I've always applied a think and plan strategy in life; whether it's for health, professional, recreational, relationships or financial planning reasons, I've thought-forward and put steps in place to have a better, more enjoyable or secure, future. There's been speed bumps, like when I was eighteen and ran up my first VISA card, but I learned from it and other aspects that didn't go to plan, then made adjustments. Now I'm a little older I have the ability to look at my current position and the years that led to it, and be grateful for my think and plan strategy.
I'm often asked about these things, strategic life-planning, and whilst I don't offer advice, I've shared some of my success and failures with others, and had some great conversations that have helped me in turn.
One such chat was with a chap I used to work with in my late twenties, a reasonably good friend, and someone I would like to see thrive.
We met when he was just nineteen and beginning a new career at a time that I was drawing one to a close but we worked together for two years until I moved on to different things. Over the years, we stayed in touch and I became a sounding board for many of his thoughts and ideas including investment and finances and a couple years ago he began to stack silver, the same as I do.
I won't go right into it all, but I told him my strategy with stacking was more about an alternative place to hold cash and make gains over time rather than fast money and I also like having that reserve of metals in the safe as it just feels good. He liked the sound of it and went away and started buying silver almost straight away.
Recently I caught up with him on the phone, he lives interstate, and we ended up doing a video chat as he wanted to show me his silver and I noticed he'd been purchasing specialty coins rather than straight up bullion or plain old every-day silver coins. An alarm bell went off and I carefully suggested he speak to a friend of mine who would help him understand what he had actually bought and the potential value it may have moving forward. He agreed.
This week that other friend of mine, an experienced stamp and coin collector, called me and gave me the bad news.
It seems my young buddy has been paying far too much for specialty silver coins in the mistaken belief they would increase dramatically; his stack is worth well less than he's actually invested because of it.
He has a few coins which are worth a little more than silver value, but most of what he thought would gain in value through it's collectable value is not going to do so. For some he's paid two and three times over spot for and that's a huge loss to wear. Naturally the man was devastated and disheartened that he simply paid too much.
The good thing is he's now connected with my other friend, the collector, and will do better from here. He's also determined to make up for the potential lack of growth by making wise purchasing decisions and trading a little rather than holding as he's been doing. It'll be a long road, but he's determined which is half the battle.
I am not trying to say that investing in rare coins is a bad thing as many do very well from it; but it's not for everyone, and a great deal of knowledge is required to ensure one is buying the right thing. I don't know much about it so stay well clear of it although I've got a few because on occasions I've seen something that holds emotional value to me. Generally I buy bullion and straight silver coins at spot price though as that's the best value for my money and it fits my strategy.
We all have different investment plans based on location, opportunity and general needs and I'm not here to call someone else's plan right or wrong. I guess though, that the think and plan strategy is something I believe in because not planning often has a very predictable, and often disappointing, result.
I believe we must seek knowledge and understanding from people who have been there and done that and probably learned valuable lessons along the way. I've let my mate down a little by putting him upon a path and not guiding him much further however I remember telling him to stay away from fancy rare coins and buy in bulk where possible. I wish he listened, but he's on the righteous path now I think, and he has time to get back in front.
What's been your experiences in respect of future financial planning? Has it been smooth sailing or has there been rough seas to navigate? With your investment strategies, are you on track for your goals or have you gone off on a tangent, made errors and taken some losses? Feel free to tell me below.
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I am an outsider looking in considering staking silver and gold coins. What is making me hesitant is the price difference between cost of gold / silver versus price of the coin minted. To me it just seems the premium is way too high and for some reason it has been like this all year. I maybe wrong but don’t think right now paying the higher premiums are worth it.
In addition when you talk about collector coins and speciality coins it’s another element to learn about when investing in precious metals. Thanks !WINE !LOL
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The spot versus sale price is always a bit of a gap, they do have to make money on it you know. The thing I would steer clear far from is silver certificates or some other shit. Not in your physical possession ain’t shit. Kinda like not your keys not your crypto.
I never tell a person when to buy or when not to as everyone has a different situation; but I've heard many people say, I wish I bought back then, all the time.
Waiting for the price to come down may make your investment look a little better later, but what if it doesn't come down?
I guess you'll need to keep researching and make a decision to buy based on your findings.
I am relatively new to stacking gold and silver.... umm, about 7 years and a few months... not that long. I've just been buying ordinary silver coins and ordinary gold coins... those readily available in the market. I am not a numismatist nor pretend to be one. I buy every month, month after month... years now hahaha... and I have not sold anything yet. I look at my stack (and some I have put away since 2018) and I say, dang... did I do this???
I buy from about 6 online dealers, do my own accounting, but let me share one from a specific dealer:
I wish all dealers would do the same, then I don't have to do it on my own, hahaha. But all tell the same story- I guess I made good just by buying coins- which I do not expect. I merely use silver and gold as a store of wealth.
It's great to hear you have a strategy as many do not which I don't actually understand to be honest.
I think our strategy is the same, metals to store wealth and if there's som growth over time then all the better right? Often, success comes through doing the right things repeatedly and I think that could be said for stacking.
Thanks for your comment, it's much appreciated.
This is why it is necessary to do continual research and ensure that one is up to date on the happenings in the field (no matter what) that one is involved in. I mean, he had been told about 'em fancy coins, but he still went on to deal with them without sufficient knowledge.
I am not exactly sure if you meant actual coins or some representation of some asset, but I do understand the necessity of inquiring about some investments well enough so one can minimize mistakes and losses.
It is a good thing he now realizes how off-track he has been early enough for him to make up for his mistakes and still thrive.
Investing is important for ones future and doing it well is critical which is why getting the right information from trusted sources is so valuable. It can make or break a portfolio. Of course, many other factors come into play, but starting off on the right path is advisable.
It is a good thing I am learning all these things now that I am quite a young chap. I sure will make mistakes, but I think having this kind of insight will sure help me.
Good day, sir.
We all make mistakes, even old dinosaurs like me who have been around the block a few times; the trick is to learn from them.
I think my financial planning is largely on track, but it was not smooth sailing for sure. Had to get used to volatility as with all investments, and the plunge in markets in early 2020 was really scary to be honest. Looking back, it was a good stress test and I had many good takeaways from that episode, be in terms of managing risks, managing emotions, etc. I guess it's like what they say, what doesn't kill you make you stronger.
It's usually through difficult times that we learn the most.
Wops bit unfortunate about the dubious decision but that's one way to learn right x_x
It's a learning experience for sure. I guess the good thing is he has the ability to recover to some degree. We all make mistakes but it's worse if we don't learn from it.
I think it just comes home to the same prerequisite that exists in any market or investment avenue, and that is extensive research... can't play the game without it. Consider if he mentioned his plan to you initially and you hooked him up with your other friend prior to making any moves.
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I agree completely, knowledge and information is power and from an investment perspective that power gives a person to make better and more informed decisions; it may not mitigate the risk completely, but it may go some way towards minimising the risk.
Shame the poor guy, he must have been gutted. Many people probably think that way about coins because it's always been said that collectible coins get big bucks but I have never known anyone to actually turn a great profit from it.
Don't get me started on financial planning.
It all sounds good and easy in theory, and I'm sure there's a reality TV show about it that leads people to believe they're an overnight expert but, not.
I don't watch TV but I'm sure you're right about the reality show, they seem to make them about anything and everything these days.
You have worked out how to do it well, so if I need some financial guidance I might give you a call.
Like you I’m more into the bullion aspect of it all. I have coins with logos and stuff on them but that was only because it was on sale lol. Otherwise I buy whatever is the cheapest and .999 silver! I’m hoping to get back into buying it, the prices I was getting at were far better than they are now. They are getting back to the range I was at previously but I think 20$ an ounce was expensive in my taste.
Yep, that's the ticket aid say. But the good stuff at the cheapest price and don't worry too much about the pretty coins. Methinks you be a pirate, like me be also. 😊
I've never had any #financial goals in my life. I didn't plan but I regret it. For the last 3 months, I have plan. I start saving #money. That makes me happy.
I know many like you, people who have not previously planned forward; the good thing is you decided to do it and are on track. Well done.
Don't beat yourself up too much.
Sometimes as a trader/investor you need to feel the pain of financial loss so you don't make that same mistake again.
Reach that crossroads and make a concious decision to go down one path because they other... well hurts.
As long as he's on the right path going forward, it will be a tiny blip in the long term road.
Which is what silver stacking is all about anyway!
PS. Come and publish these via leofinance.io? :)
We would love to have the canonicals and I'm sure you'd love to receive 100% of your LEO rewards :)
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This is what I told him and he's ok with it. He'd rather know now than later and I think he'll make up for it.
I keep forgetting to do that, but I guess I don't post leo stuff much at all.