UNLOCKED: What "Do Not Sell Your Physical" Means

Hey, guys, I want to clarify something, and I want to clarify it because people are making generational money here, and I want to make sure messages aren’t misconstrued, and I want to do this the right way, okay? So I’m going to lay this out clearly and one final time because too many people are reacting to soundbites instead of the full message. Unfortunately, most of those are free subscribers and they haven’t heard the whole spiel because of the paywall. So I’m going to just put this on the other side of the paywall so everyone understands or at least knows that they don’t have the whole picture.So when I say, do not sell your physical, I do not mean do not hedge risk. These are two different things. Not selling physical does not mean ignoring risk. It means not parting with the physical asset itself. If you own physical metal and you have the financial capacity and the discipline to manage risk, you hedge it.Hedging is risk mitigation. Hedging is not selling. Hedging is how professionals operate. Now, there are several ways to do this. If you are a long physical, you can hedge by selling call spreads. You can hedge by selling calls if you understand and can tolerate the risk. You can hedge by reducing exposure elsewhere in your portfolio.This should be the most common way done by people who don’t understand options. If you own $1 million in physical metal and $1 million in mining equities and you want to reduce overall risk, you do not start by selling the physical. You sell part of the mining exposure. You might sell half the miners.If you still want to reduce risk further, you sell more miners. You adjust the brokerage positions first. This is risk management. This is hedging. This is not selling your metal. You treat it like a portfolio, not like separate commodities when it comes to hedging risk. At the institutional level, this is exactly how it’s done.Large players own physical and hedge it with derivatives. They own the asset and manage price risks separately. Retail investors cannot replicate the structure perfectly, but the principle still applies. If you are sophisticated with options, you can sell call spreads. And in some cases, pair them with protective puts. More advanced structures exist for those who understand them.The point is not the specific instrument. The point is the framework. You mitigate risk without surrendering the asset. If you do not want to use options, that is entirely reasonable. Many people do not. In that case, you hedge by adjusting other positions. Mining equities are a brokerage trade. Futures are a brokerage trade. Options are a brokerage trade.Physical metal is different. If you want to reduce total exposure by 50% and you do not want to sell physical, then you sell the brokerage positions. You can always reenter those later at better prices. You cannot efficiently replace physical once it is gone. That is why I repeat this message.Do not sell your physical does not mean do not hedge your physical. Do not sell your physical means do not part with the asset itself. Hedge risk. manage exposure, total exposure, use the tools available to you. It will also be clear about what I’m doing personally because transparency matters. I have hedged my physical using call spreads.I have reduced and re-entered mining exposure tactically. I have reduced the physical and re-entered mining exposure tactically. As prices move lower, I am prepared and have powder to add to minors again. This is not a short-term trade. This is not a one-week or one-month decision.This is a multi-year position decision, just as my position in physical gold has been. The market has been demonstrated that demand for these metals is real. Physical metal is increasingly being treated as strategic collateral that requires supply. Supply requires investment. Investment flows into miners.At the same time, recent events have exposed how fragile and underinvested the supply chain is. Capital will be required to rebuild it. I saw this in the 80s with energy. Energy spiked. And then when energy came off, the energy producers did well because eventually they started producing more and they had these great profit margin.The capital will flow into companies with reserves and projects, particularly those that are cash constrained and politically relevant. Thinking about Trump here. This is why selective mining exposure matters. Not all miners will succeed. Some will stagnate. Some will fail. A small number will outperform dramatically. This is the nature of this space.You build a basket of small teenies. You size it appropriately. You accept the full distribution of outcomes. But throughout all this, the physical position remains the foundation. I say it again because this is a public service message and repetition is intentional. Do not sell your physical does not mean do not hedge. Hedge your physical.Hedge your risk with other assets. Do not confuse risk management with liquidation. And one final reminder. This is not over. You are not out of the game. Do not celebrate prematurely. You do not celebrate until risk is managed and capital is protected. You do not celebrate until this game is finished. I’m losing money today. I’m losing 5% after making 300%. Understand, we have to give back some money to get out of risk. You have to feed the gods, even when you’re being responsible. Nobody’s going to retain 100% of what they do. I want everyone to do very, very well.And I will never make this comment again because a lot of people don’t understand it. And that’s okay. But now that I’ve corrected it, hopefully people will be able to handle their own positions, their own ways. Talk to an investment professional on what I’m talking about and how to do it.But if you’re long a million dollars in miners and you’re long a million dollars in metal and you have to sell one and not the other, I’m telling you, sell the miners right now. Because the metal is going to be unobtainable at some point. And they may even come for it. Who knows?But the point is, you can’t sell physical assets. Quickly. And you can’t sell physical. Who sells physical $10 on their spot? That’s crazy. Sell the miners at spot and then buy them back later. I’m Vince. God bless you all. Really. I mean, let’s hope we come out the other side of this with the money that we’ve made.As stated originally: do not sell your physical if you can afford not to. Hedge risk!!! Price risk is NOT physical risk. That is the whole point of metals counterparty security This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit vblgoldfix.substack.com/subscribe