Stacking Silver 101: Tips For Beginners

what's up stackers wanted to welcome you to the silver and gold stack attack channel on youtube i'm your host neil g and this is actually the inaugural vid for this channel so i appreciate you tuning in uh today we're gonna cover some tips for new stackers some things to avoid when you're first starting out and some general tips uh i know what you're thinking another silver stacking video on youtube right i mean there's no shortage of them um it's all good if you're anything like me you looked around for as many user-friendly sources that you could find when you first got into this thing so all that being said let's get rolling so you've decided to stack bullion well the first thing you got to do is decide what kind of investor you're going to be very important you got to know what your strategy and end game is before you get started uh because if you don't have goals and plans you're going to wind up buying stuff all over the place with no apparent game plan uh that costs you money in the end set up a strategy stick to it and be prepared to modify that strategy as the market dictates so why are you stacking now always keep in mind that regardless of that strategy the focus of precious metal investor needs to center around being a long-term game remember that long term it needs to act as a hedge against inflation be a backup plan against economic turmoil could even be a cover for any road bumps you might hit in your other portfolio markets uh we call that dollar cost averaging over time silver is not going to be a get-rich-quick endeavor it's just not it's going to take patience and fortitude to keep your holdings throughout the dips and rises that silver is famous for it could take years to see a nice gain sometimes decades and it could take insane drops during your whole time the key is don't panic you got to be prepared to ride that storm out precious metals are among the most manipulated commodities there are you're going to see a lot of changes in value and let's face it silver is one of the most volatile metals out there so the biggest thing you got to figure out is this are you stacking or are you collecting there's a major difference between the two so you've got to decide one or the other or even maybe a healthy balance of the two everybody's into different stuff in my opinion new stackers should focus on getting the best value for the bug and to me that's buying the highest amount of silver for the lowest cost possible uh you're going to go to these coin shops and you're going to go online you're going to see these beautiful american silver eagles uh other government-issued stuff that looks absolutely phenomenal and there is nothing wrong with stacking eagles and other government bullying nothing at all they're typically among the nicest out there they're very they're very attractive and they're kind of hard to stay away from to be honest i've been guilty of that and um i do enjoy buying other government issues from other countries um you gotta remember though on government issue bullying the premium the premium and that's how much the dealer is selling it over spot value the premium is high on eagles maples britannias uh krugerrands you name it um eagles themselves i mean even with currently as of the date of this video um silver's right around the 25 26 dollar range silver eagles are going anywhere from 32 up to 49 and up i mean do you think you're gonna get that back if silver doesn't take a huge climb in value when you go to catch those eagles then you could take a hit um but that being said eagles maples britannians crew grands they're all the most popular since they're created by government mints and they haven't assigned monetary value and the content impurities backed by the sovereign nation that issued them so there is value to government-issued bullying but on the other hand another option to get the most bang for your buck is generic silver rounds and bars a lot of stackers are going to tell you the main objective is to amass as much silver as possible and the best way to do that is to keep your cost per ounce down as far as possible the money you save buying a roll of 20 generic rounds could actually add up to one additional ounce of silver in comparison to buying a roll of 20 eagles we're talking about an approximate five percent more silver for your buck when you compare generics against government bullying coin purchases but we're going to cover that later on in this video so we'll hold off on that so just remember silver is a long game if you're stacking in the hopes of making quick money you're probably among the minority among stackers you need to understand your reason for stacking uh which will help you develop your strategy that strategy can evolve over time how much do you want to stack if you're collecting silver how large do you want your collection to be these questions are gonna help you develop that strategy try beginning with your end goal and work backwards from there so let's talk budget determining your budget is one of the most important aspects of stacking bullion when you decide to get in we've talked about already some stacks over as a hedge against inflation others in hopes of silver blowing up some decade from now so they keep a mass in large quantities and others stack as a hobby again not many people are stacking silver in hopes of financial security it's not that kind of precious metal yet we're not there um some might be tempted when they first get into blowing entire paychecks on bullion uh you need to avoid that you may have heard that the magical 100 ounce is upon us soon or you're motivated out of fomo fear of missing out and you're afraid you're not going to get any silver your budget should always be determined by your investing strategy and nothing else don't panic buy and don't panic sell remember we talked about it this is the long haul personally i like to think about silver as a savings account one way or the other it's going to be money and i'm not out there spending it on other frivolous things as i can be prone to doing uh your best bet is to budget a certain amount from each paycheck that you can afford to spend um you've already decided you've looked at your bills you know what you can afford you know what you got left over stick to it in theory you should consider one major factor before allocating any of your wages towards stacking bullion uh how much do you have in cash saved in the bank it's an important question ideally with the way things are looking at this moment in history you should always have at least three to six months of living expenses saved up before you begin spending your hard-earned money on bullion that's your emergency fund hey why is that well bullion isn't as liquid as fiat currency in the event of an emergency this is not uh something goes wrong in the country everything crashes you got to find a buyer who's willing to cash out your silver and that could take time so believe it or not unless the dollar is has completely died out you know you need to you're going to need to count on cash so once you set your budget stick to it when you come across any extra funds like bonuses and whatnot you can always buy a little extra but you don't want to tap in your emergency save as a stock up on bullion fiat dollars may be declining downward but as of right now they still have a purpose and that's quick access to pay for emergency needs you need that pricing and premiums when you start stacking any kind of bullion it's important to understand both of these uh spot price is constantly changing and usually by the hour it's a good idea to have a phone app nearby to check the current rate before purchasing or selling um they change by the hour they literally change so frequently as you already know the spot price is the asking price for the precious metal the kind that you buy is going to determine the premium that you end up paying for example premiums on american silver eagles they're high okay they're high these right now i think these are overpriced as far as what they're selling for um but these are government-issued bullion you got canadian maples the uk britannias australia kangaroos kruger ants pandas libertads philharmonics these are all examples of government-issued bullion they come in several measurements but one ounce is probably the most popular for stacking but these are the coins that are going to have the highest premiums okay but they have a face value they're more recognizable and their authenticity is basically confirmed by the issuing mint so you got to pay for those features okay but when it comes to generics you're going to get lower premiums these are less recognizable and pretty plain minimal design not a whole lot of cost has gone into these but it's an ounce of silver bottom line um they're your basic measures and probably the most cost effective way to stack if you're going for sheer volume okay sheer volume and generic is the way to go because you're going to pay the lowest premiums on these all right um that being said if you need to sell your collection in a pinch you're going to have an easier time selling eagles than you would generic rounds and bars government government bullion just doesn't have that problem okay it could be it could take you a long time to sell your your generic silver uh in case there's issues or somebody believes there's an issue with it another example of a generics one out one ounce round i mean it's it's simple there's nothing crazy about these it's one ounce of silver okay so those are your premiums basically the cost over the spot price uh that online dealers and local coin shops are charging you that's how they make their money they got to make a buck that's why they're there um that being said don't settle for high premiums i don't it doesn't matter how badly you want that silver eagle you shouldn't be paying an insane amount over spot for them all right um it's just not a cost effective way to stack silver i've seen eagles for thirty three dollars thirty two dollars and then i've seen them as high as the mid forties to low fifties do your research before you purchase all right so we've just covered the generic versus government-issued bullying topic so that means we're going to move into uh bullying from around the world i'm going to give you my top eight this is just my opinion um based on how well they sell design they're all nice um and these are all one ounce coins so we'll get started this is one through eight you might have a different one through eight a lot of other people will have a different one through eight but these are mine in particular so here we go coming in at number eight from mexico the libritad okay this design has actually changed this is an older one but i prefer this one over the new one because it's got more detail to it this is three nines fine one ounce and this is the back side you can get these at a decent price premiums aren't too bad on them so that's number eight coming in at number seven from austria the philharmonic this is also three nines fine um it's also that believe the first government round to be issued in euros if i'm not mistaken somebody can check me on that but the premiums on these are pretty reasonable okay they really do have reasonable sale prices on these so it's a very popular coin in europe it's it's nice it's easily bought and that's number seven number six coming out of china the panda series uh people love these um these are really detailed and the good thing about the panda series is that they change every year so you're going to get a different design each year that they're issued that's the temple of heaven on the back you can see this is a 2015 okay but this is a very very popular series these are not going to be cheap the premiums on these tend to be a little bit higher sometimes just depends when you catch them so that's coming in at number six all right we're in the top five top five from south africa the krugerrand now this one's a 2018 and this is the first year i think that these were issued in silver up to that point krugerrands are only available in gold so this is the first time that these came out in silver uh this is one ounce i believe three nines you got henry kruger on the back uh south africa's first and only president and i think the simplicity of this one is what makes it popular it's a it's it's a beautiful coin uh premiums are fair to midland on these all right so that's it number five coming in at four from australia down under the kangaroo hey this one's one ounce four nine's fine so it's a little bit pure silver than the three nines uh when it's all said and done it's still an ounce of silver so this is a 2016. and you got queen mother on the back get used to that face uh she's on pretty much everything so this is number four the australian kangaroo it's a very popular one top three number three coming in from the uk and my personal favorite round this is the 2021 britannia um they modified the design this year they put a little uh a few more security features on it i don't know if you can tell but the background is has got like waves that kind of move they're almost animated and they have really done a great job on this one um and again on the back get used to her queen mother all right so this is actually my favorite government issued bullying right here the uk britannia number two and probably by no surprise from canada the silver maple okay this is another four nine fine all right that means the silver is a little bit more pure than the 99.9 but again it's still an ounce of silver but this one has a security feature on it as well a little maple leaf there these are highly liquid these are almost as liquid as the eagles they're recognizable they come from a big mint they sell really well premiums are are actually decent on these you'll be able to get these not for not too much not too much over i think so number one and to nobody's surprise i'm quite sure from america the old american silver eagle everybody knows about this one um yeah this this one is the most recognized across the world for now for now i think if china has their way they'll have something to do with it but right now this is the most recognizable one ounce government issued silver round okay and we all know when we we know about this one everybody's got them in their collection uh they're just well recognized easily liquid so those are the top eight i want to give honorable mention to a couple um australia does a really good job on their bullying this is from the kookaburra series they're just really sharp these are just awesome so this is the australian kookaburra you can get these fairly reasonable i've seen these for about 35 so a few dollars over spot not the great not the greatest premium but not too bad uh another one from australia and i love the design on this this wasn't even on my hit list until um i saw it in the shop and i really liked the design of it um this is the uh lunar year of the ox i believe from australia this is 2021. uh the frosted design versus the almost proof design on it just really that's awesome that's a really you have to see it in person and one more this one might be my favorite ever this one is from the falkland islands uh i like anything with britannia on it period and this one is no exception i love this one so this is one crown from the falkland islands queen mother shocker get used to that face folks she's on everything but this is one of my favorites i really love the the uh the design on this one it's awesome so there you have it some extras and um those are my top those are my top eight moving on so let's talk about fractionals real quick basically on the screen before this when you saw a capture of a website selling um one tenth of an ounce gold eagles for 269 34 for that little piece of gold okay um if you add that up multiply that times 10 to get a full ounce you're going to come up with 2 693 and 40 cents uh spot price of gold today is around 1600 so guess what if you buy 10 of these little things you're gonna be up a thousand dollars over what you would have paid for a full ounce so you got to kind of decide whether that's something you want to do there are benefits to fractionals they're more affordable you can piece it together as you get extra money and build up to that ounce of gold that you're looking for the disadvantage is the high premiums obviously by the time everything's said and done and you've bought all those little increments to add up to an ounce you've spent a lot more than that gold is worth so same thing goes for silver uh for example that's a what is this a half ounce um silver is not too badly overpriced but it's it's still not worth it in the end you're gonna pay more for fractionals than you are the full ounce if cost is prohibiting you from buying more than fractional my advice to you would be to put that fractional money that you would have spent away until you can afford an ounce of whatever metal you're chasing it's just it's a waste of money to buy 10 fractionals to build up to an ounce um so again my recommendation is to save your money put it away each month each week each month whatever you're doing the money that you would have spent on a fractional just put it away and by the time you add up 10 payments you can buy a full ounce uh or more because you'd have to save a lot less to save up for an ounce than you would for 10 fractionals so just a piece of advice on that i don't care for fractionals um i think it's a good way if you want to limit your portfolio to some some other metals and and maybe diversify a little bit uh say you just want to throw some platinum in there you can buy an increment or a fraction uh you just want to throw a little bit of gold you don't want a full ounce but you just want to say you got some gold in your portfolio you buy a couple of one-tenths completely up to you i don't personally recommend them uh due to the value of them in the end you're going to pay a lot more than they're worth all right let's talk about junk silver real quick so what is it well many american coins prior to 1965 so 64 and below had 90 silver content so junk silver is kind of a harsh name but it's it's referring to uh coins that are valued more for their silver content than their numismatic value some advantages and you can break them up in a trade or barter situation the amount you need is in smaller amounts you don't have to give up a silver eagle for a loaf of bread and that's a harsh example but just a point i'm trying to make they're affordable premiums are fairly reasonable and legal face value they are and remain legal tender so they're always going to be worth their face value so how much is this stuff worth well easy formula for every dollar you have of junk silver and it could be any combination of quarters half dollars dimes whatever each dollar in your in any increment is worth 0.715 troy ounces of silver content so that's almost three quarters of an ounce of silver for each dollar of silver junk okay um you take a look at what we got here and and there's a lot of different forms of it these are the uh walking liberty half dollars um they're pretty worn out but there's still value in these okay and you can tell this is a dime so i think it's 64. yeah 64. it's there's a different color to these so if you get a roll of dimes and these are definitely going to pop out anything with silver content is going to be you won't see that copper middle so to speak when you look at a regular standard coin it's going to be straight up shiny silver so you'll be able to pick them up um so right here we've got four half dollars so there's two dollars if we multiply that times this 0.715 troy ounce formula we come up with 1.43 ounces of silver okay so almost a ounce and a half of silver and these and these four coins right here all right so there is value to having these in your portfolio you just got to make sure you can store them somewhere all right well that just about wraps it up guys i appreciate you checking in and checking out our first video here um i promise the next one is going to be a little bit more entertaining because we're going to see how we can identify some fake silver this one was a little long and a little bit dry at times i get it and it may seem basic to some of you who have been collecting silver and bullying for some time but this was to kind of help out uh beginners that have just gotten into it or are looking to get into it so again thank you for checking out the video and we'll see you next time [Music]

Channel: Silver & Gold Stack Attack!

Views: 136

Rating: 5 out of 5

Keywords: silver bullion, silver, canadian maples, american silver eagles, gold, Stacking silver

Id: Xy5Dg4FhkSE

Length: 23min 21sec (1401 seconds)

Published: Tue Mar 09 2021