Cove Selvik was the best landing for small fishing vessels on the eastern side of the great peninsula Skagi. Ruins of fishing outfits on its northern headland Selnes are still prominent. The topographical name The German Burial Site suggests frequent visits by German merchants in the past, and at the turn of the 19th century, merchants of the village Saudarkrokur operated a trading post and fish processing there. They and their collegues in the North discussed the possibility of making Cove Selvik their main export centre for live stocks. A farm by the same name as the headland still stands there.
According to the so-called Sturlunga Saga, Kolbeinn the Young Arnorsson, set off with his fleet of 400 strong from Cove Selvik and headed for the Westfiords, where he expected to find his enemy, Thordur kakali, and beat him in a battle. Thordur, had the same idea, and their fleets met on the Hunafloi Gulf, where the only sea battle of the country’s history took place in 1244. Kolbeinn the Young returned as the victor.