I want to present an idea that has come to my mind for a way to preserve/protect and even hide wealth. I am not here to teach, however, I am here to learn. So please feel completely free to shoot holes in this and correct as you see fit based on your experience/expertise.
The first thing I have to mention about this plan is my mentality which I understand I will share with VERY FEW people in this forum. I believe in the intrinsic value of precious metals such as silver and gold. I believe they have always had inherent worth, and always will. On the contrary I believe that the U.S. fiat dollar has decreasing worth as evidenced by inflation and the fact that more can and will always be printed, where as silver is used industrially, and in such small quantities in things like electronics that for all intents and purposes, once these electronics are discarded, they are gone forever along with the silver inside.
Ok, so after that quick introduction to my mindset, here is my thought process. I wiped out my 401k and Roth IRA a few years ago and will never go back to those; no mutual funds, no stocks, no bonds (despite how much munis appeal to me after hearing about them from MJ). Let me mention a few reasons why I don't do anything that involves electrons on a computer screen and only focus on tangible assets that I can hold in my hands:
1. I already mentioned the intrinsic value vs. being blips on a computer screen that are somehow supposed to represent actual wealth.
2. I DO believe inflation will come and then *possibly* hyperinflation, and metals will be a hedge. I focus on silver.
3. In the event that #2 never happens, I feel like I will effectively be dollar-averaging in (I think that's what they call it?), ie. silver is at roughly $32 per ounce, but if I am buying from now and for the next 40-ish years of my life (I'm 29) I might be at $32, then $40, then $50, then $30, then $15, then $40 and so on and on ad, and over time I think it will rise. This holds more true if at least it is mostly going up over the next 40 years, which I think it will both again because of inflation and because it is a FINITE precious resource, there is only so much just like there is only so much oil.
4. I was involved in a thread recently where we talked about if you should have your car under your name or a business name, and all that kind of stuff. My point here is hiding wealth. If you keep physical silver stashed in a few different secure places, ie. safes in home, office, bank deposit, Nevada desert, whatever, you will look much more POOR on paper than you really are. I don't have that kind of ego. I would LOVE to always look way more poor on paper than I really am. I mean I would REALLY love that. Not being a target for people or the government. Take your wages/earnings and only keeping a certain amount in the checking account, and stuff like that.
I know I mentioned hyperinflation, but I want to emphasize that I AM NOT talking right now about all the "dollar will collapse yada yada" stuff here that is gaining popularity on the internet, I don't want a discussion on that. I want to know what people think of my idea aside from that issue. Can it be a good game plan in a world where, let's say inflation continues for the next 40 years at the rate it has over the last 40 years, or something along those lines. Are the other points at all valid?
The first thing I have to mention about this plan is my mentality which I understand I will share with VERY FEW people in this forum. I believe in the intrinsic value of precious metals such as silver and gold. I believe they have always had inherent worth, and always will. On the contrary I believe that the U.S. fiat dollar has decreasing worth as evidenced by inflation and the fact that more can and will always be printed, where as silver is used industrially, and in such small quantities in things like electronics that for all intents and purposes, once these electronics are discarded, they are gone forever along with the silver inside.
Ok, so after that quick introduction to my mindset, here is my thought process. I wiped out my 401k and Roth IRA a few years ago and will never go back to those; no mutual funds, no stocks, no bonds (despite how much munis appeal to me after hearing about them from MJ). Let me mention a few reasons why I don't do anything that involves electrons on a computer screen and only focus on tangible assets that I can hold in my hands:
1. I already mentioned the intrinsic value vs. being blips on a computer screen that are somehow supposed to represent actual wealth.
2. I DO believe inflation will come and then *possibly* hyperinflation, and metals will be a hedge. I focus on silver.
3. In the event that #2 never happens, I feel like I will effectively be dollar-averaging in (I think that's what they call it?), ie. silver is at roughly $32 per ounce, but if I am buying from now and for the next 40-ish years of my life (I'm 29) I might be at $32, then $40, then $50, then $30, then $15, then $40 and so on and on ad, and over time I think it will rise. This holds more true if at least it is mostly going up over the next 40 years, which I think it will both again because of inflation and because it is a FINITE precious resource, there is only so much just like there is only so much oil.
4. I was involved in a thread recently where we talked about if you should have your car under your name or a business name, and all that kind of stuff. My point here is hiding wealth. If you keep physical silver stashed in a few different secure places, ie. safes in home, office, bank deposit, Nevada desert, whatever, you will look much more POOR on paper than you really are. I don't have that kind of ego. I would LOVE to always look way more poor on paper than I really am. I mean I would REALLY love that. Not being a target for people or the government. Take your wages/earnings and only keeping a certain amount in the checking account, and stuff like that.
I know I mentioned hyperinflation, but I want to emphasize that I AM NOT talking right now about all the "dollar will collapse yada yada" stuff here that is gaining popularity on the internet, I don't want a discussion on that. I want to know what people think of my idea aside from that issue. Can it be a good game plan in a world where, let's say inflation continues for the next 40 years at the rate it has over the last 40 years, or something along those lines. Are the other points at all valid?
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