Before You Start Stacking Gold...

so we're going to ignore what's happening with price just for a minute we're not going to get into any kind of profound Financial Discovery in this one we're just going to look at some of the reasons to have gold and silver and how those reasons might affect how we pick it up so I think it's just impossible to have a conversation about gold or silver performance without first having one about your use case so why you're buying gold and silver what your planning to do with it now in my last video I mentioned some of the wild silver hype it just gets a little crazy out there and if your reason for buying silver is to become ultra wealthy well it hasn't been performing up to that standard probably haven't made enough for that country estate or his or her Lamborghinis but if you just want a few ounces of gold maybe 100 ounces of silver you want to set that aside to cover a short-term emergency well you're probably plenty happy with recent performance we're looking at Gold pushing new Al time high so any gain in that context is going to make you feel pretty good about your purchases but if your use case is having a little bit for an emergency you probably just don't care why would you be concerned about a pullback if you don't plan to be using it in that time frame now I'm not doing this to become ultra wealthy but I definitely have multiple use cases for gold and then to a smaller extent silver so I'm going to cover some stacking strategies that have worked for me based on those different use cases strateg IES that are really easy to overlook when we're in the middle of a price rally before we get into it though if you're looking for gold or silver check out SD bullion new buyers even get gold or silver for spot that's sdbullion.com slne so I'm going to start this off where I started this channel off my use case started out simple this is way back whatever 16 years ago the idea that I had was just that I needed a simple emergency fund and we all know how easy it is to hijack back a traditional savings account for simple things and I wanted something that actually sidelined that cash now if you've been on the channel for a while you've heard me talk about 3 oz I don't know what anybody else would need in their particular situation but at the time that was enough for me to feel like I had a basic emergency covered now getting to that initial 3 o that didn't require any real strategy I just bought when I could and I bought what I liked at the time now if I was starting out today I wouldn't change a whole lot I'd buy the same way I'd move some cash that I wasn't relying on into gold and I I know that that's easier said than done just step one have some cash but to me buying gold is more like converting cash than it is like buying a thing that money doesn't go away I can convert it back at any time now as for what I would buy I would just keep it simple I'd buy three American Gold Eagles and these aren't the sexiest coins but they're the easiest to move and the least likely for me to get to attach to them so above Buffalo might be the same thing in terms of liquidity and a gold Maple Leaf and probably a few other coins would be close between us the more that I like a coin the harder it is for me to sell it so I would never have that initial 3 o being something like a series coin so because this is my emergency fund I'd be more likely to pick up a popular gold bar and an assay than something like these high relief luners here because most of my local shops have scanners now so selling a bar to a deal has gotten a lot easier they'd be cheaper I wouldn't be attached to them and I'd lose a lot less in a quick sale so there's not really much strategy in the stacking for that first part that I could really share I think the best way to come into precious metals is slowly and carefully just keep it simple I wouldn't drain savings to buy the gold the silver I wouldn't sell off equities I wouldn't run up credit card debt I would just make it happen as cash freed up maybe get a bonus at work maybe win a poker tournament or some other totally hypothetical scenario that definitely did not happen if the IRS is watching this but I wouldn't ape in because the first 3 ounces wouldn't be something that I plan to profit on now beyond that initial emergency fund my strategy definitely begins to change one of my wider use cases would be retirement savings or maybe call it estate savings that might be a better label now another would be to have opportunity Capital meaning if a property or land or the right investment appears out of left field just comes out of nowhere I might have some Capital to put toward it now for most of us these kinds of use cases evolve over time I wasn't going to be able to get involved in any kind of investment like that when I was say 25 so having a stack of gold available for that purpose at that time wouldn't have made much sense it would have been great but most of my available income was going to Ramen noodle so for those two purposes for the investment side for the retirement side I'm watching spot price I'm paying attention to premiums because I want to limit my sunk cost now when you start planning for scale all of the little things you can Overlook for those first few ounces become really important and it's really easy to get well into your stack before you realize this so if I had $100,000 to sink into Metals I would keep it really really simple i' buy a tube of eagles a tube of buffalos a tube of maple leaves maybe some fractional Eagles and you see the pattern here I would be really consistent now that 60 oz of gold today it's worth a lot more than 100K and this Pelican box here can hold what like $160,000 the way that it's set up here if these were all full but this would be a very straightforward sale because I don't have to pick through a bunch of variety I don't have to work through a bunch of different prices and I don't have to find a bunch of different buyers there are local shops that would buy any and all of what I have here in this Pelican box all day long now I might have to run to a few different shops to do it but I could have it all sold inside of a day now this is probably a good point to stop and point out that most of these tubes here are empty you'd be disappointed if you showed up trying to rob me now for this particular use case I think it makes a lot of sense to use a vault I keep some of what I have with vaulting service and they would quickly liquidate for me as well now I'm talking about switching to SD bullion to handle this but my current Vault makes it really easy to liquidate Eagles Buffalo's maple and Krug so that's what I keep there one more reason for my preferences so this is a minor thing but since we're talking about the details what to stack I typically keep coins in individual capsules until I have 20 of them then I move them into these kinds of mint tubes now if you're curious about these pelican cases they fit airtight tubes really well too they just happen to fit a lot of different configurations for standard bullion coins I could remove these American Silver Eagle tubes as well and drop in some slabs it just all kind of works out now I probably would not recommend keeping $160,000 in gold silver in a pelican box stashed in a Walmart safe in your master closet but I think that this does a really good job representing just how simple I would keep things at scale as soon as I start wandering start buying a bunch of different variety things that I like the whole strategy changes so nothing I'm saying here is meant as a universal rule if there are actual mistakes in stacking it would be probably not having a specific and consistent plan that would be the one that stands out to me I don't regret anything on the desk here but I have plenty of other things that are going to end up being a pain at some point now other use cases Beyond possible emergency needs Beyond building up life savings or having access to Quick capital for opportunities might be things like simple fun I enjoy collecting that's why I have those lunar there another might be disaster planning and also something that if we're being completely honest is something I would put in the entertainment category that would be shtf prep the reason it's in the entertainment category is because a lot of that is just mental exercises unlikely catastrophe planning it's just not likely that it's going to be happening so a lot of the pragmatic strategy that goes into the serious planning for the likely events is now the window so the fun stuff the semi numismatic gold that's not going to be easy to liquidate I'm not going to be running to the neighborhood coin shop to sell them and then some of the single use silver here some of the small fractional gold might never be used in a way that would ever justify their premium so in either case my earlier rules just don't apply now the reason I'm bringing that up is because I think you can make an argument that any gold or any silver just doesn't make sense if you get to pick a situation that they weren't intended to address so you could say the premiums on silver eagles are too high you could say gold backs are a terrible stacking option and you'd be right in both cases unless you don't understand the context silver eagles are the most recognizable bullion coin in the world and the exchange rate on goldbacks along with a private transaction angle gives them a pretty useful purpose in that one circumstance so either of them make a lot of sense in specific cases let me come back to that though with further details in a future video the general Point here is that the way that you stack depends a lot on your situation a lot on your use case now I'm getting a lot of questions Lately from people who are new to Gold new to Silver asking for tips how to buy where to buy all of it now I assume it's based on the extra press due to these all-time highs so I just wanted to make the point here that the way you approach gold and silver changes dramatically depending on intent so hopefully that gives you some ideas based on those different cases keep it simple for an e Mercy fund keep it organized for broader savings interesting for fun and then yeah sure keep it weird for shtf just work out your reasons for getting into it rather than trying to build the plane in the air I think you'll thank yourself down the line so let's call it good there if you've been at this for a while let us know in the comments what works best for you if you like me you ended up kicking yourself or buying some kind of Sideshow gold when you knew better love to hear that too and then some of you you're going to say there's no such thing thing is wrong gold and maybe that's true in your case let us know and then while you're in the comments be sure to hit that like button if you found any of this interesting be sure you're subscribed with notifications turned on if you'd like to see more on the topic and if you're still here thanks again for watching I always appreciate your time take [Music] care ah

Channel: 2 is 1

Views: 32,211

Keywords: Buying gold, Gold buying tips, gold and silver, stacking gold, gold price, gold bullion, gold coins, gold

Id: 6hCxH1uZlVc

Length: 11min 7sec (667 seconds)

Published: Tue Apr 02 2024