Silver Rises Over 120% YTD 
Most gold and silver investors spend years thinking about when to buy. Few spend enough time thinking about when to sell gold and silver — or what comes next.
When do you sell? What do you sell for? How do you avoid giving half your gains back to taxes?
These are the questions Mike Maloney gets asked more than almost anything else. And in a recent conversation with GoldSilver analyst Alan Hibbard, he laid out his full exit strategy framework — including the moves he’s already started making.
Here’s what you need to know.
Can Anyone Actually Time the Top of a Gold Bull Market?
Let’s start with the uncomfortable truth: nobody can call the exact peak.
“Anybody that says they can nail the top is lying,” Mike says. “Anybody that does is just lucky.”
That’s not pessimism. It’s the foundation of a smart exit strategy.
If you can’t predict the peak with precision, you need a process that doesn’t require you to. Waiting for the “perfect moment” is how investors panic-sell on the way down instead of locking in gains on the way up.
Mike’s solution: sell in stages, not all at once.
The Financial System Isn’t Safer — And You Know It As risks mount, see why gold and silver are projected to keep shining in 2026 and beyond.
How Should You Sell Gold and Silver? Try the 20% Rule
Most investors think about selling as a single decision. Mike treats it as a process.
His approach: when indicators signal a top may be near, sell 20% of your position. Then 20% of what remains. Then 20% again.
The math works in your favor. You’re never fully out — which means you never have to be exactly right. If gold keeps climbing after your first sale, the 80% you still hold captures most of those gains. Yes, you left some upside on the table. But not enough to matter.
As Mike puts it: “If gold doubles, the other 80% that you had — you make such gains on it, it doesn’t really matter that you sold that 20% a little too early.”
The real value of this approach is psychological. Selling in layers removes the pressure of picking a single exit point. You’re locking in gains systematically — not reacting to headlines or second-guessing yourself at the worst possible moment.
No perfect timing required.
What Indicators Tell You When to Sell Gold and Silver?
Mike tracks 22 indicators to identify when precious metals are approaching their peak. Some are widely followed. Others are proprietary. Here are the three he’s discussed publicly — and what each one is telling him.
- The Gold/Silver Ratio: Silver’s Most Important Signal
The gold/silver ratio measures how many ounces of silver it takes to buy one ounce of gold. Ratios above 80 are historically extreme. Above 100 — where we’ve spent considerable time recently — Mike calls it “totally insane.”
That kind of imbalance doesn’t last. When the ratio compresses back lower, silver’s outperformance phase is likely peaking.
“If it drops to 25, you just got four times the performance of gold. If it drops to 20, you got five times.”
At that point, Mike’s move isn’t to sell into cash. It’s to convert silver into gold — staying in hard assets while repositioning ahead of silver’s relative decline.
Gold-to-silver ratio, 2000–2026
Ounces of silver required to purchase one ounce of gold — monthly
Source: Macrotrends.net (gold/silver spot price ratio, monthly). A rising ratio means silver is undervalued relative to gold.
- The Dow/Gold Ratio: When Do Stocks Become the Better Bet?
This ratio shows how many ounces of gold it takes to buy the Dow Jones Industrial Average. It currently sits around 12–12.5.
Historically, major cycle bottoms bring this ratio to 1:1. Mike thinks this cycle could go lower — potentially 0.5 — given the size of today's debt and asset bubbles dwarfs anything seen in 1929 or 1966.
His framework is straightforward: near 5, start rotating some gold into stocks. Near 3 or 2, rotate more. At those levels, each ounce of gold buys 25 times more stock than it does today.
Dow-to-gold ratio, 2000–2026
Ounces of gold required to buy the Dow Jones Industrial Average — monthly
Source: Macrotrends.net (DJIA / spot gold, monthly). A falling ratio means gold is outperforming the Dow.
- Gold vs. Currency Supply: The Big Picture Check
This metric compares gold's price against the total amount of currency in existence. It answers a simple question: is gold cheap or expensive relative to how much money has been printed?
What Should You Do With Your Gold and Silver Gains?
Selling precious metals isn't the end goal. It's the beginning of the next move.
The real objective is rotating out of gold and silver at the right time — and into assets that are undervalued by comparison. Here's how Mike sequences it.
Silver → Gold
When the gold/silver ratio compresses back toward historical norms, that's your cue to start trading silver for gold. Don't jump into cash, stocks, or real estate yet. Wait for confirmation signals across multiple indicators before making that next rotation.
Gold → Stocks
When the Dow/Gold ratio drops into the 5, 3, or even 2 range, stocks become compelling. At those levels, each ounce of gold buys dramatically more equity than it does today. That's when rotating into equities starts to make sense.
Gold → Cash Flow Real Estate
Real estate moves slowly — it won't bottom overnight. That's actually an advantage. You have time to wait for a clear confirmation signal, even if it takes a year or two. The key word is cash flow. Mike isn't talking about speculative appreciation plays. He means properties that generate income from day one.
Gold → Private Businesses
This one gets overlooked. Becoming a majority stakeholder in a small, profitable private business gives you something a stock portfolio can't: control. You own the cash flow directly. You're embedded in the real economy, not just exposed to it through a ticker symbol.
The Rule Across All of It
Don't convert to fiat any sooner than you have to. If the dollar is still under pressure when you're ready to sell, cash is the weakest place to park your gains — even temporarily.
The goal is to move from one real asset to the next. Use fiat as a bridge, not a destination.
What's the Best Way to Handle Capital Gains Taxes on Gold and Silver?
When gold and silver have a big run, the tax bill follows. For most investors, there's no way around it — only through it.
Mike's answer is blunt: you have two real options.
Pay the taxes. Gains are gains. A large profit after taxes is still a large profit. Don't let the tax tail wag the investment dog.
Move to Puerto Rico. Under Act 60, Puerto Rico residents can qualify for a 0% capital gains rate on qualifying assets. Mike made this move himself — but he's clear that it only makes sense if the savings run into the millions. The regulatory complexity and lifestyle adjustment aren't trivial.
There's no clever middle path here. A Gold IRA can defer the bill, but it doesn't eliminate it. Eventually, you pay.
The smart move is to plan for taxes now, before the cycle peaks — not scramble for solutions when the gains are already on the table.
When to Sell Gold and Silver
The precious metals cycle isn't over. But someday you'll want to convert those gains into something — and that day comes faster than most people expect.
Here's what that plan looks like:
- Don't try to nail the top. Nobody can. Sell in 20% tranches as your indicators align, and let the process do the work.
- Watch the ratios. The gold/silver ratio, the Dow/gold ratio, and gold against the currency supply are your primary signals. Learn them before you need them.
- Rotate into undervalued assets — not fiat. The sequence matters: silver into gold, then gold into stocks or real estate when the ratios confirm it. Cash is a bridge, not a destination.
- Plan for taxes now. The time to think about capital gains is before the cycle peaks — not after. Know your options. Make decisions deliberately.
- Stay process-driven. The investors who get hurt at peaks aren't the unlucky ones. They're the ones making emotional decisions based on headlines and hype.
The cycle will peak. The question is whether you'll be ready.
Investing in Physical Metals Made Easy
People Also Ask
When should you sell gold and silver?
There's no single perfect moment to sell — and anyone who claims otherwise is guessing. The smarter approach is to watch key ratio indicators like the gold/silver ratio and Dow/gold ratio, then sell in stages as those signals align.
What is the gold/silver ratio and why does it matter for selling?
The gold/silver ratio measures how many ounces of silver it takes to buy one ounce of gold. When the ratio compresses toward historically low levels — around 20 to 25 — it signals that silver's outperformance phase may be peaking and it's time to start repositioning.
Should I sell my silver for cash or convert it to gold?
When the gold/silver ratio starts compressing, the move isn't to sell into cash — it's to convert silver into gold first. Holding fiat during a period of dollar weakness is one of the weakest positions you can be in, so staying in hard assets as long as possible is key.
What is the Dow/gold ratio and when should I rotate into stocks?
The Dow/gold ratio measures how many ounces of gold it takes to buy the Dow Jones Industrial Average. When that ratio drops toward 5, 3, or even 2, stocks become deeply undervalued relative to gold — and that's when rotating out of precious metals into equities starts to make sense.
What should I buy after selling gold and silver?
The goal isn't to sell into cash — it's to rotate into the next undervalued asset class. Depending on where the ratios stand, that could mean stocks, cash-flowing real estate, or even a stake in a private business. Use fiat as a bridge to your next position, not a resting place.
This article is for informational purposes only and does not constitute financial or investment advice. Past performance is not indicative of future results. Consult a qualified financial advisor before making investment decisions.
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