Advice for a new stacker

chris010
By chris010 on Fri, Jul 8, 2016 - 6:52am

Hi All, I'm new around here and have recently begun my focus on preserving a future for myself and my community. I am based in Australia and have a question about liquidity of the various different types of gold and silver coins available to purchase. Namely, does anyone foresee any differences between which country the coin has been minted from? E.g. Australian Perth Mint vs Canadian Maple leaf or US Silver Eagles?

My general strategy is to allocate a % of my portfolio with gold and silver as a store of value with the future intention of transferring this value into productivity assets such as farmland. Secondary to that as a doomsday scenario mitigation for use in bartering. Thus the reason for coins > bullion. Appreciate any and all comments =)

Chris

 

 

6 Comments

John P Prosperity's picture
John P Prosperity
Status: Member (Offline)
Joined: Apr 13 2016
Posts: 2
Welcome Chris

I joined this group a couple of months ago and have been tracking the discussions since then.  This might be a good time for the regulars to help out the new stackers like us with a basic primer on precious metals investing.  For instance, maybe they could define some of those TLA's (three letter acronyms) they throw around here :-).  Anyway, welcome!

John

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5752
Advice for stackers

Chris, John and anyone else new to the process of stacking (i.e. preserving wealth off-line, as it were), have you managed to find this guide to buying Gold and Silver on the site yet?

If not, it's a good place to start.

To answer your question directly, any and all national mint products (eagles, leafs or roos) are advised as a core part of one's holdings.   

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 428
PM Stockpiling

Some thoughts

1. if you're obtaining PMs for bartering, Silver would probably be the best option over gold. Its not as if you can ask for change back at barter-town. that said I do recall some mint was selling gold ounces in break-away squares so it can be subdivided into smaller quantities. But I cannot recall the producer.

2. I would be concerned about gov't confiscation and making private PM ownership illegal. When there is a currency crisis, Gov't will likely need PMs, and the easier method it to take if from its citizens, as the USA did in the 1930s under FDR. I believe most countries now mandate that PM sales must be documented and reported (it now a requirement in the USA). 

3. Before stockpiling PMs you should have your basic needs met: Food, Water,Shelter and Energy. Do you have sufficient land and resources to grow your own food? Do you own property outside of urban regions that will likely fall into violence as an economic crisis unfolds? Do you have access to clean potable water that isn't dependent on municipal infrastructure? If you have a well, do you have the means to pump water without grid power. Do you have energy resources for cooking, heating, refrigeration, etc? Do you have any stockpiles of food that you an draw upon in an emergency. Do you have tools you need to repair and maintain the necessary equipment (air compressor, hand tools, welding equipment, power tools, Machine tools). Do you own any agraculture equipment you need to grow your food (perhaps a tractor, Tiller, chainsaw, portable generator, etc). Do you have a stockpile of fuel needed to operate the equipment you have. Do you replacement parts and spare consumables (ie bar-oil, oil filters, grease, etc)? Do you have the means to secure your equipment and resources from theft, or at least have the means to detect intruders?

From the research I've done, Its very unlikely that PMs provide a means to acquire food and energy resources you will need to survive. Food and water in the industrialed world is 100% dependent on infrastructure and is set up as a JIT (Just in Time) with no margin for infrastructure loss beyond just a few days. If there is a currency failure, Food and fuel distribution will come to a complete standstill in a matter of a couple of weeks. No amount of PMs is going to bring you food and energy without a functioning infrastructure system. If you don't have the basic resources, you lilkely find it extremely difficult to survive. You could try going nomadic, but the odds favor your PMs will get stolen or you end up getting murdered. and no matter were you go, its not likely to be any better, as millions of people will also be fleeing trying to find the resources they need to survive.

Consider that a currency crisis will lead to a resource crisis, and Oil & gas imports vanish. Without fuel, farmers won't be able to plow and harvest crops, truck drivers won't be able to transport food to the population. The Power grid will be destabilized as it becomes difficult to produce the power without fuel for the workers to get to their job locations, repair & maintain equipment. haul coal to coal power plants. Then there will be a problem with copper theft, as people turn to cannibalize infrastructure to try to put food on the table. 

A real life situation is occuring in Venzuela as the the infrastructure is on the verge of complete collapse. Those that had money have long fled the country. Hundreds of people every day are getting murdered and the majority of the people are starving as they can't obtain enough food to meet their daily needs. Using PMs in VZ for barter would be a death sentence since theives and murderers would kill you on the spot if they discovered you have PMs or anything of value.

 

 

newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 259
The problem with ants and grass hoppers

In high school I had a music teacher/conductor who loved to quote "the problem with excuses is they sound like excuses" whenever a student was late to rehearsal. So what if, the problem with stories is they sound like stories. As humans we are wired for "short-cuts" and heuristics ie story telling. 

As has been stated here before you can't prepare for any-thing. If one wants to live in the boonies spending time chasing uncooked chickens and goats than more power to ya. If you live in one of the forests of McMansions I just experienced in Ohio you will be prevented by Association regulations from doing anything effective. If you are wealthy and and can pay for it, you probably have a "man" for that already.

But ultimately we have to pick the stories we want to believe in and believe in them enough to prepare. Pick your preparation. But you just might have prepared for the wrong emergency. 

The first question to be answered is, "am I dreaming?".

Quick note: The first State sanctioned murder of a human by a robot has occurred. How will future AI reviewing precedent, not see that as having been a good option.  It's just a story.

"Be cheerful while you are alive."  -- Ptah-Hotep, 24th Century B.C.

 

John P Prosperity's picture
John P Prosperity
Status: Member (Offline)
Joined: Apr 13 2016
Posts: 2
Advice for stackers

Thanks, Chris.  Yes, I found the guide to be brief but quite helpful when I was getting started.  I think that I most benefited from "Crash Course" and "Prosper", which do a great job of balancing financial preparedness with the other areas of our lives that need attention.

What I was hoping to find out from this group is an answer to the following:

I've rolled a portion of my 401k over to an HA IRA, and I have purchased PM's with about half of the balance.  The question I have now is whether to convert the remainder over to gold & silver at current market prices and not look back; or wait for a more advantageous market like last Dec/Jan, which may never come back.

Obviously, no one knows what the future will hold, but is holding out for a better price for my "claims on wealth" (i.e., cash in my HA account) really wise?  In an answer, I'm looking for insights not guarantees.enlightened

Thanks again for your response.

--John

chris010's picture
chris010
Status: Member (Offline)
Joined: Jul 7 2016
Posts: 2
Thanks

Thanks all for the varied comments, all really helpful. Chris thanks for the link, I missed that and it was helpful information for deciding on a starting position. I'm about 3/4 of the way through the Crash course and I have to say it must be the clearest and balanced explanation of the state of this planet I have come across - have already passed it on to some friends. Glad I found you all =)

Chris

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