Are you doing good with Silver & Gold????

 Ok friends. I've been getting a lot of questions lately about Silver and Gold. Price is doing some crazy things. "Do you THINK SO"? Actually, the price of Silver and Gold is actually correcting TOWARDS where it SHOULD BE in the world's economy. The price of both have been suppressed for so long, that it needed a correction. And with technology, need for AI, industrial, etc. all beginning to boom again; especially in the United States, there's a much larger need for the metals. Especially Silver. So, does that mean I believe Silver and Gold will go higher? Definitely. But, I also believe Silver and Gold will go lower. No, I'm not trying to be a politician playing the middle ground. Silver and Gold's value will always fluctuate based on the economy generally. AND.... because Silver is an Industrial metal, it will fluctuate based on need. I do believe that Silver's not going to go back down to $16.00 an ounce like it was 10 years ago.

The biggest, and most exciting thing you should be noticing, is the GSR (Gold to Silver Ratio). Prior to the 1900's, the GSR was around 15-20. Meaning, it took approximately 20 ounces of Silver to equal 1 ounce of Gold. Well, after the major Gold Rush's of the 1800's; losing the Gold Standard in the 1900's; the Hunt's in the 1930's trying to buy up ALL the Silver; President Nixon disconnecting the US dollar from being backed by Gold in 1971; and then the US Mint introducing the American Gold Eagle and American Silver Eagle in 1986...... there's been a LOT of fluctuation in the GSR. But one thing was constant..... it was NEVER at the 20:1 ratio as it was before. The average in the last 100+ years has been in the 50:1 to 70:1 ratio. With plenty of times where the GSR was at 100:1; including just about a year ago when it was at 110:1. But today, (or in the last week or so), it's been hovering around 50:1 to 52:1. Pretty dramatic swing. Which means today, you could exchange/trade roughly 50 ounces of Silver for 1 ounce of gold. That's a lot better than having to give up twice as much; 100 ounces of Silver to get 1 ounce of Gold.

So why am I bring this up??? Because two of the biggest questions I've been asked recently are: 1) How much silver and gold should I have? and 2) How much Silver VS Gold should I have? And with the GSR floating around 51, this might not be a bad time to "Re-Balance" your Silver/Gold portfolio. Just like a year ago, it might have been a good time to trade 1 ounce of Gold for 110 ounces of Silver. Now; my followers know the answer to the first question. How much silver and gold should you own. I've posted many variations of that question and answer; which you can go back and read. BUT... for the new folks, I will give you a brief answer which should answer the question for you. How much you stack depends on the purpose of why you are stacking.

1) If you are stacking strictly to "Protect your wealth"; meaning, having Silver and Gold on hand to fight against massive inflation and preserve your wealth so that "X amount of money will be worth the same in the future as it is today", then I suggest approximately 10% of your net worth. EXAMPLE: You have $200,000 in equity in your house; $200,000 in IRA/Retirement accounts; and another $100,000 in misc. property, cars, savings, etc... then you would have a Net Worth of approximately $500,000. (THIS IS JUST AN EXAMPLE!!! You may have less or more). So, in this example, I suggest that you have "AT LEAST" $50,000 in silver and gold.

2) If you're stacking for a future major purchase, which cover's inflation, but the purchase is not mandatory and you can "PLAY THE silver/gold MARKET". Then you have to decide how much.  examples: You want to buy a new car, average price is $50,000. You DON'T NEED a new car, you want one. So you'll buy it when the "Price/Ratio" is right. You determine how much, in this case $50,000 WORTH of Silver and Gold, and you purchase a small amount each month (Dollar Cost Averaging) until the price is $50,000 worth. That would be 555 ounces of silver at today's price. It will depend on the AVERAGE over time that you bought. An example might be if you were dollar cost averaging over the last 5 years, you're AVERAGE would be about $30 an ounce for Silver. So that means, at today's $90 and ounce, the 555 ounces you need to buy that $50,000 car, only cost you $16,650.

3)   Economic Armageddon/SHTF scenario. In this case, it's pretty simple. You would want about a year's worth of your pay in Silver and Gold. Sounds similar to the previous where you're purchasing a product in the future, but this silver and gold is stuff you will NEVER, EVER Trade/Sell/liquidate. When you die, you pass it on to your children. Now, if you're retired and you DON'T have a Mortgage, car payments, low to no credit card debt, etc... FIRST OF ALL CONGRATS..... Debt free is the BEST INVESTMENT there is. In this case, you determine how much you need to live on for a year and double it. Remember.... if it's an Economic Armageddon/SHTF type scenario, the Silver/Gold will be worth a LOT MORE than it is now; because FIAT currency won't be worth crap. So, a good number might be around $50,000 worth. Maybe a little more. Again; a YEAR's Income or if retired and debt free, around $50,000

Now..... there's many of my followers who do ALL THREE of the above stacking scenarios. "GOOD JOB". We know that Silver and Gold ARE MONEY. They are the REAL MONEY. We DON'T BUY Silver and Gold. We are TRADING one FORM of CURRENCY for ANOTHER FORM of CURRENCY. We are TRADING Dollars for Silver/Gold. So we keep SOME of our silver/gold for #3 above; Economic Armageddon. We will ALWAYS have this much set aside. We have some we use to purchase an item we want at a DISCOUNT; as in #2 above. And, we have some set aside like in #1 above to protect our wealth for the future. So if inflation is out of hand, and our monthly income isn't quite making it for us, we can offset/supplement our income with some silver and gold. And again.... when prices are super high with inflation, silver and gold will go up and compensate.

Remember..... as I said in the beginning, the MAIN reason Silver and Gold are so high NOW..... isn't because of the economy. It's a PARTIAL RESET. The powers that be have held back Silver and Gold for almost 50 years. It has to do some correcting. And to be honest.... it's almost there. The average cost of an acre of land in the USA is between $4500 - $5000. That is my BAROMETER. In the early 1900's when the GSR was a little lower than it is now, 1 ounce of gold could buy an acre of land. (Average; NOT DownTown Manhattan or Los Angeles LOL. Well, gold is at $4600 an ounce now. It's about where it should be. 

So, finally... HOW MUCH Silver vs Gold should you own. Well, again this depends on your purpose. If it's for Economic Armageddon/SHTF, then I recommend about 90% silver and 10% gold. And try and make the silver and SMALL of pieces as possible. As much 90% old currency as you can Dimes, Quarters, Half Dollars, Dollars. If a loaf of bread is $20, it's hard to give 1 ounce of silver valued at $200 an ounce, and ASK FOR CHANGE. For #1 and #2 (And for those of us who stack for ALL THREE REASONS and possibly more reasons), I suggest a 50/50 split in value.

Example: If you had $200,000 WORTH of Silver and Gold today, you should have about half for each. About 1100 ounces of silver and about 21 ounces of gold. Now it doesn't have to be exact; or even super close...... e.g. 1000 silver and 23 ounces of silver; or 1500 ounces silver and 16 ounces of gold. But..... let's say you have a LOT of silver and almost NO GOLD..... NOW would be the PERFECT TIME to exchange some silver for gold. With a GSR of 51:1, you could easily trade 200-300 ounces of gold for about 4-6 ounces of gold. And who knows..... if the GSR goes back to 100:1, you can trade back 1 ounce of gold and get 100 ounces of silver for it. But again, it's all a matter of why you are stacking.

There's 2 reasons to have BOTH Silver & Gold. 

1) a 1000 ounces of Silver weighs 62.5 POUNDS. (That's 1000 ounces divided by 16 ounces in a pound). It's hard to store a lot of silver. Even worse if you have to transport it. That same amount in GOLD is only about 20 ounces. That's 1 1/4 pounds. That fits in a ziplock and can be put in your front pocket.

2) Silver and Gold don't always fluctuate equally at the same time. That's why a year ago, the Gold to Silver Ratio was 110:1 and today it is 51:1. You want to have the flexibility to exchange whichever metal is the best move at the time. Also, if you don't want to trade back for a lot of dollars; like you only want to trade back $1000 for the new I-Phone (or whatever the reason), it's easier to do with silver than trying to make change for a $5000 ounce of gold. (Don't Buy FRACTIONAL Gold. Meaning, 1/10, 1/4, 1/2 ounce of gold. You get ripped off on how much it costs you). Of course, if you're trading back at 50:1 GSR and you're trading 100 ounces of Silver for 2 ounces of Gold, and the dealer can/will give you 1/10th, 1/4th, 1/2 ounce pieces...... JUMP AT IT AND TAKE THEM!!!! Never buy them, but if you can trade for them, definitely get them.

Anyway.... I hope everyone is getting the gold and silver they want. Don't worry about the price being high. Don't try and time the market. It will go down and it will go up. That's why you DOLLAR COST AVERAGE. Buy some silver now at $90 and when it goes to $80 don't get discouraged, think of it as SILVER IS ON SALE and it's TIME TO BUY!!! And you'll get some more at 100, and 95, and 105, and 85, and 75, 120, and so on down the road.... DON'T WORRY ABOUT IT. I have some silver I bought at $11 an ounce. I bought some at $35 an ounce in 2012. (TRIPLE THE PRICE!!!). I also have some that's higher. But of my CURRENT STACKS (Different stacks for different purposes), one of my stacks average is $19.85 an ounce. One of my other stacks is about $34.50. 

Remember.... only about 11% of all Americans own ANY GOLD; and it's NOT A LOT. It's mostly in jewelry. They aren't stacking. And the total amount for this average amount (11%) of gold they own is about 3-4 ounce. Only about 10% own any silver. That's also just jewelry, silverware, the occasional old Silver Dollar an old relative gave them, etc.... Put it this way..... if you have 500 ounces of Silver..... you WILL BE IN THE TOP 1% of ALL Americans who have Silver. If you have about 5-7 ounces of gold; not counting jewelry, you're also in the top 1%. Take care

CYA

SE