3 to 5% of total investments in physical precious metals is prudent. Some of the more aggressive will go 10 to 20%. I'm bullish, and when the QE shakes out, this will jump. A great time to wade into the market with PM's sitting on 5 year lows. Never go all in or out of a position. Spread it out over time, the longer the better. You have insurance for a reason, a fire extinguisher, or a CCP. You don't necessarily want it, but you need it, and you have it just in case. The nice thing about PM's is that unless you need to cash in a large amount (>10K$) you can do it same day with little discount.
3 to 5% of total investments in physical precious metals is prudent. Some of the more aggressive will go 10 to 20%. I'm bullish, and when the QE shakes out, this will jump. A great time to wade into the market with PM's sitting on 5 year lows. Never go all in or out of a position. Spread it out over time, the longer the better. You have insurance for a reason, a fire extinguisher, or a CCP. You don't necessarily want it, but you need it, and you have it just in case. The nice thing about PM's is that unless you need to cash in a large amount (>10K$) you can do it same day with little discount.
Now that I've got my stack of silver, I am going to focus on stacking cash. My savings is NOT where I want it, and it has taken a back seat to getting this silver thing where I want it. I'm looking of doing one year straight of cash stacking.
A loaded 25 round Uzi magazine makes a wonderful paperweight.
Seriously. It is long enough to get the job done, but skinny enough to not be bulky. The 25 rounds of 9mm give it good heft.
An EMERGENCY fund of $1K should be sitting in a safe or sock drawer in cash, never to be touched (do this first). It is for emergencies, not a new car or a cable bill. Pay down debt, smallest to largest like "dave says". From there, 3 to 6 months expenses in a savings account. This is where the PM's kick in. Long term you can hedge inflation for money that will just sit there until eternity, unless you need it. When you need it, you have hedged inflation, and still have something physical if the computers don't work.
And silver takes a dip into $13 territory...
So, after 17 pages of talking about buying Silver; anyone who did has lost money?
That's about right
Yes and no.
If you bought silver at $20/ounce and are selling it now for $13 or $14 an ounce, you lost money.
If you bought silver at $20/ounce and are not selling it right now because of the price of silver, you haven't lost anything yet.
If you don't need to turn your silver into a liquid asset right now, you can sit on it for as long as you wish waiting for the price of silver to go back up so you can sell it at $25 or $30/ounce (or more, who knows what it will go up to?).
You can also sit on it waiting for the US dollar to collapse completely, at which point he who has the gold may be able to make the rules, but he who has the silver will be able to buy groceries without having to worry about if the merchant can make change you're willing to accept for that ounce of gold you just handed over for a loaf of bread and a gallon of milk...
This is exactly why fractional gold makes sense for some.
Also if a merchant is taking silver for payment, change for gold should be easy.
Think breaking a hundred at a restaurant.
