouldn't count on it. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484
http://www.randpaul2010.com/ |
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Dalsuh
Penny Collector Member
USA
399 Posts |
Posted - 08/07/2009 : 12:38:41
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| I agree with AGgressive Metal's strategy of "pay as you go". Also, if the melt ban is ever lifted, it might be better to hold on to your coppers. |
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goodcents
Penny Collector Member
USA
474 Posts |
Posted - 08/07/2009 : 15:39:57
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| No exit strategy....like another member said. The kids/grandkids will have fun looking at silver, copper, and hopefully a little gold. |
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Topic |
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Exit Strategy
