I'm new to stacking. As a matter of fact I just made my first purchase this week and now that I have made the plunge I find myself with more questions than I had before. I am not a volume buyer. I make small purchases as my budget allows but I know eventually I will accumulate enough 1 oz. coins/ bars that I will have to move into larger bullion sizes. At what ratio should you think about moving from ounces to 10 oz. and so on. I would like to stay fairly liquid in small rounds/bars for any potential economic problems but still want to have larger amounts as part of my long term investing.
That's really a matter of personal preference. I'd get to at least 100oz of 1oz coins before adding some larger bars. I'm about 2/3 coins and the rest in 0.5kg and 1kg bars. I'd never go larger than 1kg because it'll be easier to sell if silver goes pretty high than a 100oz or 15kg bar. Though, there will always be a buyer for any quantity of silver, it's just easier to get out of smaller amounts quickly.
I started with big and moved down (which is really up).. ie: higher premiums or gold/platinum/rhodium/palladium/gems Once you have exhausted space then start downsizing... my end goal is a handful of valuable But if i were to buy into your premise, id buy BIG stuff when i thought there was a silver price BOTTOM or very close to it (perhaps like now) which is a good time to BUY IN, dollar cost averaging may work well for your smaller stuff.. ie: popular legal tender from popular world mints. Its good to assign rules to your strategy but i wouldnt want to be to rigid with your parameters as the pace of the market changes the game to an extent where tomorrow your outlook and logic may have totally changed. 1for1
There is no 'right' answer, but the commonly accepted principle is buy larger sizes when POS is 'low'. Then buy smaller sizes when POS is 'high'. Depends what/when you think the POS is high or low. This is simply based on more ounces for your $$$. Covert everything to $/oz and you'll know what I mean. Diversification in your stack is a cost, so I'd work out a mix first, then buy to that mix based on the above.
1for1, I would love to be able to do that, unfortunately my cash supply is very limited. I count myself quite lucky that I got into the game when I did. At today's prices I can average 2-3 oz per month. If a bubble or upward trend hits soon I may end up in reverse, buying fractionals or junk until it gets out of my comfort zone and I would have to wait until a downward trend. I got a decent start off of some scrap gold and was able to purchase a couple of 1 oz. bars and I lucked out and managed to get a few circulated ASE's at my dealers mark up for regular rounds. The rest it looks will have to be the hard way.
Do what you can afford. My pref is to get max oz for the money so, just like a jar full of rocks, start with the larger sizes then put in progressively smaller items until the gaps are full. Also depends on your gambling strategy with numismatics or collectable bullion. Good luck
To be honest, I have no strategy on collectible coins or bullion. I've seen quite a few people take a bath in collectible things. When times get tough very few things retain or gain in value whether it's cars, stamps, coins etc. I know I'm probably trying to ask alot out of my adventure into silver. Trying to establish a core amount for long term investment while also trying to build an economic disaster fund if and when the dollar tanks on a tight budget is a challenge to say the least. I got into the ASE's because of the low premium and the desire to have some easily recognizable currency in a world that may have to start getting used to dealing in PM's on a daily basis. I was also able to pick up a Suisse ounce bar for the same cost. If I couldn't get them for that price I would have just bought regular bullion but it is nice to have some recognizable currency as part of my plan. In a way, I guess I'm an ounce is an ounce kinda guy.
Ok if you dont have enough capital to get your fill of silver you should be stacking AUS decimal, specifically 5c, 10c, and 20c These are great value for money, just trade your paper in our keep them out of your change. These are Copper but mainly Nickel which is the most valuable base metal. Same logic as above post but start with base metal stacking and downsize to silver once you have run out of space. cheers eh 1for1
If you're worried about times getting tough and believe there's a chance we may one day return to using PMs as money, then I'd say junk silver is the way to go in the US. It will be easily recognized at any point in the future and generally can be gotten for very low premiums, less than a dollar over spot, meaning more silver for your money. It's a good way to add fractional silver to the stack without paying crazy premiums on half oz/quarter oz rounds. However I don't know what premiums you're currently paying..if you're getting ASEs for $2-3 over spot, I'd just keep getting those.
Holding a large bar really makes you appreciate the density of silver =) Not sure if that's relevant but anyway.... HeHe!
Dustin, I am currently getting them at $3 over spot. My local dealer has some that were painted and a couple that have decals such as the twin towers and U.S. constitution and a few where liberty and the eagle were hologramed. He is selling them for the same as he does bullion and circulated ASE's. Also let me take the opportunity to thank everyone for their responses. While I did some research into to getting into buying silver I apparently didn't do enough research into what to do once I actually got some, lol. Everyone's help is greatly appreciated.
$3 over spot is a good price for ASEs. I would say continue with those, but try to avoid the painted ones. Some people really don't like the paint on their silver. If there's nothing else, silver is still silver, but go for the clean ones when possible. Just my 2 cents. Oh and btw, consider yourself lucky. Every coin shop within a 200 mile radius of me wants $40 a piece for them right now..
For the painted ones or regular ASE's? If its for the painted ones I might have ask where you live and who the dealers are. Lol
For everything..one shop I was at only had circulated 2011 ASEs and 2012 maples. $40 each. They also had some old morgans and peace dollars..charging $35 each. Another shop had a much wider selection, of which you could pay $75/oz for a 2012 Panda, or equally bad prices on various other silver coins. ASEs were $40 there too, and he wouldn't budge on the price, even when I told him I can get them on eBay for $5 over spot.
Wow, maybe I should buy up the rest of my dealers ASE's and contact this guy and see if I can sell them to your dealer for a profit.
