If you asked a hundred investors, how do you plan out your investments, you would get a hundred different answers. All of us have different strategies based around varying understanding of the nature of investments, the market, experiences, influences, available funds, market-knowledge and success or failure in the past; There'd probably be one hundred different outcomes too.
I have my own strategies, most of which will remain private between my wife and trusted advisors as they can be quite complex, and besides, who wants to put all their personal information out on the interwebs anyway. However with Silver I'm happy to talk about it as my strategy is quite simple.
In 2018 I spent 6% of my net income on silver. In 2019 it was 7% and in 2020 the goal is 8%. I won't say the actual figure as you don't need to know what I earn, however this target is broken down into the 12 months of the year and in each month I simply purchase that amount in silver, or gold sometimes. It's a simple concept.
In addition to this set-strategy I work to reduce excess [excessive] non-essential spending and the saved funds get spent on silver also...In 2019 this added an additional 0.5% of my annual net income in silver to my hoard. Pretty cool huh? Just go without some stuff and there's more available to buy silver. So I guess you could say that curbing my spending makes me spend more - On those things that appreciate in value, not depreciate in value.
I track my goals regularly, including my silver purchasing. In this way I am able to know if I will hit my end-target, when to pull back or push on...You will also see that I add one percent each year to my silver-goal. This aligns with greater income each year and better saving techniques. Having a spreadsheeted-budget means we can see what expenses rise or fall and allows us to adjust and allocate savings elsewhere. It's a simply thing, but one which works very effectively.
I've managed to stack a small amount of silver away over the last two years (2018/2019) by doing exactly what you see above. In the two preceding years I stacked a little too, but it was random and so the amount stacked was much less over the year; This way though, I know what to spend and when, and what the result is going to be come the end of the year - It's more strategic and controlled. I can also work around the fluctuating market a little better too.
I invest across multiple investment markets preferring to split my liability however I have to say that stacking silver is one of the more enjoyable ones as I get to touch and feel my investment. You can see one of my bars here and yes, you can be assured that it has been touched and felt more than once.
Do any of you have similar strategies or do you simply buy what you can when you can? I'm interested to hear from the stackers, and investors in general, about what works for them.
Design and create your ideal life, don't live it by default
Discord: @galenkp#9209 🇦🇺
Average investor: fling hundreds of money at shit and hope that some of it sticks and turns into more money.
What do you do with the silver when you want to sell? Just wondering because it will be Heavy? :0)
It's easy to sell silver. I sell pieces I don't want anymore, there are always buyers. And FOMO will only bring more buyers.
Cool. I had this idea of your sitting on a giant pile of bullion having to pay massive transport costs to sell;
I haven't sold a lot but on occasions I have. I have a silver guy and he either collects it from me or I drop it. (As good as good Australia). They are based here in Adelaide. It's a simple process really.
I've sold a few kilos and hold the money to re-buybwhen the price slips backwards. Adds a little extra here and there. If I needed some quick money I'd be able to off-load a little and have instant cash, and more than the initial silver purchase cost generally.
Pretty sound indeed!
Makes sense. I like having it around and in these financial times when fiat has an uncertain future it feels good to have something with real value around.
Defo. It's way better than crypto because your actually have it. Physically in the building!
Yep, that's my thought. I like crypto, but I can't shake the feeling it's just magic internet money. Nothing like metal in the hand...
Nice kilo. Never asked myself that question , but just did some general math. I spend about 7% of my gross income on shiny. I usually buy with extra in my paychecks. My stop buy price for silver is $20, so getting pretty close.
I like the kilos, they feel nice, stack well in my safe and are easily disposed of if/when required. Interesting that you're spending a percentage of your gross income and not net...That makes the amount you buy even greater. I work the percentage off the net rather than gross however that may vary for others I guess. I'm paid allowances in my gross (vehicle, travel etc.) So they go towards paying for other things, like my vehicle's, not silver.
Thanks for responding and great to see how others stack.
That is a great strategy. For the last 4 years now I have been trying to put 5 percent of my gross salary into Silver. Great minds think alike;)
Keep up the good work
Hey mate, seemingly they do! I spread my investments around but picking up silver is enjoyable and gives me a more tangible return that I can see immediately. Satisfying. 🙂
Good strategy and goals! Good luck in 2020, and have fun stacking!
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Thank you.
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Thank you
We have been buying Silver, antique silver. We have quite a few bits, we are now selling them as we are now trying to downsize.
You mean like tableware? I have some of that too, stuff my mum left to the family. Takes up a lot of room.
Erm not quite,
Silver sugar sifters
Silvver cruet sets
Silver lion
Silver pens
Silver butter plates
Silver Silver salt
I can go on and on
Ah ok...Sounds like tableware. (Stuff designed to go on a table and be used...Like a cruet set) I prefer coins and bullion.
We have that too. We went through a stage of saving antiques, not into it anymore.
Yeah, my mum did...We have a lot hanging around. I respect it though as most has been in my family over 2-3 generations.
Great job sir galenkp, very wise. Where do you buy it, or do you have many places or sources? Can you buy it straight from the mint at Perth?
I'm registered at the Perth Mint yes. Mostly I get it from a place called As Good as Gold Australia based here in Adelaide. My metals guy delivers it to my office for me. https://www.asgoodasgoldaus.com.au/
Holy smokes! Can't look at that sight without drooling. Office delivery. . . can't beat that, my gosh. I wish I had a metals guy. I will someday.
Haha, yeah I was surprised the guy was happy to deliver to my office, at no charge too. He seems a good guy, fairly young, but knowledgeable and pretty friendly. A good guy. I have him on speed-dial.
Speed dial! lol..well he's going to be very successful.
Haha, yeah I reckon.