Have you stacked enough silver and gold?
My brothers and sisters. It seems that no matter how many times I address this subject, the question gets asked again. And again..... And again...... And again.
How much silver and/or gold should I own?
Well, I have 2 answers.
1) Read my past blog posts. Look for the topic. I've mentioned it before.
2) I WILL ANSWER it again here and now.
But, before I explain that, I have to say, for those of you who haven't bought any silver in a while, or ever, you're being given a really good second chance here. In the last couple weeks, the price in silver has dropped about a dollar. Now, at these prices, that sounds like a lot. And in reality, it is. However, when you look at the LONG TERM of how many ounces you buy, and the DCA "Dollar Cost Average", that $1.00 an ounce difference won't mean much. What matters, is that you HAVE SILVER. The problem that is going to come, just like it did in 2011, is that YOU WON'T BE ABLE TO BUY IT!!!! The more the price goes up, the LESS people are going to part with it. I recommend a regiment of buying silver on a REGULAR BASIS. Figure out how much you want to spend per month, then divide it by 4 and buy that much EACH WEEK.
Example: If you decide to buy $300 per month, then buy $75 of silver EVERY WEEK. No matter what the price. I recommend buying ROUNDS. There's no reason to spend the extra money on American Eagles or Maple Leafs. If the SHTF, and Silver goes through the roof and you eventually need to sell it, you WON'T get more for the eagles or maple leafs. Those who say you WILL, and therefor it's better to buy the eagles and maple leafs, are basing their answer on selling back under NORMAL SITUATIONS. For that, I agree. But as you all know, unless you're buying silver specifically to save to buy something at a discount, or to pay down debt, then you shouldn't EVER be selling your silver and/or gold.
But, there is absolutely NOTHING WRONG with buying silver for MORE than one reason. Example: Maybe based on my numbers I'll get to below, you decide to stack 500 ounces for INSURANCE against inflation and such; but you decide to stack another 500 ounces that you'll use to buy something at a discount or to pay down a debt. That's cool. Even if you wanted to buy some simply for speculation and investment purposes. That's fine too. But make sure you have your INSURANCE STACK FIRST. Just like you should have about 4-6 months of pay saved up; and 6 months or more of food and water saved up; you need to have your INSURANCE SILVER saved FIRST. Then you can continue to stack for reducing debt, or to save and purchase an item at a discount, or for investment purposes. For what it's worth, depending on your way of thinking, INSURANCE because of hyper inflation, loss of job, etc. can also fall into the category where some believe in an Economic Armageddon. Or basically, a SHTF scenario.
So, how much silver and/or gold should you have? You will see all sorts of charts that show; if you have "X" amount of expenses per month, then you should have "Y" amount of silver to cash in each month. Honestly, that's a CROCK OF SHIT. Why? Because chances are, you're not going to be 100% bankrupt with no savings and evicted from your home all at once, and have to rely on your silver to pay 100% of your expenses. The purpose of your INSURANCE STACK, is to SUPPLEMENT your income. If the cost of food, utilities, gas, etc. go up dramatically, you're going to be tempted to STOP putting money into your savings, 401K, IRA, etc. Some will say 401K and IRA are bad investments. Just like anything else, if they go down, they will go back up. I recovered, plus GAINED, since the 2008 crash. And just like silver, if the price is in the toilet, you SHOULD BE BUYING. So, your INSURANCE SILVER STACK is to supplement your income so you can continue to put money in your 401k, IRA, savings, etc. The silver stack is also so you don't have to liquidate your savings or retirement funds. When they crash, the metals will equal the cost of living.
So, for the average person, I recommend 500 ounces. At today's prices, $17.50 (Which is average including premium for generic rounds), that would cost about $8,750. Of course, I don't believe or expect anyone to pay $8,750 all at once and buy that much. You could if you have the money. If not, that's about 40 ounces a month. 10 rounds per week. But, with the price so low, and if you had the money, then I would say that maybe you should buy 100 ounces per month. That's 2 1/2 times faster. You'll have your 500 rounds in 5 months.
So, what kind of silver should you buy? Well, for the PURE INSURANCE STACKER; I'd buy all of it in 1 ounce ROUNDS. Could be buffaloes or any of the replica coins. As long as it's .999 fine silver, 1 ounce, and from a reputable dealer in town, or a reputable online like APMEX, Bay Precious metals, PNG Liberty, US Gold Bureau, etc.
But what if you aren't just an INSURANCE stacker, but maybe you believe in part of the SHTF Economic Armageddon? Maybe you believe you'll need DIFFERENT types of silver. Maybe you think you'll need to actually BARTER with it instead of simply selling it back to a dealer. Then, you might want SOME more recognizable silver. If that's the case, then I suggest the following.
250 Ounces of ROUNDS - Like I mentioned in the previous paragraph
125 Ounces of MINTED Silver - American Silver Eagles, Canadian maple leaf, Austrian Philharmonic, British Britannia, Australian spider/kangaroo, etc. As long as they are 1 ounce .999 fine silver and minted by a COUNTRY. They will be more "Trust Worthy" if needed.
75 Ounces of BARS - I recommend 10 ounce bars. You can get a decent price on them and they're easier to store than individual rounds. 1 ounce bars are stupid. Might as well have ROUNDS. Ensure the bars are from a well known source. Canadian Royal Mint (Government) are the best. They are serial numbered. But Apmex is also a good source. As are many others. Just don't get some homemade poured bars.
50 Ounces in 90% American < or = 1964 dimes, quarters, halves, or dollars. 50 ounces is equal to $70 FACE VALUE. Example. 5 rolls of 1964 or earlier quarters and 4 rolls of 1964 or earlier dimes.
I said 500 ounces for the AVERAGE PERSON. If hyperinflation kicked in, and silver was worth say $75-$100 an ounce. You could sell back 5 ounces PER MONTH, which would supplement your income $375-$500 per month FOR 100 MONTHS. THAT'S 8 YEARS!!! Even if silver was only $50 an ounce, like it was in 2011, you could still supplement the same amount for over 4 years. That should be plenty of time for the economy to come back around, and for you to get your finances back in order with a new job, 2nd job, or whatever you have to do.
For the person with a much higher standard of living; or if they are wanting/needing to SHELTER and PROTECT more of their wealth, then I recommend 1000 ounces. Double everything I wrote. For what it's worth, if you stacked 1000 ounces, over the last 3 years since the price started going back down, that's only stacking 30 ounces a month, AND, with DOLLAR COST AVERAGING between a high of around $37 and the low of $14 (Spot price); your DCA BREAK EVEN POINT, would be around $20.50. This is very doable and pretty painless.
But honestly, if you're thinking you want 500 or even 1000 ounces, you don't have 3 years to buy it. While I am not a fortune teller, I honestly believe that silver and gold are pushing the bottom. The way the prices have been bouncing, and the stock market bouncing, it is very similar to 2007-2008. Will it crash? I don't know. But I do know that if I had ZERO silver now, and wanted the 500 - 1000 ounces, I'd probably step it up. I wouldn't buy it all at one time, but I'd probably buy 100 ounce a month if I wanted 500 and 200 ounces a month if I wanted 1000.
So; WHAT ABOUT GOLD??????? Yes, I said I would mention how much gold.
Personally, I think Gold is really simple. 1st: Buy your silver FIRST. Silver is WAY UNDERVALUED. It's at 73:1 ratio. Get the silver while you can. When you're ready for gold, make it simple 1%. So, if you have 500 ounces of silver, have 5 ounces of gold. If you have 1000 ounces of silver, have 10 ounces of gold. At today's prices, 500 ounces of silver is $8750 and 5 ounces of gold would be $5750. A good RULE would be..... After you've bought 100 ounces of silver, THEN buy 1 ounce of gold. After the 200 ounce silver mark, buy a 2nd ounce of gold. etc.
Because of premiums, I recommend buying FULL 1 OUNCE GOLD!!! #1 American Eagles. #2 Canadian Maple Leaf. #3 South African Krugerrand. #4 Austrian Phiharmonic. The ONLY WAY you should buy 1/2 or 1/4 or 1/10th ounce gold, is if you get one HELL OF A DEAL. Meaning, it costs EXACTLY the same as the full ounce. Example. If 1 ounce Gold Eagle costs $1150, then buy a 1/2 ounce if it's around $575-$585. If it's $600+, don't do it. You won't be using gold for SMALL PURCHASES or to supplement your income. For insurance, you'll sell gold to cover your PROPERTY TAX, emergency $1500 transmission fix, or some other large expense at one time item.
But what if you can't afford $1100-$1200 for an ounce of gold? Well, save the money until you can. Obviously, if you're trying to SPEED UP based on my suggestion, and trying to get 100 ounces of silver per month, it might be hard for you to also spend another $1100-$1200 for an ounce of gold. Just do the best you can. If you have to, simply buy your silver 100% first. When you're done in 5 months, you'll be use to putting money aside for silver, start using it for gold. If you see the price of silver and gold start to go up big time, DON'T GET SUCKED INTO BUYING LARGER AMOUNTS. A month ago, silver was in the $14's. A couple weeks ago, it was in the $16's. This week it's at the BOTTOM of the $15's and even cracked $14 for a few moments. If you panicked when it was going to $16, and bought 200-300 ounces of silver, you would have screwed yourself out of $300-$600 dollars. Not to say that it couldn't have kept going up. Simply saying don't try and time it. Dollar Cost Averaging ALWAYS WORKS.
BEST OF LUCK:
CYA: SE:
How much silver and/or gold should I own?
Well, I have 2 answers.
1) Read my past blog posts. Look for the topic. I've mentioned it before.
2) I WILL ANSWER it again here and now.
But, before I explain that, I have to say, for those of you who haven't bought any silver in a while, or ever, you're being given a really good second chance here. In the last couple weeks, the price in silver has dropped about a dollar. Now, at these prices, that sounds like a lot. And in reality, it is. However, when you look at the LONG TERM of how many ounces you buy, and the DCA "Dollar Cost Average", that $1.00 an ounce difference won't mean much. What matters, is that you HAVE SILVER. The problem that is going to come, just like it did in 2011, is that YOU WON'T BE ABLE TO BUY IT!!!! The more the price goes up, the LESS people are going to part with it. I recommend a regiment of buying silver on a REGULAR BASIS. Figure out how much you want to spend per month, then divide it by 4 and buy that much EACH WEEK.
Example: If you decide to buy $300 per month, then buy $75 of silver EVERY WEEK. No matter what the price. I recommend buying ROUNDS. There's no reason to spend the extra money on American Eagles or Maple Leafs. If the SHTF, and Silver goes through the roof and you eventually need to sell it, you WON'T get more for the eagles or maple leafs. Those who say you WILL, and therefor it's better to buy the eagles and maple leafs, are basing their answer on selling back under NORMAL SITUATIONS. For that, I agree. But as you all know, unless you're buying silver specifically to save to buy something at a discount, or to pay down debt, then you shouldn't EVER be selling your silver and/or gold.
But, there is absolutely NOTHING WRONG with buying silver for MORE than one reason. Example: Maybe based on my numbers I'll get to below, you decide to stack 500 ounces for INSURANCE against inflation and such; but you decide to stack another 500 ounces that you'll use to buy something at a discount or to pay down a debt. That's cool. Even if you wanted to buy some simply for speculation and investment purposes. That's fine too. But make sure you have your INSURANCE STACK FIRST. Just like you should have about 4-6 months of pay saved up; and 6 months or more of food and water saved up; you need to have your INSURANCE SILVER saved FIRST. Then you can continue to stack for reducing debt, or to save and purchase an item at a discount, or for investment purposes. For what it's worth, depending on your way of thinking, INSURANCE because of hyper inflation, loss of job, etc. can also fall into the category where some believe in an Economic Armageddon. Or basically, a SHTF scenario.
So, how much silver and/or gold should you have? You will see all sorts of charts that show; if you have "X" amount of expenses per month, then you should have "Y" amount of silver to cash in each month. Honestly, that's a CROCK OF SHIT. Why? Because chances are, you're not going to be 100% bankrupt with no savings and evicted from your home all at once, and have to rely on your silver to pay 100% of your expenses. The purpose of your INSURANCE STACK, is to SUPPLEMENT your income. If the cost of food, utilities, gas, etc. go up dramatically, you're going to be tempted to STOP putting money into your savings, 401K, IRA, etc. Some will say 401K and IRA are bad investments. Just like anything else, if they go down, they will go back up. I recovered, plus GAINED, since the 2008 crash. And just like silver, if the price is in the toilet, you SHOULD BE BUYING. So, your INSURANCE SILVER STACK is to supplement your income so you can continue to put money in your 401k, IRA, savings, etc. The silver stack is also so you don't have to liquidate your savings or retirement funds. When they crash, the metals will equal the cost of living.
So, for the average person, I recommend 500 ounces. At today's prices, $17.50 (Which is average including premium for generic rounds), that would cost about $8,750. Of course, I don't believe or expect anyone to pay $8,750 all at once and buy that much. You could if you have the money. If not, that's about 40 ounces a month. 10 rounds per week. But, with the price so low, and if you had the money, then I would say that maybe you should buy 100 ounces per month. That's 2 1/2 times faster. You'll have your 500 rounds in 5 months.
So, what kind of silver should you buy? Well, for the PURE INSURANCE STACKER; I'd buy all of it in 1 ounce ROUNDS. Could be buffaloes or any of the replica coins. As long as it's .999 fine silver, 1 ounce, and from a reputable dealer in town, or a reputable online like APMEX, Bay Precious metals, PNG Liberty, US Gold Bureau, etc.
But what if you aren't just an INSURANCE stacker, but maybe you believe in part of the SHTF Economic Armageddon? Maybe you believe you'll need DIFFERENT types of silver. Maybe you think you'll need to actually BARTER with it instead of simply selling it back to a dealer. Then, you might want SOME more recognizable silver. If that's the case, then I suggest the following.
250 Ounces of ROUNDS - Like I mentioned in the previous paragraph
125 Ounces of MINTED Silver - American Silver Eagles, Canadian maple leaf, Austrian Philharmonic, British Britannia, Australian spider/kangaroo, etc. As long as they are 1 ounce .999 fine silver and minted by a COUNTRY. They will be more "Trust Worthy" if needed.
75 Ounces of BARS - I recommend 10 ounce bars. You can get a decent price on them and they're easier to store than individual rounds. 1 ounce bars are stupid. Might as well have ROUNDS. Ensure the bars are from a well known source. Canadian Royal Mint (Government) are the best. They are serial numbered. But Apmex is also a good source. As are many others. Just don't get some homemade poured bars.
50 Ounces in 90% American < or = 1964 dimes, quarters, halves, or dollars. 50 ounces is equal to $70 FACE VALUE. Example. 5 rolls of 1964 or earlier quarters and 4 rolls of 1964 or earlier dimes.
I said 500 ounces for the AVERAGE PERSON. If hyperinflation kicked in, and silver was worth say $75-$100 an ounce. You could sell back 5 ounces PER MONTH, which would supplement your income $375-$500 per month FOR 100 MONTHS. THAT'S 8 YEARS!!! Even if silver was only $50 an ounce, like it was in 2011, you could still supplement the same amount for over 4 years. That should be plenty of time for the economy to come back around, and for you to get your finances back in order with a new job, 2nd job, or whatever you have to do.
For the person with a much higher standard of living; or if they are wanting/needing to SHELTER and PROTECT more of their wealth, then I recommend 1000 ounces. Double everything I wrote. For what it's worth, if you stacked 1000 ounces, over the last 3 years since the price started going back down, that's only stacking 30 ounces a month, AND, with DOLLAR COST AVERAGING between a high of around $37 and the low of $14 (Spot price); your DCA BREAK EVEN POINT, would be around $20.50. This is very doable and pretty painless.
But honestly, if you're thinking you want 500 or even 1000 ounces, you don't have 3 years to buy it. While I am not a fortune teller, I honestly believe that silver and gold are pushing the bottom. The way the prices have been bouncing, and the stock market bouncing, it is very similar to 2007-2008. Will it crash? I don't know. But I do know that if I had ZERO silver now, and wanted the 500 - 1000 ounces, I'd probably step it up. I wouldn't buy it all at one time, but I'd probably buy 100 ounce a month if I wanted 500 and 200 ounces a month if I wanted 1000.
So; WHAT ABOUT GOLD??????? Yes, I said I would mention how much gold.
Personally, I think Gold is really simple. 1st: Buy your silver FIRST. Silver is WAY UNDERVALUED. It's at 73:1 ratio. Get the silver while you can. When you're ready for gold, make it simple 1%. So, if you have 500 ounces of silver, have 5 ounces of gold. If you have 1000 ounces of silver, have 10 ounces of gold. At today's prices, 500 ounces of silver is $8750 and 5 ounces of gold would be $5750. A good RULE would be..... After you've bought 100 ounces of silver, THEN buy 1 ounce of gold. After the 200 ounce silver mark, buy a 2nd ounce of gold. etc.
Because of premiums, I recommend buying FULL 1 OUNCE GOLD!!! #1 American Eagles. #2 Canadian Maple Leaf. #3 South African Krugerrand. #4 Austrian Phiharmonic. The ONLY WAY you should buy 1/2 or 1/4 or 1/10th ounce gold, is if you get one HELL OF A DEAL. Meaning, it costs EXACTLY the same as the full ounce. Example. If 1 ounce Gold Eagle costs $1150, then buy a 1/2 ounce if it's around $575-$585. If it's $600+, don't do it. You won't be using gold for SMALL PURCHASES or to supplement your income. For insurance, you'll sell gold to cover your PROPERTY TAX, emergency $1500 transmission fix, or some other large expense at one time item.
But what if you can't afford $1100-$1200 for an ounce of gold? Well, save the money until you can. Obviously, if you're trying to SPEED UP based on my suggestion, and trying to get 100 ounces of silver per month, it might be hard for you to also spend another $1100-$1200 for an ounce of gold. Just do the best you can. If you have to, simply buy your silver 100% first. When you're done in 5 months, you'll be use to putting money aside for silver, start using it for gold. If you see the price of silver and gold start to go up big time, DON'T GET SUCKED INTO BUYING LARGER AMOUNTS. A month ago, silver was in the $14's. A couple weeks ago, it was in the $16's. This week it's at the BOTTOM of the $15's and even cracked $14 for a few moments. If you panicked when it was going to $16, and bought 200-300 ounces of silver, you would have screwed yourself out of $300-$600 dollars. Not to say that it couldn't have kept going up. Simply saying don't try and time it. Dollar Cost Averaging ALWAYS WORKS.
BEST OF LUCK:
CYA: SE:
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