As a new Stacker I keep hearing that I should set goals early to help guide my purchasing decisions. Right now my long term goal is to have money when I retire to supplement what paltry retirement and social security I should get (this is not a discussion about that). My short term goals are to collect X ounces of precious metals over Y amount of time. Since I have just started and it's October I have accumulated 100 oz of silver and <1 oz of gold and platinum. Based on that, say I set a goal of stacking +/- 100.75 oz of precious metals with the ratio being 70% silver, 20% gold, and 10% platinum, every six months. (I had it at every three months but l adjust to every 6 months because that is too financially aggressive once I factor in the 76/1 silver/gold ratio and spot prices, let alone premiums!) So, changing the formulas to be based on value rather than weight, but maintaining the 100 oz of silver goal and 70/20/10 ratio, I could conceivably stack .45 oz [14 g] gold and .3 [9.3 g] oz platinum in addition to the 100 oz of silver every 6 months. What are your thoughts? Is this 70/20/10 ratio a good strategy for stacking? Thank you for your thoughts and comments.
I'm interested to know what would happen if we had a bounce upwards within 5 years. Would you still be buying with these ratio's if silver went to $25usd spot price and gold stayed as it is? Commodity's are volatile so the assumptions made now on your goals may differ in a few years time. Additionally, how do you compensate for inflation?
That is a very good question! I don't know, I assume that my pay will increase as it has in the past though it never will keep up with inflation, I just keep buying at the 70/20/10 ratio even if that 70% is only $50. If silver hits $25 spot then I would, start selling a portion of the stack in hopes I could re-buy in a downward trend. What happens if silver hist $10 spot? I keep stacking, in my mind, silver in the safe is better than digits on a computer. These are not hard numbers and can be adjusted as life goes on.
That would mean you'll pick up 2800ozs silver assuming you can handle the inflation, no emergencies etc (200ozs per year for 14 years). And lets assume that you'll live an average lifespan of 85 years, that'll mean your 2800ozs will need to supplement your income for 15 years after retirement. That means you'll churn through 186ozs per year, and assuming that prices stay around where they are now ($20) that would give you around $3720 per year (or around $70/week). Is that enough of a contribution to your retirement from your stack ... only you can answer that. And lets not look at the Gold or Platinum, they can be the cherry on top. Good luck either way!
I don't have any strategy at all Well, I guess I do - my strategy is that any spare cash I have goes into buying more silver/gold as this is how I like to save money, as opposed to holding large amounts of cash that I would most likely otherwise piss up against the wall Whenever I need a little cash, I sell a little silver, and then keep using extra cash earnt moving forward to continually build the stack and save I see buying/storing silver/gold soley as a way to save a little nest egg on the side - I don't see this is as a way to make money or protect myself from finance collapses etc - I don't worry or buy into any of that sort of stuff personally, this is just a fun way to save
I am going to look into these scenarios. Throw it against the proverbial wall and see what sticks. Thank you.
That is what I am doing now. It's a way to save and I can't make compulsive purchases on-line. It's working out great too.
That is good advice as well, 186 oz doesn't seem like a lot but very doable. I have been reading about having some gold just to keep some diversification in my stack, and yea, I gotta thing for platinum. Love that metal so I am collecting it just because.
You forgot one other silver stacking goal - stack as much as you can afford which I gather would be a popular one.
start 0 save 10% of your cash to be used to satisfied your addiction ag convert that $ into metal when price drop, eg 10oz per month target, within that 12 months, you must have 120ozs... do this a few years after target is achieved, start into pt au etc swap to maximize ozs later on avoid getting into a situation where you are forced to sell now silver pt and au the goal is in the ounces, there is not much point to target a $ price value many years too far ahead
I read somewhere that there are three key letters in the word "FUNDAMENTALS", Yup, it is correct "FUN". Enjoy, relax and have fun on the process of saving.
