What mixture of silver should you own?
I've mentioned this as part of my other posts concerning how much silver I think a person should own. But I've received quite a few recurring emails asking "What Mixture" of silver should you own. So briefly, here is the mixture chart that I recommend. I will give a brief "WHY" of each category; but realize, this is just MY OPINION. There is no right or wrong. Just some more "Logical" reasons than others. And remember, with only slightly higher than 1% of all Americans owning Physical silver and gold as Insurance/Protection/Hedge/etc, having ANY silver and gold puts you ahead of most people. This will help take care of you and your family should there be a scenario of hyper-inflation, total crash of the dollar, or an Economic Armageddon until a currency and economy is re-established.
I'm not going to get in-depth about the different scenarios of how long the silver will last you. You can look that up in my other posts. Just look through the numerous titles/subjects. For now, we'll assume that for the average person/family, that you took my advice and have approximately 500 ounces of silver saved up. For the more well off, those who have more assets they need to protect like property, real estate, and other high cost areas, double the quantity to 1000 ounces, and double the mixture I recommend.
500 Ounce Silver Mixture:
250 each 1oz Silver Rounds:
125 each 1oz Silver Minted Coins: Eagles, Maple Leafs, Philharmonic, Austr Dollar, Britannia, etc.
75 ounces of Silver in 5oz or 10oz bars:
50 ounces of Silver in 90% "Junk Coins" Pre-1965 Dimes, Quarters, Halves, Dollars. $75 face value
WHY???
Remember, of the 4 main categories I recommend/recognize buying silver for, 2 doesn't really matter about the mixture. (Paying debt/buying things at discount & Insurance/Supplementing your income). These are reasons, such as towards retirement, where the mixture isn't important. But for the other 2 reasons, (Economic recession/high inflation and using silver so you don't liquidate your savings and retirement plans & Economic Armageddon where fiat currency is worthless and your silver is going to be your money), the mixture is very important. So the mixture above, and the reasons following, are mainly for these later 2 reasons for accumulating silver. We'll assume, for an average number, that the price of Silver is $100 an ounce. (This is NOT exaggerated. If anything, probably VERY CONSERVATIVE). Mind you, for other than economic Armageddon where there is no more "Dollar", you'll be "Trading" back your silver for "Dollars" and using that to pay for things. Only under the "Prepper Armageddon" scenario will you actually be using silver AS MONEY.
250 each 1oz Silver Rounds: These will be your main source of purchasing power. It will be for your day to day expenses. Food, supplies, hygiene products, paying your utilities, etc. These individual 1oz silver rounds will be able to handle most any purchases you'll need.
125 each 1oz Silver Minted Coins: The only REAL REASON for these, is because of the situation I mentioned in the beginning, With just over 1% of the population actually having silver or gold for these scenarios, most people won't be accustomed to Silver and Gold. It's going to take them a little while to figure out what it's worth. SOME PEOPLE, will only feel comfortable with Silver that MINTED from a government. Therefor, you'll want this amount of Eagles, Maple Leafs, Philharmonic, Australian, or British; for those people who don't know or trust a traditional Silver Round. But soon enough, that won't be an issue. But it's better to have some just in case.
75 ounces of Silver in 5oz or 10oz bars: The main reason for this is to cover LARGE EXPENSE ITEMS. It's just like having paper money in 1's, 5's, 10's, 20's, 50's or 100's. If you need to pay $1000 to get your car repaired; or to pay property tax; to buy a generator; or any other high price item, you don't want to deplete all of your 1's. Same here. It's better to not use 10 single ounces for a large item. Use a couple 5 ounce or a single 10 ounce bar. This way, when you go to buy the day to day things, you aren't trying to "MAKE CHANGE".
50 ounces of Silver in 90% Junk Coins: This goes along with the same reason as the bars. BUT IN REVERSE!!! Let's say, based on our silver being $100 per ounce, that you want to buy $20 WORTH of something. It might be hard to "MAKE CHANGE". The merchant might say: "Give me the one ounce coin and TOO BAD". Well, based on the $100 silver price, a 1964 Silver Dime, would be worth around $7.00. Give someone 3 DIMES, and you've covered your $20 worth of purchasing. VS giving them a 1 ounce round/coin worth $100 and them saying they don't have change. This also leads into the scenario where dollars are totally useless, they basically don't exist, and you're using silver and gold as money and bartering with it. It's good to be able to have fractions. Basically, 14 US 1964 dimes, is equal in silver content, to a 1 ounce silver round, eagle, maple leaf, etc. It's nice having fractional pieces.
So, there you go. If you've saved up the 500 ounces for the average family to get you through the hard economic times such as hyper-inflation, crash of the dollar, economic armageddon, covering your expenses until things start to stabilize, then this is a good break down. If you have more assets, and are taking my 1000 ounce recommendation, then simply double it.
Something very important: There is NOTHING TO SAY that you can only collect/store silver and gold for 1 specific reason.You can accumulate it because you are saving for something in the future, and also to pay down a car loan early, and at the same time want to have a year or two of "Supplemental Income" available in case of hyper-inflation instead of using up your savings or tapping into your retirement fund. (LIKE SO MANY DID IN 2008). Maybe you think it's possible to have an Economic Armageddon and there won't be any "DOLLARS" worth anything and you need another source of WEALTH. You can mix and match the reasons for having silver. Nothing says you can't buy that new car trading in silver rounds. You don't have to have big bars. As long as you have silver for some or all of the reasons listed, you'll do fine. This breakdown provided, is simply there to help you be "More Prepared" in case you need it.
CYA: SE:
I'm not going to get in-depth about the different scenarios of how long the silver will last you. You can look that up in my other posts. Just look through the numerous titles/subjects. For now, we'll assume that for the average person/family, that you took my advice and have approximately 500 ounces of silver saved up. For the more well off, those who have more assets they need to protect like property, real estate, and other high cost areas, double the quantity to 1000 ounces, and double the mixture I recommend.
500 Ounce Silver Mixture:
250 each 1oz Silver Rounds:
125 each 1oz Silver Minted Coins: Eagles, Maple Leafs, Philharmonic, Austr Dollar, Britannia, etc.
75 ounces of Silver in 5oz or 10oz bars:
50 ounces of Silver in 90% "Junk Coins" Pre-1965 Dimes, Quarters, Halves, Dollars. $75 face value
WHY???
Remember, of the 4 main categories I recommend/recognize buying silver for, 2 doesn't really matter about the mixture. (Paying debt/buying things at discount & Insurance/Supplementing your income). These are reasons, such as towards retirement, where the mixture isn't important. But for the other 2 reasons, (Economic recession/high inflation and using silver so you don't liquidate your savings and retirement plans & Economic Armageddon where fiat currency is worthless and your silver is going to be your money), the mixture is very important. So the mixture above, and the reasons following, are mainly for these later 2 reasons for accumulating silver. We'll assume, for an average number, that the price of Silver is $100 an ounce. (This is NOT exaggerated. If anything, probably VERY CONSERVATIVE). Mind you, for other than economic Armageddon where there is no more "Dollar", you'll be "Trading" back your silver for "Dollars" and using that to pay for things. Only under the "Prepper Armageddon" scenario will you actually be using silver AS MONEY.
250 each 1oz Silver Rounds: These will be your main source of purchasing power. It will be for your day to day expenses. Food, supplies, hygiene products, paying your utilities, etc. These individual 1oz silver rounds will be able to handle most any purchases you'll need.
125 each 1oz Silver Minted Coins: The only REAL REASON for these, is because of the situation I mentioned in the beginning, With just over 1% of the population actually having silver or gold for these scenarios, most people won't be accustomed to Silver and Gold. It's going to take them a little while to figure out what it's worth. SOME PEOPLE, will only feel comfortable with Silver that MINTED from a government. Therefor, you'll want this amount of Eagles, Maple Leafs, Philharmonic, Australian, or British; for those people who don't know or trust a traditional Silver Round. But soon enough, that won't be an issue. But it's better to have some just in case.
75 ounces of Silver in 5oz or 10oz bars: The main reason for this is to cover LARGE EXPENSE ITEMS. It's just like having paper money in 1's, 5's, 10's, 20's, 50's or 100's. If you need to pay $1000 to get your car repaired; or to pay property tax; to buy a generator; or any other high price item, you don't want to deplete all of your 1's. Same here. It's better to not use 10 single ounces for a large item. Use a couple 5 ounce or a single 10 ounce bar. This way, when you go to buy the day to day things, you aren't trying to "MAKE CHANGE".
50 ounces of Silver in 90% Junk Coins: This goes along with the same reason as the bars. BUT IN REVERSE!!! Let's say, based on our silver being $100 per ounce, that you want to buy $20 WORTH of something. It might be hard to "MAKE CHANGE". The merchant might say: "Give me the one ounce coin and TOO BAD". Well, based on the $100 silver price, a 1964 Silver Dime, would be worth around $7.00. Give someone 3 DIMES, and you've covered your $20 worth of purchasing. VS giving them a 1 ounce round/coin worth $100 and them saying they don't have change. This also leads into the scenario where dollars are totally useless, they basically don't exist, and you're using silver and gold as money and bartering with it. It's good to be able to have fractions. Basically, 14 US 1964 dimes, is equal in silver content, to a 1 ounce silver round, eagle, maple leaf, etc. It's nice having fractional pieces.
So, there you go. If you've saved up the 500 ounces for the average family to get you through the hard economic times such as hyper-inflation, crash of the dollar, economic armageddon, covering your expenses until things start to stabilize, then this is a good break down. If you have more assets, and are taking my 1000 ounce recommendation, then simply double it.
Something very important: There is NOTHING TO SAY that you can only collect/store silver and gold for 1 specific reason.You can accumulate it because you are saving for something in the future, and also to pay down a car loan early, and at the same time want to have a year or two of "Supplemental Income" available in case of hyper-inflation instead of using up your savings or tapping into your retirement fund. (LIKE SO MANY DID IN 2008). Maybe you think it's possible to have an Economic Armageddon and there won't be any "DOLLARS" worth anything and you need another source of WEALTH. You can mix and match the reasons for having silver. Nothing says you can't buy that new car trading in silver rounds. You don't have to have big bars. As long as you have silver for some or all of the reasons listed, you'll do fine. This breakdown provided, is simply there to help you be "More Prepared" in case you need it.
CYA: SE:
Comments
Post a Comment