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Storage Questions Answered, Its Allocation Time..

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New Member

United States
5 Posts
 Posted 05/18/2016  5:57 pm Show Profile   Bookmark this topic Add retireat97_maybe to your friends list Get a Link to this Message Number of Subscribers

For someone new to precious metal (bullion) - I'd like some opinions re: some basic questions
Assume 10 years to retirement and just some misc ( < 25 oz silver) in current holdings
Ignore 401k as alternative as I already contribute max before and after taxes (per rules of my company's plan)
In today's world, I could probably find $200 per week to invest - that would buy me 10oz of silver per week or 520 Eagles per year.


OK,
1. Although I believe that silver is more likely to head toward its historical ratio to gold prices, and NOT become the modern day aluminum (I'm assuming everyone here knows better than I why aluminum went from being almost precious to something closer to another recyclable, like cardboard - I'll suggest industry quickly finding itself with very cheap, almost limitless access to electricity .) So, should a precious metals portfolio focus on a single metal, or is there some accepted ratio of a handful of metals? (20% silver, 20% gold, 20% platinum, I'm just throwing out numbers, what is a 'smart' allocation?
2. As long as you avoid counterfeits, and deal w/ reputable dealers, are there any bullion coins that are favorites or ones to stay away from? (I don't need a lot of variety - I could be happy w/ nothing but gold and silver american eagles and Canadian maple leaf coins - does that makes sense?
3. Some rough arithmetic yields 10 years at $10k per year = $100k in metals, or, at todays prices:
a. 5k oz of silver, or
b. 75oz of gold, or
c. Some allocation of gold,, silver, platinum, palladium, etc.
Thoughts?
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KenKat's Avatar
United States
4085 Posts
 Posted 05/18/2016  7:33 pm  Show Profile   Bookmark this reply Add KenKat to your friends list Get a Link to this Reply
I don't think there is any set, right answer. I would settle on something that just feels right, be it 40/40/20 silver/gold/platinum or 1/3 each or whatever. They will most likely move mostly together and unless you can predict the future, there's really no way to know what is right.

If you end up with ridiculous amount of physical bullion, remember there are also GLD, SLV and PPLT ETF's that track these metals so you could always supplement physical holdings with these unless your goal is to hold all of it in actual metal in case of extreme conditions where financial markets disappear (revolution, zombies, etc.).
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paxbrit's Avatar
United States
992 Posts
 Posted 05/18/2016  8:17 pm  Show Profile   Bookmark this reply Add paxbrit to your friends list Get a Link to this Reply
Given the reasons to hold precious metals, storehouse of value, substitute for fiat currency, accepted in a crisis, etc., etc., not having physical possession of your holdings makes no sense to me at all.

Figure the future value of the metal as best you can, and equate that in weight to a year or two of expenses, then go for that amount of metal that makes you comfortable. Let's face it, a monetary crisis of the worst order is going to run for a year or two, then 'normalcy', meaning new currencies, are going to return. We're not going to have a barter economy or need to take the Krugerrands to the grocery store for any longer than we have to, the world will not work that way.
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