When Is It Okay To Cash Out?

So when is it OK to take some profits from your metal investments? I think that answer is specific to the investor. I don’t think there’s a one answer fits all type of mentality among metal Stackers. Some stacker stack for the long-haul while others stack for the short term and leverage up whenever they can. Everyone has their own strategy and if it works for them, then it’s the right one.

If you ask, most stackers will tell you that the word "CASH" is a dirty little word anyhow. So maybe we should say "PROFITING OUT".

Investment strategies, leveraging up and pondering the question of taking profits or not ..

Leads me into the meat of today’s post. I wanted to share my own leveraging/taking profits story with you. I guess you could call it a "Story" although I don’t think it’s that long or that complicated.. and maybe not all that interesting either.

I’ve been known from time to time to sell some thing I purchased in the past in order to make or take profits. It’s why I purchased it in the first place, I knew I would eventually sell it at a higher price and take the profits. I don't particularly have any attachment to these things either, which doesn't cloud my decision making process.

But what would I do with these profits?

Usually I have an answer to this before I sell something. In this particular case today, I didn’t take profits but I actually reinvested them into two other items.

First the original investment..

My original investment was a small approximately 3 gram sized gold nugget. I happened across it a long time ago in a coin shop, held onto it for quite a while as it grew in value. Although it did grow in value, it did not grow in size although I wish it had. LOL.

It was a cute, highly cleaned and polished natural gold nugget. It was hard not to admire it for what it was. As you can see below it was about the size of a penny.

There came a day when gold prices rose rather quickly this past year, and the thought of selling it for a profit began weighing on my mind. I finally made the decision that I was going to sell Golden Nugget and reinvest the profits into silver and something for myself I had been eyeing up.

Bye Bye Gold Nugget (insert tears here)

In the blink of an eye that nugget was sold. I’m surprised how quickly I was able to sell it to a local shop in town. They actually paid me what I wanted for it which was a decent clip over spot price.

Reinvesting the profits ..

Not only did I reinvest the profits but I also reinvested the original amount spent on the gold. The first purchase was a 10 ounce bar of .999 fine silver. I bought the bar from JM bullion and it is the one pictured below;

A SilverTowne buffalo bar.

The rest of the money was used to purchase something that I WANTED. It wasn’t something that I needed but rather something that I enjoy and is pleasurable to my senses and myself..

A pocket watch!

I have a thing for pocket watches. I can’t explain it other than the appeal to my senses and I enjoy collecting them. I can say that they in themselves or an investment strategy of mine. I don’t pay top dollar for most of the watches I buy, but I do make sure that they function and are able to be serviced. There is a premium for a pocket watch that has been lightly used and works. This particular one fit the bill, And soon enough was added to my collection.

I thought it was the perfect way to reinvest the profits from my previous sale.
I guarantee you but this pocket watch will accrue in value over time. (cringe) Did I just say that? Yikes.. I probably shouldn’t say that, because there are NO Guarantees in life. I probably just jinxed myself and pocket watches will be a thing of the past and nobody will want them. After that the price will drop and I will be left holding the bag. Ha ha ha. It could happen. I enjoy them too much right now to part with them anyhow.

In a nutshell that was my story.

I told you it wasn’t very long and not very complicated. It was a strategy, maybe not the right strategy for everyone, but one for me and one I chose to use. I was getting rather bored of the gold, silver has some running room, and the watch was purely a pleasure purchase.

I added that bar of silver to two other bars.. Bringing the total to Three. My parents, also stackers, gave my wife and I those other two bars a while back, for Christmas. What a gift! Truly the gift that keeps on giving or keeps on growing in value. Not bad looking bars of silver for what they are; A great Stacking Bar!

Their design is the typical bar shape, highly polished, with a classic design. The edges are a little rough which I actually enjoy and appreciate in a bar like this one. The more machined and highly polished they are the less appealing they are to me. Just my opinion.

I hope you enjoyed my story. Don’t take it as financial advice. Always make your own decisions based on your own research and due diligence. Nothing beats doing your homework! Do your homework, And stack on my friends!

Thank you for swinging by my blog and checking out the post. Have a great day!

All words, pictures and art pieces are the sole property of B D Miller Gallery, unless otherwise noted and credited, and are not to be reproduced or copied without the prior written consent of B D Miller Gallery.

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