Arcanist said:
Did you see that my loan increases with inflation?
Splitting up my money like you said seems like a good idea.
Wouldn't it be important to be able to trade in amounts lower than 1oz? I was going to buy granules so I can trade with any weight and because they have no premiums. Why did you choose the ones you chose?
@everyone
I'm not getting silver to solve money managing issues. I put a lot of thought into my money
Someone that trades currencies, silver and gold told me that silver is a good place to store wealth even without factoring hyper inflation. I will, of course buy physical silver
SUMMARY
Thanks everyone for your answers. My current plan now is:
- Buy $500 silver (I really don't want to be caught without any silver if the price suddenly rises)
- Allow bank account to reach $7000 and don't let it go below that often
- Pay off loan in one go if I can pay it off before the annual interest ticks
Nobody answered what will happen to the inflation-increasing-loan if hyper inflation occurs but you have been valuable
Ok I can only touch on the surface of things, there's too much information to try to pass on to you. I am trying to help you as much as I can and share my knowledge/experience.
Yes your loan will increase with inflation but remember inflation will always be calculated using the government CPI which is a scam anyway. Your borrowings and interest rate will always be below "real inflation". So honestly don't worry about your loan, if it all goes pear shaped, the probability is that the obligation literally won't exist. I am all for pay it down though but not in one hit I think it's smarter to pay your loan as you go for a number of reasons. I'm not sure how your loan works and how the interest is calculated, I doubt that it is yearly. It will teach you how to divide money and have different "portfolios", this lesson becomes very important later in life when you'll have a lot more money. Plus it helps your current position the most.
DON'T buy granules ever, unless you can get them below spot and can assay them after melting etc. You can't so don't touch them. Resale is terribly difficult.
I've been doing this gold silver thing for over 10 years now and have a few years under my belt.
My thoughts on what I would do- Buy crocodile coins tube of 25 and leave it sealed, buy 1/10 gold snake or horse lunar, buy 5oz or 10oz horse. (notably all perth mint products)
These coins are low premium (price above spot) and people pay more because they are collectable plus you have silver at the end of the day, hyperinflation or not. You score in the best of all worlds here and maximise your potential profits on all side whilst minimising your risk. Forget about fractionals for the moment. You can add a bit of pre-decimal junk later down the line. When you have an even bigger stack.
Hyperinflation may or may not happen but I can be certain that those crocodile coins will have a greater premium than they do at this moment in time. There will be a time when you can use that increase in value and sell them and get more silver. Say 25 x 1oz crocodile tube buying you 35 x 1oz coins in maybe just a few years. And if hyperinflation does set in and the value of silver soars you still have your silver.
The division of funds is specific, I looked at your position, age, earning potential, portfolio/savings, economic environment, price of silver, current opportunities in the market. Plus more!
Basically stack more, pay debt, save more in 2 forms (1) short term (2) long term.
It's excellent that you see the wisdom of about $7000 not to be touched, on pain of certain death
savings.
