Most of us here consider cryptos "the asset" to be in but there are a few stackers here as well. The reason we all got into this is an opportunity to preserve and some to grow their wealth. We are all hopping for that explosion in price of all 3 (if you own all 3). But often people are unprepared as what to do then and what may be "the right price" for one of us is not for another.
For me personally this is my plan. I researched the price of a median house price when silver/gold was doing really good such as early 1980s. From this research i gathered it takes about 1000 oz of silver or 100 oz of gold to get that house. I also figure things are much worse today in terms of the economy so it might even be much less especially considering the house price bubble . Here in Australia its one of the worst in the world (Asutralia is one of the top countries that has the most expensive housing compared to income).
So once that target is reached the goal is to sell and pay off the mortgage. Remainder (if any left ) + cryptos use them to snap up great bargains for a few holidays here and there.
So my goal is not to wait for a specific $ price but rather compare value of metals to median house price. Reason being for this is silver might be $500 in other words increase about 20 times (in AUD terms) but the house price also increases about 20 times, you really haven't gained anything except preserved your wealth.
Whats your plan?
STEEMSILVERGOLD
Having a target, like specific ratio of house price to silver, makes sense. Everything is a cycle with highs and lows; cryptos, silver, houses. So a ratio target removes the emotional trap of being greedy and staying too long
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exactly my thoughts too
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Clever. I like that you have an established baseline to work off.
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Thank you, cant leave it to think about it once the price explodes
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Great blog.
Yes I thought about this a lot and have a similar strategy. I think that it's likely to only take 500oz silver as I think the AU:AG ratio will close in.
However, I will sell my mining and cryptos first and then (and only then) would I consider selling physcial metals
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Cool about what about anything leftover ? A holiday/ a boat/ car? I believe too the ratio will get close maybe even single digits. Cliff High talks about equalizing with the gold. In 1980s there wasnt a bubble in everything else like there is today so when gold/silver explode everything in the bubble will pop making it even cheaper
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Sorry I didn't make my intentions clear. Firstly you made a valid point at the end of your blog that potentially there could be a situation where prices could go crazy across the board and so one could be in a situation where no net benefit.
However, I'm going to assume that things work out in our favour. As an absolute bare minimum I'd want it to pay off my mortgage. Depending on what was left, I'd likely reinvest in something else. I'd quite like some land in the sticks which I could use as a 'country retreat' - put a little cabin on it and spend weekends away from the masses.
If I still had a bit over I'd like to take my wife on a river cruise through Europe, hitting some of the cities along the way.
or I could scrap all of the above and immigrate to Aus (based in UK)!!!
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Sounds like a good idea, if you head this way stop by Brisbane for a drink
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Deal! Of course, I need to get over my fear of flying first!!!
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Housing prices are a good measure. For those in the US I think the DOW/Gold ratio may be useful also. The AU:AG ratio is important to watch as well. I believe on the mining side the natural ratio out of the ground right now is in the 9-10:1 range. Of course the worlds mined gold still exists and is primarily monetary and the above ground silver left in the world is rare as most of it is used up in industry. I do think the price of gold is a natural cap for silver. If the AU:AG ratio ever hit 1:1 in a panic type situation that is, as gold can perform most of the industrial functions of silver if silver was to get that expensive.
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The people saying 1:1 say the silver is spent, technically its still here but we throw it out such X-ray scans, electronic junk, i think as silver gets more valuable people will realise that we need better techniques that are cheap to recycle it and thats why i dont see it getting there except temporarily ; if this were to happen id trade all my silver same day for gold.
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Agreed it would be temporary. Even with significant increases in price I still don't see recycling being economically viable as silver's use is in such miniscule quantities throughout billions of devices.
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When gold and silver is priced at their true value, then most fiat currencies will not be relevant any more. Pricing gold and silver in terms of goods and services is the way to go, when trying to find out whether it is over or undervalued. So, I like your strategy.
Join Steemit's precious metals community: https://steemit.com/steemsilvergold/@hgmsilvergold/wow-steemit-officially-has-a-gold-and-silver-community-join-here
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So true, I agree with commentators like Greg Mannarino @marketreport saying that the price of everything is distorted due to Fed meddling so if we agree with that, than us comparing ratios of AU to AG or AU to oil or other ratios to historical ones when there was less manipulation is the only way to predict such things
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