I recall buying my first piece of silver several years ago and it was a little overwhelming. I asked my good friend Mike to help me get started as I had so many questions. From there I have learned many lessons and perhaps by sharing some of them here with you, it will help with your own ‘whys’, ‘whats’ and ‘hows’. This is a “Plain and Simple” way to get started and is in no way inclusive of all things precious metals.
Disclaimer: This is not financial advice! My intention is to add to your knowledge to help you make better financial decisions.
First, if you haven’t done so, I encourage you to read chapters 1, 2 & 7 of my book Money Plain and Simple or Dinero, Simple y Sencillo. From these chapters you will understand the difference between money and currency. Hopefully you have come to a conclusion that government currency is fiat and it will eventually go to its true value of zero. Below, I will list briefly the ‘whys’ and you can decide to continue with the ‘whats’ and the ‘hows’.
I believe that gold and silver will never be worthless. I believe it is a great way to save and preserve my wealth, no matter how much I have. The people that save this way call this ‘stacking.’
With this belief, it does not matter the size of the coins or the bullion that you purchase. You are more than likely to just accumulate as your finances allow you. The ‘what’s’ for this option could be the least expensive rounds or bars that have any ‘triple’ or ‘quadruple’ 9s (999 or 999.9) designations, indicating the purity of the metal for both silver and gold. As a beginning stacker, either one is fine and as you stack, later you will learn more about quality and purity. Bars and rounds allow you to purchase more with lower premiums.
Note that stacking bullion can also be of a sovereign nation. Stacking this bullion means that the coin is money and can be used as legal tender in the issuing country.
I believe that gold and silver are great assets to have in the event of a financial collapse.
This is very close to Why #1 with the intent to prepare for a financial collapse and to have converted fiat currency to hard assets like real money. Always remember that gold is primarily monetary while silver is monetary and industrial. Gold also holds more value per troy ounce than silver, therefore gold takes up less storage space. You can see this in the gold/silver ratio anywhere on the internet. Also, I state in my book and my blogs, “do what the institutions and the elite are doing,” and what they are doing is storing up gold.
Either way, the purchasing is the same as in Why #1. Find your best prices and if you like it and the price is good, buy it.
But storing up gold is way too expensive for me! I do not have thousands of dollars to do this.
Great news! Vaulted provides a great and easy way so you can now purchase gold at your speed. My good friend Ali (from our podcasts) calls it the ‘gold lay-away plan’. This is a great option for any size of investment from $100 to $100 million.
Buying and securing gold has never been more simple, affordable, or transparent. After creating an account you also get an advisor with no additional fees. Use this link for more information https://vaulted.blbvux.net/KeM4BN or call Kevin Orrick (970-385-3125). He will answer any questions you may have.
I believe in Whys #1 & 2, but I do not want my gold to be confiscated, like you wrote about in Money Plain and Simple.
The elite are slick, as they wrote a law about exempting certain gold from confiscation. If you strongly believe that this will be a possibility in the future of the US, then you can do what other folks are buying that are ‘numismatic’ coins. The simple understanding of numismatic coins is that any coin pre-dated 1933 cannot be confiscated. I know a lot of smart people have built their gold portfolio around this, but I will say that if the government really wants what you have, they will change the law, like they did in 1933. The other thing I want to mention is that today, so few Americans hold any gold unlike in 1933 (when gold was money) and it may not even be worth the effort of the government for any type of populace confiscation. It is ultimately your decision and to carefully weigh each factor and possibility. It is important to note that today there is no law or Presidential Executive Order in the United States deeming ownership of gold illegal.
Side Note: It is estimated that less than 15% of Americans own gold bullion.
I believe that there is a real possibility of a total collapse of the fiat currency system. I need real money to transact in that is recognizable to others to be able to exchange for goods and services.
This is where ‘junk silver’ or ‘constitutional silver’ is used. Many countries used silver in their money to give it value. For this example, I am referring to US coins.
Dimes, Quarters, Half-Dollars and Silver Dollars all have a silver content of 90% pre-1965. Some Half-Dollars and Silver Dollars from 1965 to 1976 have only 40% silver content. We will not cover them here. The advantageous part of all the 90% coins is that they are easily recognizable as US money by all Americans. And I assure you that if this collapse occurs, everyone will learn very quickly what to look for when transacting in businesses.
Other factors to note is to check for the wear status, meaning how worn out it is. Coins will be designated with letters such as BU, AU and Cull or the common identifiers. BU is Brilliant Uncirculated; AU is About Uncirculated, and Cull is Poor condition. Care should be used when purchasing Culled coins as they can be difficult to distinguish what they are due to wear. If you are not beholden to the pre-1965 coins, my preference is to accumulate the US Statehood quarters. They are 90% silver with virtually no wear at all. They are recognizable and priced competitively.
First, as you begin this exciting journey you will hear “If you don’t hold it, you don’t own it”. And this is true, to an extent. You should only hold what you can afford to lose in the case of a home disaster or theft. Please consider these scenarios. You can diversify through the use of depositories as well and some even meet the requirements of an IRA. As you build your wealth, you may even start holding your metals offshore! From all of my studies, I have heard to stay away from safety deposit boxes in banks. Remember, the banking system is the reason we don’t trust the currency.
Also, you should know that the cost of any precious metal is spot plus premium. The spot price is the paper price and will fluctuate based on market conditions. Then the premium is added for the dealers to meet their expenses and make a profit. This price is set usually by supply and demand. For example the American Silver Eagle is in high demand, therefore the premium is set higher than normal. To maximize value, be sure to check out any sales or deals that the dealer offers. And finally, note that the larger the item the less the premiums are. The same holds true in quantities purchased. You can look for sales on the premium prices and I have found the larger the item, the lower the premium. For example, a 100-ounce bar of silver will be significantly less than 100 one-ounce bars of silver.
Now that you have decided on where to hold your stack, how do you get it? First, I strongly recommend to only buy from reputable dealers. I personally buy online but many have gone to their local coin dealers and establish a business relationship with the shop owners. Remember, what we are discussing now is the entrance strategy. You should also keep in mind of an exit strategy too. Remember, where you purchase may be the place you sell. Look here for your local coin shop directory: https://learn.apmex.com/buying-guide/local-coin-shop-directory/
This is an online site that I have personally bought from, and I have found that they have competitive prices, good service and offer a large variety of all metals from around the world. Click here or on the banner below.
Most dealers offer discounts by purchasing larger quantities and by using checks. They accept Bitcoin as well.