For many members who've been introduced to precious metals, particularly silver, as one of the benefits of this Community, these are my seven tips for new stackers, in no particular order, to either help in making that first purchase or continuing along your new journey towards increased financial independence, choice and fulfillment.
In my opinion, it's more important now than ever to own silver and gold as form of wealth protection and building, privacy and a way to preserve purchasing power. Fiat currency is being de-based, government debt is at its highest ever, money printing continues, central banks are stockpiling gold at historic levels, digital currencies are being explored, wars and other geopolitical events are de-stabilizing markets, interest rates are high, the traditional stock markets (S&P, TSX, etc.) are declining, and the economy is hurting - our toilet paper money just isn't buying what it used to and holding onto it in large quantities is risky. People, both young and seniors, are looking to protect and preserve their savings and wealth from all of the above and looking more and more at precious metals, including silver.
Why am I focussing just on silver and not also gold? Gold has its place for many people as great way to store wealth - it has demonstrated itself over millennia as a safe harbour in times of turmoil. Gold is relatively expensive per ounce (~$2,700 CAD at time of writing) compared to silver (~$31.00) are thus often out of the reach of many folks. Silver on the other hand is more affordable plus is currently underpriced historically compared to gold. Plus, silver is one the most used metals in society as it has several industrial applications in electronics, medical devices, mirrors, etc., and plays a huge role in the growing "green" movement in solar panels, hydrogen vehicles. As it is mined less than gold, demand is outstripping supply thus making it also a great potential for growth when compared to gold.
1. Do not pay by credit card
There are two reasons for this one:
1) Most dealers will charge you more if you use a credit card as they have to cover the associated transactions fees levied by the card companies
2) Silver (and gold) is meant to be a savings plan and you shouldn't use credit as this can lead you down a negative path of towards debt - acquiring silver can become addictive! You shouldn't put yourself in debt.
For those concerned about privacy, the best way is to pay cash at a local coin dealer. They will never ask for any personal info. You choose your metals, hand over the cash, take your receipt and walk out. Simple as that.
2. Acquiring silver is a great form of long-term savings
Transferring your toilet paper currency for real money (i.e. silver) is a great way to save, protect purchasing power against inflation, and a way to build long-term wealth. It is not a get-rich quick scheme but rather a long-term and proven way to protect and build your financial peace of mind. Don't expect to buy and sell and make a significant profit in the short-term. Developing a regular saving place whereby you transfer cash for silver can add discipline and build your ounces.
"Remember, you not spending cash on silver but rather trading it in for silver. It's not an expense but rather a no-risk form of savings, and wealth protection and building."
3. Set realistic goals for your silver stacking journey.
Decide on the amount and frequency you want to invest and the purpose behind it - whether it's for long-term wealth preservation , generational wealth for your family, an emergency fund, retirement, etc. Like any financial goals, when you have a plan you chances of reaching it goes way up. A plan can be as simple as acquiring 10 ounces of silver each month for 10 years which would equal 1200 ounces (at today's price would equate to $46,800). With inflation, this would help to protect your purchasing power.
🎥 Check out this video about saving $200 / month for 20 years in a savings account vs silver vs gold and their current value today (courtesy Bald Guy Money - Youtube).
Don't want to watch the video in its entirety? Here is the highlight:
Between 2000 and 2023, if one would have saved just $200 per month, this is how much it would be worth today in a savings account, in silver, in gold (note: US dollars)
Bank account = $67,720 USD
Silver = $105,277 (4634 ozs)
Gold = $138,710 (72 ozs)
4. Diversify your silver stack
By acquiring different weights and forms, you will have more flexibility should you need to sell (e.g. sudden car repair) or for barter. The 1oz weight is king as it has maximum flexibility and great for barter and selling but can take up much physical space, so also having some 10 oz bars can be a good for larger expenses.
Also, choose both bullion coins and bars (e.g. Royal Canadian Mint Canadian "Maple", U.S. "Eagle", U.K. "Britannia", etc.), and generic rounds and bars (e.g. those from private mints) for ease of liquidity and barterability. For members of the Self-Sufficient YOU! community, you can follow my "Silver Bullion Learning Series" where I examine in detail the bullion from the major mints about the world.
✨Questions about silver and precious metals? Get in touch or book a 1hr private consultation.
5. Do not buy all of your silver all at once
Too many people as they start to stack silver just want to have a large amount all at once. The best strategy is to use the dollar-cost averaging approach whereby you are buying silver on a regular basis over time. By doing so, you flatten out your cost over time as the price you can pay will vary. If you buy all at once, your purchase may be at a time when the silver price is relatively high and it may take quite some time to recoup any losses. A regular and consistent purchasing plan can help to reduce your average cost and increase your ability to make a profit over time.
"If you can't hold it, you don't own it." Physical silver doesn't have any counter-party risk. Too many people think their savings are digits in their bank account on a computer screen. That isn't real money and can be spent too frivolously and/or taken away by "you know who's" with the press of a button.
6. Buy the dips
Taking advantage of silver price fluctuations, specifically the dips, can be a great way to help you dollar-cost-average and add ounces for less. Stay updated with the latest news and developments in the silver market. Economic factors, geopolitical events, market conditions and even industrial demand can all influence the price of silver. Being well-informed will help you make better decisions regarding your silver and often other investments.
Search on "silver stacking" in Youtube to start becoming familiar with the plethora of folks (often regular "Joes" and "Janes" like us) who put out regular videos on silver. Try to avoid those who tend to be doomsayers (SHTFers) or "price pumpers" who claim to know where the price is going - no one has a crystal ball.
👉 Some of the better ones who focus on education and info whom I like are:
Finding Value Finance (great analysis of ratios, market trends which include precious metals - Andy produces two videos / day and is my all-time fav!!!)
Yankee Stacking (great info for the new stacker)
Bald Guy Money (great practical, analytical info based largely on logic and on data)
7. Have fun! Once you make your first purchase and you get it in your hand, you will likely get hooked. Holding a piece of silver which was mined from deep within the Earth and refined into a beautiful coin or bar is a truly a magical thing. You will likely find that silver stacking becomes addictive and having a plan with a regular purchase schedule can keep you on budget and on track as always wanting more is very common.
Also, you will likely notice that having silver is an amazing way to save and build wealth. Why? Unlike a holding cash in a bank account which is easy to spend with the tap or a debit card or withdrawing at the local ATM, if you want to cash-in your silver there is some work involved. You would have to bring the appropriate amount to your local coin shop and trade it in for toilet paper currency- so this can act as a deterrent from frivolous spending which can be perfect for those who have a hard time saving. These seven tips requires a plan, patience and consistency. Once you get started, there is usually no stopping - as Martha Stewart says, "It's a good thing". Happy stacking!
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