Storm clouds and sliver linings

in LeoFinance2 months ago

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Let our advance worrying become advance thinking and planning.

- Winston Churchill -



I keep a spreadsheet of my gold and silver purchases with cost per ounce or kilogram, total purchase price amount and the place and date of purchase plus a couple of other metrics which all auto-sums giving me a running tally of what I hold at any given time.

I have a formula in the spreadsheet that averages out the purchase price of gold and silver and I can insert the current spot price to get a reading of (roughly) the percentage of value-increase I have gained. I could do it accurately of course, per purchase, but I don't see much point considering I'm not selling. It's a basic spreadsheet but serves as a good record and it feels good to see the numbers increase.

Back a while I was purchasing regularly, spending an annual metal budget I had set aside for silver and gold, and my spreadsheet was ticking along nicely. That changed due to external forces in the way of the pandemic, and I fell out of the habit of purchasing regularly in place of a more sporadic, unfocused, approach that hasn't worked at all.

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Last week I took the time to review that spreadsheet and compare my last six years of metal-stacking which showed me how lacklustre the last couple of years has been as far as acquisition and how far behind my plan I had allowed myself to become. I didn't feel happy and storm clouds gathered...but, there was a silver lining to that storm cloud.

The silver lining

I know exactly why my it happened, the decline in metal-stacking, none of which I'm inclined to write in this post, but it still came as somewhat as a shock and made me feel a little quite uncomfortable considering how much effort and focus I've had on my plan for a long time. I'd not go as far as saying I was worried, it's only one element of my investment plan after all, however it shook me up enough to feel uncomfortable and disappointed in myself...which led to storm clouds and the silver lining in the way of an attitude readjustment and some new plans.

I work to a financial plan, a budget, and whilst I don't know where every cent goes I know what most of my outgoings are, where they go and when and how much, and can project (reasonably accurately) ahead of time what my annual cost of living is, what I have saved in fiat, or invested across the various investment-elements I prefer. It allows me to better determine my as-is position which helps me decide what to spend on now and in the future, and what not to spend on now for the future. Essentially it's a framework upon which I construct my present and future, and following it means I worry less because I think and plan for now and the future concurrently.

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I'll admit that it's not a foolproof plan, clearly this metals-purchase situation demonstrates that, but nothing is ever perfect. What's important is that the mechanisms I have in place to track and monitor the process trigger appropriate responses, like in this case with the gold and silver.

Yesterday, I reviewed my budget, determined what I could or should safely spend on metals and implemented a new system to remind me to do so.

It'll mean I have to scale back in another area, something I don't see as essential as future financial planning, as I will increase my previous metals-spend to account for the shortfall over the last year or so to bring me back to where I should be right now...But I'm ok with that, my present situation won't be too badly effected, but for sure my future will be...in a good way


Do you have a financial budget, track your incoming and outgoing funds, work on investment strategies and balancing your present and future life? I know some say that, they don't plan ahead because they might not make it there which is one way to go I guess; my answer is, but what if you do and haven't put any plans in place? It's all personal choice though and it's the individual that has to live with the decisions they make. Feel free to comment either way below if you'd like.


Design and create your ideal life, don't live it by default - Tomorrow isn't promised so be humble and kind

All images in this post were taken by, and are owned by, me.

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So very elusive and mysterious haha

We definitely track our investments as well, also on a spreadsheet. My wife loves Excel and creating spreadsheet so she made one or found one that we use.

For metal do you prefer to invest in coins, boullion certificates or (not sure what they are called) plates? Referring to those small rectangle bars of precious metal. (If that's a personal question you obviously don't have to answer I'm just wondering if there are strategies when it comes to precious metals.

Hey mate, I'm happy to answer.

With silver I work on a per ounce cost generally trying to maximise the value. I have one kilogram bars which make the best sense because one gets a little extra value but also one, two and ten ounce coins as well. The ten ounce coins are awesome by the way; big and chunky.

Having said that, I like to have diversity because in the advent of needing to offload some quickly it may work out better to have some smaller weights. I have some special coins too, collector ones, but often one can buy three-four normal one ounce coins for the price of a one ounce novelty coin so I try not to waste money on the novelty ones. (I say try...Sometimes I try and fail. 😉)

With gold I generally work on ounce and half ounce weights and there's a mix of coins and carded bars.

That's interesting. I never got into precious metals really but I can see the value in them. The coins would be cool. That's would be a neat collection to have. It's nice to get some aesthetic enjoyment out of an investment as well.

There's something very satisfying about the clinking of precious metal coins...It makes me feel like a pirate. I don't mean one of those modern day assholes though, I mean the swashbuckling kind from yesteryear with a parrot on the shoulder.

Haha yeah. I can see that lol 😆

Financial planning is very key and making budgets in regard to know how finances are spent however sometimes its hard to keep up. Thank you for this post.

I agree it can be difficult to track financial matters which is why I took the time to simplify my process a while ago so that it's easier. I don't have to refer to it other than to review and amend the plan every six months or so and I have a good idea what I can spend, or shouldn't spend, most of the time. I'm not one who needs to spend much to be honest, I care for the things I have and don't feel the need to get new things for the sake of having new things. That helps.

Thanks for your comment.

Numbers and spreadsheets kind of make me cry XD

I have an app for budgeting and there's a set amount each month that goes into hive and savings and that's pretty much it for me as anything further also makes me cry x_x

kind of pity I would like to collect metal because it's pretty but lacking a safe place to keep it

It's good that you've got a strategy, so many do not and that's generally not going to end well. Also, the clicking of silver coins...It's hypnotic. 😊

I went way too long without a strategy because life is too short to care about useless things like that and the only thing my plans have ever done up to that point is fail spectacularly and I had better things to do, because 20yo me was actually that stupid.

That clicking of coins is precisely why I want the metal. But I would just be buying the pretty little figures and coins and maybe nuggets because they're pretty rather than anything that might be more useful or valuable x_x

I know people who don't have any financial plans or think about the future and that's their prerogative. It's when time moves forward and they have little to nothing to sustain themselves that their choices will come full circle. If they think there'll be a government pension in the future they're wrong, the same if they think the government pension is enough anyway. Some like instant gratification and care nothing for the future. I think it's not a smart way to go.

It's good to hear you have something in place, and if you added a few silver coins here and there I think you could become a pirate in no time! Do you have a parrot?

No but I do have a little gold rooster that my parents bought for me (that's one thing that I wouldn't sell, don't know about the kids when they grow up XD), close enough? :D

Hurrah for golden roosters...Everybody should have one, but alas, not all do. I'm golden roosterless to be honest with you. I need one now...(G-dog heads over to Amazon)

close enough?

Indeed.

Will there be a post if you get one? :D

You know it! 😂