With the recent “Silver Squeeze” that was brought about by members of a subforum on Reddit called BetOnWallStreet, and the mainstream news’ take causing a feeding frenzy, there has all of a sudden been more of an interest in the silver price.
Whereas many polls show 80 – 90% of those surveyed believe precious metals are a good idea to own, only 2% of the population actually goes bull and hold physical metals in his/her her household or in a secure storage location.
Although the mainstream interest may be short lived, many are now considering silver that never did before. Newbies that have been “bitten by the bug,” and/or suddenly stricken with FOMO.
Often these silver novices don’t know where to begin, and subsequently go to Google for answers. For this reason, we’re posting our first time-centric article riding on the coattails of the media commentary.
After building 1000s of evergreen info pages for this precious metals publication over the last three years as an educational foundation for those that like to read research, and learn, we’re now writing something more timely.
We’ve been studying the precious metals industry for the last ten years, even working for one of the largest online retailers at one time. Thus, we’re here to guide your way and give you our two cents on how to start with silver. Thus, we’ll start simple.
What is Silver Stacking?
Silver stacking, unlike coin collecting or numismatics, is all about the bullion. Meaning, the goal is to get the most precious metal for your money. The coins, bars, or rounds sought are often at least 99.9% pure silver.
Forget speculation, rarity, coinage limits, and being overly concerned with designs. It’s not about show and tell – it’s about saving your tail if or when you know what hits the fan.
The possible dystopian world of the future, no matter who is the President or what party is in power, where US dollars are worthless is the silver stacker’s worldview.
Possibly less dramatic, consider the fact that the current US National Debt is nearing $28 trillion, and the fact that Social Security is supposed to be dried up in less than 15 years. Hyperinflation is a very real scenario. All that being said, here are some principles for beginner silver stackers.
7 Silver Stacking Principles
Dollar Cost Average – Buy silver bullion when you get paid, no matter if the price is up or down. This is paying yourself first and dollar cost averaging. Buy even more on the dips on top of your regular cycle, if you can, but keep the cycle. The key is consistency.
Pay Attention to Premiums – Buy silver bullion for the least premium, which is the amount the retailer charges above spot, possible. Know the current silver spot price and do the math for what percentage over spot the retailer is charging. Shop around before making your final decision.
Bulk Up – Buy silver bullion in bulk if you can afford it – typically ten or more of the same ounce size pieces, whether it’s one ounce pieces or 100 ounce bars, at once will earn you a discount.
Don’t Be Swayed by Packaging – Don’t buy slabbed, graded, and “first strike” coins. Brilliant uncirculated (BU) bullion silver in a plastic sleeve is fine, but don’t overpay. You don’t even need to worry about BU if you’re a true stacker.
Stay Local – Consult your local coin shop (LCS) which can be a great supplier and offer deals that are less than online retailers in their bargain bin.
Go Big on Bullion Bars – Consider 100 ounce silver bars as an option for your silver stack. They are easy to liquidate if needed, and take up less room when you literally stack them. Three bars make a pyramid!
Secure the Standard – Procure a Monster Box (500 one ounce pieces) of American Silver Eagles (ASEs) for one of the best bangs for your bullion buck. These bullion pieces complete with a government-guaranteed face value (which still means something as of now).
Happy stacking!
- Phil Harmonic
Originally posted on: https://www.goldandsilver.org/principles-for-silver-stacking/
-Phil Harmonic