Being a noob (you don't know what you don't know till you know it) i was wondering what is the general consensus on what would be the "optimum stack size" in silver ounces Gold or the mix. I know it depends on the individuals goals & differs greatly between say a SMSF person & an investor or someone just hedging against the value of their paper money / assets etc & available funds verses price per ounce. I think it would be interesting to hear what different people feel is their optimum stack size whether their at that point, passed it or working towards it. Also how have people worked out what their stack size should be in the first place. Sorry if this has all been discussed before in other posts or if people may not feel comfortable sharing this kind of information but like i said I'm new & hungry for information from people with first hand experience. Being dyslexic makes it a slow process reading enough books & being so late to get into stacking i feel kind of late to the party so to speak. Also how many members here have you tube accounts? If you would like to share your channel names openly or just via pm that would be great also. Mine is 1pathseeker, sorry nothing to do with stacking LOL just martial arts & general life bits & pieces pets etc.
I heard once that you should have at least 3 months of savings in the bank in case of an emergency. Convert that to silver or gold and I'd make that your first target. I reached that target and it did make life seem easier some how, just knowing its there. Pick whatever ratio of gold/silver you like. Im 100% silver but some say silver is more speculative and gold is more conservative.
That's what i'm trying to work out now. I've just got into PMs in the last coupla weeks, with no spare fiat to swap for it. However, i've managed to collect a few ounces, which encourages me no end. I like the idea of the 3 month reserves goal. Personally, i'm still wishy washy. Learning the relationship between money and PMs, the relationship of silver to gold, and why in the first place I would want to stack PM. I know it's the right move atm, but I don't know why it's the right move. Yet. I aim to find out. I guess then i'll have an idea of what goals to set,
Also depends on frequency of buying, average size of lot bought, and these should be initial considerations for a stacker, regards how much into which metal to put. If your purchases are going to be on the 1st day of your paycycle, ( once every 2 weeks ) ( 27 individual purchases) and purchases going to be less than $300 per fortnite, than go with silver to avoid paying large premiums if you were buying gold. with $300 per frtnite per metal around 10 oz of silver and around 0.2 oz gold. and in GENERAL the premium you will pay over spot would be higher if you are buying gold. Thus buy silver. Later on you should venture into gold, by also maybe swapping part of ur silver collection. Every time i have bought a gold coin ( not many times ), i used the funds to pay for that gold by selling part of my silver collection, and every time I sold that ( bought with silver) same gold coin, it was with the view to buy more silver. In a nutshell, the decision to go with silver or gold and if both, in what ratio is mainly a function of your intended buying frequency and Size of acquisitions.
During my lifetime I will buy a nice property with 1000oz of silver so I always have at least that much. If you want a mobile stack buy more gold and platinum/palladium.
I've been stacking for about 6 weeks, and my gold:silver ratio is somewhere around 35:65 (going on current spot). In terms of stack size, my current goal is to get to a point where PMs make up 10% of my assets - i'm currently at about 1%, so i've got some serious stacking left to do I initially bought silver exclusively, but also started stacking gold a few weeks ago. My plan is to alternate purchases: buy silver one month, gold the next. In the long term, i'll be keeping an eye on the GSR and trading in portions of my silver for gold at certain milestones in that ratio.
Join the 1000oz club first, then start worrying about what is the optimal stack size. If you need 1000oz to pay for a new medium size car (which you do) then you can be sure that is not an optimal stack size. I am having serious doubts that 5,000ozs is enough unless I already own my own home and wheels.
5000oz sure would be nice but that is way beyond my means (on the other hand I do already own my own home and wheels). I think it makes more sense to talk about % of savings in PMs. I'm at 75% currently and of that it's split 80% gold and 20% silver because I think that while silver could make higher gains it's also higher risk. I now see high inflation as a strong possibility which is why I'm no longer going to leave cash sitting in the bank.
I think 5,000 equivalent silver ounces is plenty. Equivalent ounces is the amount of silver you'd have if all your gold was silver at the relevant GSR. My equivalent ounces is actually shrinking as the GSR plummets. Am I worried? No. I knew this would happen and made the decisions based on it. At a lower ratio I should have equally valued gold and silver.
I agree with TopMetal. Silver is volatile and a bigger risk, more of a short to medium term play for investment return. Gold is better for medium to long term superior wealth asset. My specific target is to have enough gold and silver to buy a house in 5-10 years time. This is a good target because it keeps me learning about the value of metals and other things like houses and challenges me to understand where we are heading with the future value of things. Currently I have 10:1 silver to gold by weight. total wealth in 60% pms and 40% savings. My current trend is savings into gold.
Welcome to the "stackers-world" dross. I'm stacking for 7 months now. As a medium income stacker who's house is paid of, my aim for 2011 is to grow my stack with atleast 4 oz Au and 80 oz Ag. I'm 80% gold and 20% silver in value and want to work my way to 50% / 50% ... just hope the GSR improve. Enjoy every moment of your stacking mate
Thanks for the insights guy & AU79 i have to say its kind of nerve racking in the beginning especially with the price rising by the moment i just want to get a stack under my belt & then continue to add each week. I figure if i work 10 - 11 hours days i can use the extra income to buy between 10 to 20 oz a week until i can back off a little.
Yes nerve racking, but as you slowly stack and your experience grows, your need to chase a quick deal in order to initially start a stack is tempered by the realisation that you must be getting value in order not to extend yourself too far. And what I mean by this is the lowest premiums possible and responsible spending in order to not screw your general living expenses budget and the responsibilities you have to family members. I have only begun stacking silver over the last three months, having been a junk gold collector on a very minuscule scale in previous years. Lucky that gold went up and was able to sell at a profit and purchase a couple of small bars of Ag which makes my hoard look more pleasing. Have a small stack of Ag in bars and coins and nearly an equal amount in $value in Au that is now satisfying but a pittance compared to others on this forum. Less than $4Grand. When I look back that's over a grand a month! That's enough for now because it's a little bit more than I'm comfortable having spent. I repeat, just a little. I know my hoard is large enough when I start to feel just a slightly bit awkward with what I have spent. Will rest for a while - got my eye on some nuggets and a 1kg silver bar from an old gold prospector down the road though- but that's enough for now. Would like more but can't. Gotta feed family and pay the bills. And if silver goes up in the meantime, that's life.
Well this morning i went to the monthly coin fair here in Brisbane (ultra small but very friendly) & picked up 10 Florins (1910- 1945) & one (1954) because i like the design. That's 3.55 ounces for just under spot, well it's a start & something to rub together while i wait for all the other stuff I've ordered to show up. Thanks for the advice guys, next time I'll hold off until i can get better prices though. Source:
Very nice mate. You got a good deal there. Florins are around 1/3 an oz a pop anyway and I'm a very big fan of the design. Considering you got them for about the going rate of a 1966, I think you got a great deal. I'm a really big fan of the Australian Florin. Sterling silver coinage is just so damn sexy!
