Your opinion...

So I have been doing some research and looking for an answer to a question I have. I haven't found it asked quite this way so I'd like to pose it to those of you with much more experience in this - as I'm new to it. I have been contemplating setting aside a portion of a raise I just received each month to put towards buying precious metals. Originally I thought of just adding this to my current supplemental retirement plan and letting that be that, but I am interested in getting serious with stacking and thought this would be a decent way to do it.
So currently, I'm weighing 3 options.
Option 1 - take a specified portion of this raise each month ($100-125) and buying silver bullion on a monthly basis, and as I accumulate and prices increase or GSR becomes favorable either sell or trade into gold.
Option 2 - take the same $100-125/month and set it aside to on occasion (as price falls) buy silver in larger quantities - then basically do the same as Opt 1
Option 3 - disregard buying metals and invest said amount in supplemental retirement, only stacking silver with "extra" money on rare occasion

Option 1 would mean often spending more money a large portion of the time, but it would be consistent and methodical. Option 2 would be more bang for the buck but also may mean waiting for several months, possibly longer to get back to a "good buy" price, which would easily allow me the chance to rob the money for something else, or lose interest. Option 3 is the easiest but least interesting and doesn't offer much of a future in seriously stacking silver or gold.

I appreciate insight, recommendations, or plain and simple "you're stupid" or "you're looking at stacking all wrong". Thanks

 

Option 1
Option 2 risks outweighs potential rewards and you're more likely to just blow the cash in bulk.

 

After some years of stacking, specific price wont matter so much.
Buy when you can and dont sweat a few bucks right now.

Looking back just a year or so ago, some of the"shopping around" seems silly now.

I remember thinking 2 bucks over spot was the limit for Silver Eagles but $1.50 was such a better deal.

 

Posting metals can be a bit expensive. Try to avoid lots of small frequent packages. Small items generally have higher premiums. Second hand silver is also cheaper than fresh out of the mint.

I have a dealer who will set aside metals for me in the safe and once the weight hits around 3 kilos I get it all packaged together and sent to me. they don't charge extra for this service so it it is a good way to pick up new releases without overpaying for postage.

I also buy unallocated with spare cash, the amount of spare cash I have varies so the amount of unallocated metals I can buy also goes up and down. Because it is not in any specific form I can get it for low premium when the price drops and then when enough is built up I can get it delivered. The premiums on small units of silver are higher than on large units. By buying lots of small amounts of low premium unallocated I can convert it into a large low premium bar when I have saved up enough.

I buy buy-backs. Usually in large sizes like 10oz. Anything under 10oz and you are going to get a bizzare mix of odd shaped and unpopular 1oz rounds and bars. At 10oz you are most likley to get a generic 10oz bar. But not guaranteed, you might just get 10 odd 1oz rounds. It is a gamble but if you are not that worried about reselling to collectors then you can usually get some pretty cheap silver this way.

Spend less on premiums and postage, so more gets spent on the metal.

 

I like the idea of buying buy-backs, I'm specifically interested in weight, not the finer details of numismatics - I do not have the time to figure out the values of such. Perhaps I should look at making bi/tri monthly purchases, but there again I know the likelihood of my savings getting squandered to something else.

Thanks for the tips so far!

 

A lot has been said here on this topic elsewhere and some good tips here

If your strategy is maximum mass, then maybe save up to kilo bar point and buy a kilo at a time, ie option 2. The advantage of this is less money will be lost on premiums. The money is also fully in your control until the point of purchase.

Alternatively, you might look at setting up an account with a larger dealer, such as ABC Sydney or Perth Mint (assuming in Australia) and buy unallocated each month, eventually having it barred up and paying the premium then.

If you buy 100-125 USD at a time per month, there’s maybe not a lot of product to buy with a weight based strategy, though you could try buying older unpopular rounds, noting the ones less likely to be faked. I’ve occasionally found the odd round at spot noodling in Cash Converters, but only as a side quest. If in Australia, buying here at close enough to spot and collecting face to face with low commute costs would also do. Alternately, a stacker meet up.

Right now the physical market is tight in retail land, the premiums stratospheric and if it was me, I would only buy if I thought it was going higher. That’s hard to see given premiums must be at a historical high. Peace dollars AU from APMEX in Dec 2019 were 18 USD I think. Now dealer asking price is 42.

One graph I don’t think I’ve seen is one that tracks premiums as a % of spot over time. You could trade off that.

Keep an eye on inventory where that data is published. For example, APMEX allows you to see how many items might be available. As the situation migrates from tight to overhang the premiums drop. It’s one marker to watch to time entry.

 

Silver is bulky for the part timer, buy gold. Accumulate money and buy gold at 5 grams at a time from a dealer and hold the receipts.

 

Deceased estates are sometimes a good option in the under 1k bracket as many oldies stacked a jar of silver (and copper) coins when both were demonetised.

 

If you have access to small country towns with a large older demographic, leaving a written advert up around the supermarket or the local noticeboard may also work

 

^ No, Just no.
In the post apocalyptic era you old knuckleheads have been telling us will befall us "very soon" for the last 50 years how far do you think your silver bars will get you?
In your (never to happen anytime soon) scenario I wont give 2 shits for your 10oz bar as I beat you to death with the sack of rice you are trying to buy off me.

Edit to put the below quote here to save people watching @hardyakkagold unravel into a irrational baboon suffering tourettes.

"If you want it spelt out in black and white - your option 4 is for intellectually stunted morons who struggle to count to 12 without taking their shoes off. It is utterly devoid of any financial flair nor understanding of modern markets & economies."

 

I think option 4 is asking for the world of hurt that is the fate of the bag holder.

Could be wrong. It’s a win anyway

 

Is that your way of saying you have no logical argument to support your proposal of an option that wasnt even put out there by the original poster?

I highlighted the flaws and your response is to play the man instead of the ball?

You aren't dealing with a teenager here pal - come at this with some logic, common sense and wit otherwise you just come off as a crusty old bitch

Nothing I say has anything to do with likes - If you come off as an idiot I won't hesitate to call you out on it. Some don't like it, others love it.

 

When govts can print ad infinitum your starting point is not a starting point - it is pointless.
Old school thinking doesnt apply to MMT, They will quantative ease, stimulus package, kick the tin along long after you and I are gone.
100 years ago, even 50 years ago you were right.
Now however, you are wrong.

Dont get me wrong, have a bit of a stack...yes, diversify..hell yes...but you saying "sell your toys to get silver - durrrr durrrr durrrrrrrrrrrrrrrr Have no life or fun..stack silver durrrrrr" thats dropped on the head kinda special

Also dont for a moment think I wouldnt say the same shit to your face, those on here that have met me will tell you thus far I am being diplomatic with you.

So please feel free to retort with some logic against this "fool".

 

Your advice is ok from the “reasonably priced” perspective. But the problem arises in what might be reasonable. Premiums in the USA are bonkers high. Selling the car sounds like gambling. WSB diamond handed investment is kamikaze in nature, turning themselves into tendies in the process, because they ate beans on toast in 2008. “It’s not about the money”. While that applies to the likes of Melvin, silver is different.

Would you sell your car for this?

As you saw with the Hunt Bros, .gov can and will change the rules of the game.

That said, I agree with the idea the POS will be likely be multiples higher in the next 3-5 years. But is this the time to pay a premium which is double spot?

If you are right, hardly anyone here will be crying. The issue is more for an Ag noob not getting their feet held to the fire this early.

 

Straight back to name calling and you couldnt even read past first sentence...and Im the dickhead?
I literally said in the very next sentence that wont happen in yours or my lifetime - read what I wrote several times, in fact get your carer to read it to you too before you respond again thanks.

I told you come at me with logic and sense...so far Im just hearing name calling and jibberish.

 

I appreciate the opinions. Thanks for all the advice. I however do not feel I agree, at least not entirely with the option 4. For perspective, I live in USA in my mid 30s, with wife and 3 young kids. I can't realistically sacrifice too much to stack in my current lifestyle, nor would I want to. I do feel like we are walking a thin line bordering on chaos, but that's why I've stacked other precious metals - namely lead. I am looking at this as more of a diversification and hoping to safeguard my future even if only slightly by collecting something that can be used in place of paper money in any future reality. The allure of owning silver and gold in itself is appealing. I definitely would like to own gold but I don't like the idea of buying only gold in small increments (grams) mainly because of the premiums. I do agree buying silver, or gold, in larger amounts per transaction is the way to go. It just may not be as easy for me as smaller amounts more frequently. I obviously want to save on premiums and buy near spot, but as it seems right now online dealers are running low on supply. I have a local dealer that I've made contact with but he doesn't typically keep much on hand - which may actually work in my favor I think. Mainly because as he gathers some buy back silver, I may be a place he can sell to. I'm still working on my technique for sure and my plan as a whole and you are all helping to evolve that tremendously

 

Call me names then if it eases your Tourette's @hardyakkagold but in between the names and the facial tiks from being triggered please present a logical argument.
I tried levelling the playing field to give you a fighting chance by not resorting to name calling, I dont feel the need to with you now ol timer

If you want it spelt out in black and white - your option 4 is for intellectually stunted morons who struggle to count to 12 without taking their shoes off. It is utterly devoid of any financial flair nor understanding of modern markets & economies.

Come to think of it I can now see its appeal to you.

 

The number one thing to remmber with metals is that they don't produce an income.
It can be argued that over the longer term you might be better off putting your monthly windfall into a dividend paying ETF like VHY. That way you get paid a dividend every quarter and it can get reinvested in the fund or taken as cash.
Metals have a bad habbit of staying flat for a loooong time. Sure it "might be different" now, or it might not.
I prefer to look at metals as an alternative to cash in the bank, and you should have a stack of (easily convertable) metals/cash for rainy days.

Sounds like you don't have any income producing investments, in which case I'd take Option 3 and invest in VHY or similar. Over the long term compound interest/dividends is incredibly powerful. So I'd say 2/3 VHY 1/3 unallocated metals at the Perth Mint (no storage fees, no shipping fees, can sell instantly and get the cash)

 

For starters @User Name Here don't take advice from broke ass jokers who can't even logically defend their opinions they seem fit to share

 

Announcing Im on your ignored list is old man version of going on facebook to say you are having a break from facebook.
Don't announce it you old weak hypocritical bitch just do it.
See what happens when I stop being diplomatic? Dumb asses like you get offended.

PS - thanks for the entertainment