Do you have your silver?

 I hope you've enjoyed some of the articles and videos I've linked to. I like sifting through all the various points for silver and gold, and providing you with the important information. You could spend the entire day trying to go through all of the articles. And there's always different opinions on each topic. I'm glad I can make your information collection a bit easier. Thanks so much to all my followers.

So, for today, I have some simple questions for you.

1. With the price of silver and gold going higher, are you "STILL STACKING"? It's common for many people to stop trading their dollars for silver and gold when the price starts going up. This is a really bad strategy. You can't time the price of silver and gold. Just like you can't time the stock market. If you buy it today at around $30 (With premium added to spot) for silver; won't you be glad you kept buying when the price goes to $35, $40, $50, or $100? There's only 3 times NOT to trade dollars for silver or gold. 1) If you simply can't afford it. 2) If you've reached the total amount of silver/gold that you want in your portfolio. 3) If you have some secret knowledge that the price of silver and/or gold is going to crash dramatically in the very near future. Well; #3 goes back to timing. I don't believe that anyone knows when the price is going to go up or down. That's why we do "Dollar Cost Averaging". I have some silver on hand that I traded for years ago at $35+ dollars an ounce. BUT.... I also have some silver on hand that I traded dollars for at around $10 an ounce. My average trade cost for silver is around $19 an ounce. But as I've said numerous times, don't think of your silver and/or gold as how much it's worth in DOLLARS. (Or your currency). Look at it for what it is. REAL MONEY!!!! And as such, what is it's purchasing power?

2. So that leads me to my 2nd question. Do you remember the main 3 reason why we transfer dollars to Silver? A) Preservation of wealth. Remember; an ounce of silver or gold today, can pretty much buy what an ounce of silver or gold could buy 50, 100, 1000 years ago. Do you think $100 can buy today what it could buy 10, 20, 50 years ago? I think not. In 1966; a Ford Mustang cost approximately $2700. Can you buy a new car today for $2700? How about this. If in 1964 you saved up your $2700 for that new car, and you saved it ALL in 1964 and older quarters, half dollars, silver dollars, dimes. you'd still have $2700. But what if for whatever reason, you decided to hold off on buying that car. You took that $2700 in 1964 and older quarters, dimes, half dollars, and dollars and put it in a metal box under your bed (or wherever). Anyway; a few years go by. Lets say 65 years. It's now the year 2020. You still have your $2700 in 1964 or older quarters, dimes, half dollars, and dollars. (Mind you, the value of that silver was those coins). But today, because of the price of silver, that $2700 in coins equates to 1930 OUNCES of silver. At today's $28 per ounce, you have no the equivalence $54,054. Do you think you could buy a new car today for $54,000? This preservation of wealth is also what you can use for the future for your retirement. What good is saving $100 a month, if every year that goes by, that $100 becomes only worth $90; then $80, then $70, etc... By the time you're ready to retire, and you have say $100,000 saved; the purchasing power in the future will make that $100,000 only worth what about $25,000 can buy today. In other words, whatever dollar amount you think you need to retire, if you're looking at 20+ years into the future, you're going to need to multiply that number by 4. If you think $250,000 is a good nest egg when you retire, you better make it $1,000.000

B) Besides preservation of wealth, we also trade for silver/gold to pay down debt or purchase items at a discount. E.g if you have a 30 year mortgage or 7 year car loan, if the interest rate if high, the best choice is to pay down the debt faster to get rid of the interest rate. But, if the interest rate is pretty low, it's NOT a good idea to pay down that loan faster. You'll actually lose out on borrowing at a low interest rate and the possibility of some tax rightoffs. However, if you were to take the extra money you WERE going to use to pay down the loan, and traded it in for silver, you could then sit on it. Then, let's say the equivalence dollar amount you had silver in was around $15 an ounce on average, and now it's worth $30 an ounce, then 1000 ounces of silver would have cost you trading $15,000 but is now worth $30,000. You can make a much larger dent in your reducing of a loan. I also knew I wanted to buy a new car for my wife some time in the near future. I didn't pick a date, just knew some time. I had been trading dollars for Silver from around 2005 until 2010/2011. Well, that's also the time the economy and stock market took a good dive. At first, even silver and gold were real low. I had a lot on hand, averaging around $10 an ounce. In 2010/2011 when the price really started to take off, I traded back silver at $25. So, I was able to buy my wife a new car for $25,000; but it only cost me $10,000 in silver. 

C) Of course, the 3rd reason we trade some of our dollars for silver/gold is for a SHTF scenario. You should always have SOME silver/gold on hand for this possibility. That means, you'll NEVER SELL ALL of your silver/gold. I could say "IF" the time ever comes; but I'm pretty confident saying "WHEN" the time comes that the entire economy bites the dust; there's going to be 2 outcomes. The majority of people are going to be reliant on the government to create and completely socialist and communist society where everything is controlled by the government. They will regulate food, housing, etc. Everyone will be part of a commune where everything is shared. May sound very Kum Ba Yay, but it's not going to be pretty. Of course, you'll be regulated on the necessities of life. But YOU CAN still control some of the extras/luxuries of life. People will still own a LOT of things. Just that DOLLARS won't be worth anything. However, silver, gold, medical supplies, guns, ammo, SKILLS, etc. will still be in existence. I'm not talking only an Armageddon situation; it could simply be a complete crash of the dollar. Use Venezuela as an example. A big mac meal is STILL about $8. HOWEVER, the average person living in Venezuela, is only making around $10-$50 a MONTH. Yes, a MONTH. So, for them, that $8 big mac meal, is equal to you paying thousands of dollars for the meal. BUT..... there are plenty of stories of people in Venezuela who have some silver and gold. Remember, value is what a person is willing to pay for it. You can purchase (under the table with silver/gold) items at an equal amount if the spot price of silver/gold was 3x, 5x, 10x, or even 100x what we see the spot price. That's because their local currency is total trash, and others want the silver/gold which is REAL MONEY. It's been real for thousands of years. 

3. So, I have a 3rd and final question for you. Do you have enough silver/gold. Mainly silver. Well, based on everything we've discussed here, what would be considered a good number of ounces. Well, that depends on how much debt you have. Assuming you trade dollars for silver on a monthly schedule, using dollar cost averaging, and you do this for at least 20 years, then averaging 4 ounces a month (Roughly about $100 - part of your RETIREMENT PLAN), in 20 years, you would have 1000 ounces of silver. And more importantly, the purchasing power would remain the same. But this 1000 ounces would also be available should a SHTF scenario happen. Of course then, like in Venezuela, the value of that silver/gold would be 10, 20, 50, 100X OR MORE than spot. It would be equal to having possibly 100,000 ounces here with our existing economy. But assuming no SHTF scenario, but considering the purchasing power holding steady, and to account for inflation, we average that silver to sell back at around $50 an ounce. That means, you can REVERSE the process, and instead of Accumulating 4 ounces a month, you could be trading back 4 ounces a month. Using today's dollars and the $50 an ounce average to cover inflation (Yes, the buying power works out the same), you could be supplementing your monthly income by around $200 a month. That might not sound like much, but you have to look at it cumulatively. That $2400 a year could pay certain bills. You could use the entire $50,000 +/- amount to pay off that mortgage when you retire. If you're younger as you read this and you are in your 30's or 20's, you could easily have 2,000 - 3,000 ounces of silver. 

Of course, I am talking for a minimum amount to handle SHTF and to supplement your retirement. If you don't need to supplement your retirement, because you are financially well off, that's great. But you should still have at least 500 ounces of silver and some gold. You could be a MILLIONAIRE. But if something like Venezuela happens, it will cost you most of that to survive. Although, chances are, the government has confiscated most savings account, 401k, IRA, etc. It's the only way they can ensure control. If worse comes to worse, and you have at least 500 ounces of silver for the SHTF scenario, and when you're 70-80 years old and the SHTF scenario never happened, then use that money for some last amount of fun. A SUPER NICE Home Theater system if you're into it. Maybe you split it among grand children. Maybe you pay for your kids and grandkids to all join you for a family vacation. It's not like you're going to lose your silver/gold.

So, there you go. Just reinforcing the knowledge that you already have about silver and gold. If you haven't bought any, because the price is going up, you need to be buying. Unless you think you have enough. Our country's economy has been coming back strong. That's why the price of silver/gold the last few years has been so low. Because the dollar has been strong. Well, between coronavirus and existing debt, the government is falling deeper in that debt. The dollar is losing and therefor silver and gold gain. We adding trillions to the debt because of the Wuhan virus. That debt isn't going to disappear any time soon. Silver and gold prices are definitely going to be something to watch.

CYA:
SE
 

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