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 Replies: 25 / Views: 3,730 |
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Valued Member
United States
174 Posts |
Yes, I have read EVERYTHING on this site, however, I cannot seem to agree with a single person's point, rather a mix of opinions and my own research, wits, risk tolerance, and gut feeling, is what I have taken for my own strategy.
I am in my 40s and will work in a professional field for another 20 or so years. I have an 80/20 rule as follows:
80% in 401k, 20% in physical PMs/Cash. I have no debt.
Since this is a forum regarding PMs, I will only provide input to my 20% bucket:
First, Gold and Silver haven't been worth zero ever.
THE US Dollar is, and will be for a long time, the foundation of the world's economy. However, I don't think the world will crumble if we do. People and countries adapt, and will; with or without us. It's kinda like thinking you are so important at your job, and they could never lose you. Even if you are the best, you can still be replaced. I see it happen all the time.
My goal is to have a 50/50ish split between gold and silver. I will continue to buy at these levels every month in small to medium sized amounts (more than $100, less than $1k), and when dips occur, I will "double down" my monthly PM spend. In a really big dip.... well, it'll be more in the order of 10x.
As the price increases to my first-buy level (AG @$30 and AU @1500), I STOP buying.
Here's why: I don't intend to touch this for a while. Remember, the "goal" is to have MANY buckets to pull from upon retirement. Some tax deferred, some tax free, some you will hold, some you will fold.
If and when, silver hits $55/gold hits $3k or so per ounce, even if it's this year, I dump 1/2 of everything. That makes what I have in it fully reimbursed. Everything I have remaining is "free". This "free pile" will be sit on for a very long time, maybe forever.
If it doesn't have this movement in 20 years and it's 1/2 of what it is today, I do nothing. If this is the case, my cash/401k will carry me just fine. If I die and leave these stacks behind, that's fine with me.
Remember, NOBODY knows where it's going. You can follow trends, charts, crystal balls, whatever...
What I do know is:
Other economies will fail, "Bitcoins" will come and go. Gold and Silver have universal value. Can you name one currency that, 200 years later, you can bring it ANYWHERE in the world and get a constant price for it? I can bring an ounce of gold my forefathers pulled out of the ground 10,000 years ago to China, India, US, England and get whatever local currency to spend on goods/services. If I brought a 500 year old (Chinese dollar) to Germany, I couldn't find anyone (other than a collector) that would give me a cup of coffee for it.
In my opinion, the entire world is over inflated with paper money. As more and more people realize this, there will be a long term shift to PMs.
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Pillar of the Community
United States
1200 Posts |
Quote:
I cannot seem to agree with a single person's point, rather a mix of opinions and my own research, wits, risk tolerance, and gut feeling, is what I have taken for my own strategy. That's as good as it's ever going to get--and if you have a mind and do your own thinking, that's the way it should be. Hoping to find or achieve anything more or better is unrealistic for people who think for themselves. That having been said, I hope you've got your high water boots on because you just opened the flood gates and now there'll likely be a flood of opinions coming your way. Just be sure to keep on doing your own thinking, drawing your own conclusions and charting your own course. That's what minds are for. |
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Valued Member
United States
102 Posts |
leo I totally agree with your plan and would like to also suggest nickel be added to you stash. This link might help you in your pursuit of the right balance of PM's http://www.mining.com/web/royal-nic...ickel-mines/ good luck on your adventure of life |
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Pillar of the Community
Canada
576 Posts |
Well said on both messages above. My part of the flood gates is this: I agree with all of my heart that if you wish to invest in PMs you should be debt free. There is too much uncertainty with PMs and paying off debt is a sure way to save.
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Valued Member
United States
102 Posts |
mr. Liverpool key to your comment is STAY out of debt. When the printing presses stop and inflation goes off there will be correction in the direction that the USA will head and the people who followed that way will be left in the dust.
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Valued Member
United States
102 Posts |
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Valued Member
United Kingdom
183 Posts |
Quote:
If and when, silver hits $55/gold hits $3k or so per ounce, even if it's this year, I dump 1/2 of everything. meaning you convert half of your pm holdings back into dollars. the numbers may be the same but the purchasing power of each dollar at that point should be less.(hence the rise in pm's price) you should focus more on the purchasing power of what you own at each stage and less on the absolute value or profit that you may have gained. HH Edited by HawkHybrid
02/16/2014 2:21 pm
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Valued Member
 United States
174 Posts |
woodywood, when you say "nickel", do you mean bullion or US Nickels (75/25)?
I have a good stash of US Nickels, but these are very long term.
I know that older canadian nickels are 99%, but going rate is 3x face for those in 10# lots.
If the metal nickel goes up in price, I don't see the 5 cent coin being sold as 90% was, at least not until US changes it's composition.
Is there a good place to get Bullion in 10, 50, or 100 pound bricks?
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Valued Member
United States
102 Posts |
US nickels are as safe as you can get their always be worth 5 cents but could be worth alot more. Gov already spends 10 cents to make it. You can also find bullion in the way of scrape metal. I pressure wash for a living and the pumps on some of your pressure washers have nickel heads for better heat displacement. There is more nickel applications out there.
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Valued Member
United States
102 Posts |
Oh yea each head weights 14 pounds. nickel has been around 10 bucks a pound I think its around 6 bucks now.
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Valued Member
United States
102 Posts |
check your local scrape yard they always have nickel along with your copper,iron,aluminum for sale. Tell them you need a few 1 foot by 1 foot squares for a welding project.
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Pillar of the Community
Canada
3692 Posts |
I don't buy the argument that PMs prices are correlated with inflation or buying/purchasing power. Why then did the prices dip so hard in April? Why do they drop at all - should they not stay stable? They're traded as commodities.
A year ago an ounce of silver could pay my transportation for 5 days. Today it only covers a fraction of that cost. There's really no guarantee.
Re: "nickel bullion"... Let me sell you some Canadian coins and other foreign coins for their nickel value. Any takers? There's even copper-nickel, so you can diversify! ... :(
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Bedrock of the Community
13014 Posts |
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Gov already spends 10 cents to make it. Which is why theyll never be legal to melt. Maybe in a 100 or so years if theyre no longer used at all like the 2 cent and 3 cent pieces, but not our lifetime and the ultimate return on hoarding nickels would be awful from a metal content standpoint. Same goes for pennies Sap had a post in another thread about it as well explaining how expensive it is to melt those mixed metal coins. Quote:
Everything I have remaining is "free". Best plan someone can have that wants metals. You cant lose when you have nothing invested in it and its all profit |
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Valued Member
United States
102 Posts |
are 1964 dimes , quarters and half's legal to melt ?
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Valued Member
United States
102 Posts |
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Bedrock of the Community
13014 Posts |
Dimes quarters and halves are cus the government makes money having to replace it so they dont care. Nickels and pennies are illegal
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Replies: 25 / Views: 3,730 |
Posted 02/16/2014 09:35 am
