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 Replies: 68 / Views: 6,261 |
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Valued Member
United States
239 Posts |
So I am young, only 24. I had accumulated a few hundred dollars in silver but then sold it all because I fell short of $ back around a year ago. Now I have almost 30oz in silver and a few fractional gold pieces. My financial situation is better than where I was, but still isn't perfect. Basically I am at the point where I have more now in PMs than I do in fiat. I'm not a survivalist or preper or anything like that, I simply like coins, esp silver & gold and I like preserving some type of value. I am still living with my parents, rent free  but I pay for everything else (besides food, utilities, etc..) My credit isn't so well but I am happy to say I am roughly debt free at this point (just paid off major bills) Should I put a hault on stacking? Continue to stack as long as I can afford it? (been stackong on avg 2oz a week lately) The market being where its at isn't helping much. And finally, your situation. Do you currently have more in PM than you do in your savings acct? I realize my situation is different that a lot of you, but still curious. |
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Pillar of the Community
United Kingdom
548 Posts |
I've got about 30% of my assets in precious metals which is way too high. However, if you're still living with your parents (same as me) then you don't need to be too concerned about long term investment, just buy whatever you like.
However, going forward you ought to limit your exposure to the volatile precious metals market. Don't tie up too much of your cash in gold and silver.
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Valued Member
United States
456 Posts |
For me personally, I hold metals as a fraction of my overall investments. I don't consider my savings account as a part of that. I keep enough in savings to cover expenses in case things turn south for an extended period of time -- an emergency fund. My savings remains essentially constant and I'm consistently adding to my investments. Therefore, the ratio between the two is always changing. For me, I don't think it in a metals to cash ratio. In my opinion, it would be best to make sure you have the means to protect yourself in case you have unexpected expenses, or loss of income for an extended period of time.
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Bedrock of the Community
13014 Posts |
The simple answer to your question is yes it is bad. On the bright side though it doesn't sound like youve poured a ton of money into coins neglectibng your savings account.
Personally I would take a month or two off and put everything into savings to even it out more then when I resumed buying coins I would split up your funds. For example if youre getting two a week cut it back to one and put the other half in savings. Or instead of 8 coins a month limit it to 3 or 4 and put the rest in savings.
You are young which is good, but a lot of young people make the mistake of neglecting saving and planning for the future. This is the time where the more you can save the bigger pay off you will have later in life as it keeps accumulating. Your friends may make fun of you for being the saving conscious one of the group but in 4 or 5 years when theyre living pay check to pay check and youre comfortable youll have the last laugh.
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Pillar of the Community
United States
3789 Posts |
Yes, I agree with BB.
Hold off on any more purchases of bullion. Work on making your credit score higher, and save more money.
In fact, you should stop completely buying PMs and focus on putting money into the equity market and savings. PMs should be viewed as at BEST diversifying and thats it, and for PMs even that is a stretch. Do not put money into assets that either are losing value or not showing you a profit.
Yes you are young but at already your mid 20s you are fighting against the clock. This is how you should approach things in this manner
1- work on getting better credit
2- put money into savings, open up a IRA NOW!
3- start to put money into the stock market
4- stop buying PMs for the time being. Perhaps once you have grown your savings then add a little more. However, this is not the time period to be putting "steady" money into PMs.
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Pillar of the Community
United States
1200 Posts |
I'm no certified financial planner or investment guru, but I think you should de-emphasize or discontinue PM purchases until you have at least a full year's
worth of expenses (including rent, utilities, vehicle expenses, insurance costs and everything else) in the bank. While building up that reserve, getting your
credit score up to an "A+" rating or 750+ score (or whatever equivalent your banks use) should also be a top priority. If your employer has a matching
savings plan, you should positively make maximum use of it.
This is definitely a "no fun" agenda but if you do it, you'll be happy later on that you did.
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Rest in Peace
United States
4078 Posts |
Quote:
I am still living with my parents, rent free Quote:
So I am young, only 24 Coins are great to collect, but your actual cash value is negotiable. Build up your savings for future down payments. |
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Pillar of the Community
United States
5823 Posts |
Sound advice from above all!
It is a good thing that you are likely debt free from your statement above (just paid off major bills). But be sure to save and have emergency cash for 6-12 months!
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Valued Member
 United States
239 Posts |
Well I mean a years living expenses would equal to roughly 20k ATLEAST if I were to include rent, car, insurance payments, cell, food, etc. I do live in New Jersey after all.
And there is no way 20k is near practical. I have my checking acct which I load up with money to get me through the week, plus any bills I have, then I put X amt into savings.
I cant open an IRA right now because of my employment situation currently (I am not on Sams radar).
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Valued Member
United States
456 Posts |
Baby steps. Just like your stack, build it up a little at a time, and soon enough 10-20K in your savings account won't seem so far fetched.
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Pillar of the Community
United States
1200 Posts |
When I was 24, I was only 2 years out of college and into paying off student loans and I already had a wife and 2 kids in diapers. From my perspective then, $20K
in the bank was "Mission: Impossible" just like you feel it is today. "Been there, done that!" But--time does march on and my 2 little kids are now in their late 40's.
Keep a copy of that post where you said "no way 20k is near practical" so you can look at it when you're in your late 40's (probably with your own teenage kids) and laugh.
In the meantime... SDC hit the nail on the head. Start on it now and in less than a year, you'll be surprised by how much less unattainable it seems. If you stay in
the "no way" mindset and don't start working on it, it will remain unattainable and when you hit 50, you'll be sustaining leg muscle damage from kicking yourself
in the keister as much as you will be. You may be only 24 but like Yup said above, you're already "...fighting against the clock."
Not to open up another Pandora's Box From Hades, but I don't think it would be prudent for you to plan on Social Security being there 40 years from now to send you
nice reassuring bank account deposits every month, either. I suspect that retirement funding-wise, you're probably going to be on your own when you get to that point.
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Valued Member
United States
239 Posts |
Yea I am not too convinced SS will be around then either.. And if it is, +1 for me lol
But with that advice I shouldn't buy any more PM's until I have at least 10k in the bank, which will not happen for a long time. I could do it in about 2.5 yrs time maybe but I am not good with saving, learning, but not good.
I should of asked what percentage of your worth is in PM's?
The stock market is too intimidating.
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Pillar of the Community
Japan
666 Posts |
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Pillar of the Community
United States
1200 Posts |
I'm too high in PM's--around 25%, although in my situation it's an inheritance thing for my (already old) kids, so I'm not sweating being PM-heavy.
I think saving is one of the biggest drags in life, and it's hardest of all when you're young and have little or nothing already saved. Getting better at saving is
mandatory and in the long run I suspect you'll find there isn't much that's more important. And (sorry for being a drag, but) a better reference than $10K in the
bank is at least a full year's worth of all expenses, and two years worth would be better. I know---major bummer. If you want to accelerate the process, zero
out tobacco/drug expenses, get alcohol costs as close to zero as possible, start a family later rather than sooner and forget about fancy cars, motorcycles,
guns, etc until you're rolling in dough. How's that for the blueprint of a drab existence?
You made it through your episode of gold nugget fever OK a while ago and you're displaying wisdom by already thinking this thing out and also by being
intimidated by the stock market. That's a great place for newbies to lose their BVD's and you're smart to avoid it until you really know what you're doing there.
Keep thinking, keep planning, get better at saving and you should be OK.
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Pillar of the Community
United States
3670 Posts |
I cant keep money around as I may spend it on something stupid, like nothing I got to show later like food or gas so I tie 95% of everything up in store stock and pmz, but I am a fool, lol.... Listen to the wise above, you are young, time to stack later..... But if you get the urge to go on trip to Florida and blow a bunch on girls and drugs and booze, by all means please log into APMEX and clean out your account first on some pmz, and you will thank me later ;)...... Edited by Silverhawk74
08/01/2013 11:24 pm
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Pillar of the Community
United States
3670 Posts |
It really comes down to how fast one can turn assets back into cash when needed and nothing is more liquid then pmz and that is what I do best unfortunately as I am most IMPATIENT human or Earth perhaps, but I am learning to stash it away and forget about it and keep adding to pile..... If I need to turn back into cash, that is no problem as I will always find a buyer, even if I have to take a tiny loss or break even, which when one needs cash, what does that matter it is irrelevant.... I sold something for a 50 buck loss a few weeks back and put that 600 cleared back into 3 rare European transformers that I sold for 1150 before ebay an pps 13% and shipping, so cleared say about 1k or 4 hundred.... The thick headed person who refused to take a loss and move into something better would have never had that chance, via I couldn't have re-invested without taking a loss and getting what cash I could back out of bad buy 1st.... Edited by Silverhawk74
08/01/2013 11:26 pm
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Replies: 68 / Views: 6,261 |
Posted 08/01/2013 4:15 pm
