I often look back at the peaks and valleys in the metals markets and do the Ifs and Buts that Andy talks about in this thread: http://www.survivalmonkey.com/forum/financial-cents/1857-gold-silver-markets-glance.html I'm going to track some hunches in this thread - times I've thought about selling physical bullion to wait for a dip to buyback. We can debate the premiums of buying vs. the discounts of selling physical but I'm going to go with Apmex buy/sell prices for the spread. (I would sell local for much less of a discount but let's keep it verifiable). Random year: 1 oz American Eagle Gold Coins | Buy Gold Online | APMEX.com I should have started this at $1365 gold but we'll use todays price of $1327 for an air trade of 20 1 oz American eagles. I'm not gonna factor my original purchase price on this trade but we can assume I'd be happy with it I tend to come up with my trading dreams based on gut feelings, economic factors and the rings of foam the beer leaves on my glass so this may be interesting. It may not. 10/21/2010 Selling 20 GAE at 1327 NY Spot. Apmex Sell Price = $1393.29 (reference) Apmex Buy price $1,357.30 x 20 = $27,146 So now I got $27,146 of worthless FRNs in my hand... Will the train leave me behind or will I be able to buy back in? I have my target but you'll have to wait for a follow up post to see it.
You ALSO have to factor in 28% federal tax on "collectibles" if you start swapping large amounts of gold or silver for FRNs......don't forget that.
