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How much gold/silver to buy?

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zermatter

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So I was wandering what percent of one's net worth should be in real money -- not in currency (pieces of paper which has become 20 percent worthless just this year)
 

CryptoCurt

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So I was wandering what percent of one's net worth should be in real money -- not in currency (pieces of paper which has become 20 percent worthless just this year)
That is a very broad question, here my 5 cents...
I have 2 months of my monthly living costs in cash. Just in case SHTF.

Everything above that i would invest as follows:
1/3 in real physical gold in your safe
1/3 in stocks and/or cryptocurrencies (depending on your risk profile)
1/3 in cash on my bank account to invest in case of big dips of the crypto/stock market

In general, i would keep only that amount in fiat currency that you need for living plus a buffer in case you quickly need to pay for urgent replacement / fixing. [Car needs to be fixed / washing machine breaks down / fill in the "desaster" and magnitude of choice)
Then think in long term storage (i.e. Gold or Real Estate) and short/midterm storage (cash/stocks etc.)

Hope that helps.
 

Johnny boy

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Trivial.


Grow a business and money problems disappear. 150k a year currently and when I think about anything related to money my first thought is "double my profit next year" and sure enough it's been a great wealth strategy...go figure!

Businesses are protected against inflation because inflation means price increases. A Mcdonalds hamburger in the future will cost $18 but they will have the same margins and subsequently a higher profit.

In a scenario where the S&P500 isn't worth anything, or real estate isn't worth anything, or there's an apocalypse, nobody will want gold anyways. They'll want ammo, soup cans and toilet paper. Gold is silly. I will never buy gold unless it's on my wrist or neck.
 

CryptoCurt

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Trivial.


Grow a business and money problems disappear. 150k a year currently and when I think about anything related to money my first thought is "double my profit next year" and sure enough it's been a great wealth strategy...go figure!

Businesses are protected against inflation because inflation means price increases. A Mcdonalds hamburger in the future will cost $18 but they will have the same margins and subsequently a higher profit.

In a scenario where the S&P500 isn't worth anything, or real estate isn't worth anything, or there's an apocalypse, nobody will want gold anyways. They'll want ammo, soup cans and toilet paper. Gold is silly. I will never buy gold unless it's on my wrist or neck.
Not answering the question but entertaining at least...
 

biggeemac

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Not answering the question but entertaining at least...
Hard to answer when everyones definition of "real" money is different. My definition might be....something that moves with inflation, AND, is difficult or impossible for the government to steal from me.

I am assuming that the OP wants to know how much of a tradable "currency" they should keep on hand. For me, I prefer to keep plenty of ANYTHING that I can use now, or during a SHTF moment. Guns, ammo, food, water, businesses, services I can provide, or anything else I can trade. Thats my "money". Cash is only good for the RIGHT NOW stuff. I have lots of cash on hand because I am building a house. But once its finished, I will hopefully be close to depleting my cash reserves and set up a heloc so I can have instant access to credit......maybe a heloc or something. That would be my "cash on hand". I also keep plenty of good debt to hedge against inflation.

I remember a buddy of mine who aspired to have a million dollars in his account. I didnt say anything, but I thought that was the dumbest thing I had ever heard.
 

Mikkel

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It depends on what you think will happen with the market.

Do you think the value of the USD will go up or down in relation to gold/silver or any asset for that matter?

Personally, I believe inflation will continue to erode the value of my savings so I keep one month's worth of cash on hand in my bank account to decrease the risk of inflation while still having enough cash on hand to do my everyday activities.
For me, the rest of my money goes into 3 different asset classes: Gold Mining/Physical Metals(whichever you prefer), foreign investments(I prefer emerging markets currently), and risky assets (currently I am in exploration companies and custodial plays).

How you divide your money is based on your risk tolerance and what you view each asset class in terms of risk.

Personally, I think gold mining and precious metals are quite safe, as the most I can see gold prices falling to is maybe $1250 as this was the previous low back in 2018(there has been a lot of inflation since then) which means at this price the worst you could do is lose 30%, the upside, in my opinion, is endless as I have no idea when they will stop printing money(40% of the US money supply has been created in the last 12-18 months).

So I actually believe gold mining and precious metals are not only the safest asset class, but also the most undervalued, and have the biggest potential gains in the future.

Foreign assets are in the same boat as gold mining, but I believe that foreign assets will take longer to rise in value so I plan to front-load most assets into gold mining, only to shift my portfolio over to foreign assets as the value of gold mining spikes(if I am correct).

Finally, risky assets are risky. Play at your own risk. Do your own research and be cautious, the naive get their lunch eaten.

My spread is like this:

Metals(whether it is mining or physical): 45%
Foreign Markets: 30%
Risky Assets: 25%

People may recognize that part of this rationale comes from Peter Schiff, and they would be correct. I have tweaked my portfolio a bit to make it my own, but if you like this strategy, then I highly suggest listening to him rather than taking my word for it.
 

gryfny

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I'm also thinking about this.

Currently my portfolio is not well balanced. 50% etf's and 50% crypto. I want to add metals, and maybe real estate. I'm thinking about putting 15% in gold or similar.
 

thechosen1

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Personally, I’d own a small amount of gold if you already have something of a net worth. This would just be your “prepper” value - if SHTF in your country, you can stuff gold in your pockets, go to another country, sell some and not be homeless.

My 2 cents anyway.

edit: gold investing and speculation is real too, but I don’t know enough about it.
 
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