My Silver Stacking Plan - Finalised

[HighlandTiger]

As many regulars on here are aware, I am heading towards that cliff called retirement at a quick rate of knots, and need to come up with a radical plan to save lots and earning the maximum from that saving. Silver has become part of my savings plan and after about 4 months of research I have finalised how I am going to do it.

 

In all my plans I have assumed, rightly or wrongly, that sometime in the next 15 years silver will double in spot to reach £25 an oz. I don't think this is unreasonable, and I could quite well be under estimating where it will go. I am also for mathematical reasons assuming a base figure of around £12.50 an oz. Which is roughly todays price, and where I have come into silver stacking. I have no intention of taking major risks on coins that may or may not rise sharply in value due to possible collector popularity. I can't afford to make mistakes on these coins

 

I have looked at Silver Numi coins, and the prices there seem to be fairly fixed and unless the silver price radically increases to silly money then silver spot changes won't affect the profit to be made on these coins. So I'm not going to stack much of these, UNLESS, I can get these coins at about 50% over todays spot. Meaning that I'll buy a Morgan if it is less than £18. I also include sterling silver crowns etc into this group. Especially as you can pick up some major bargains with a little patience and discipline. This will form 20% of my stack

 

The semi-numi coins are a mine field. I have noticed though that the coins with the largest premiums ie, costing well over £100 today, have fairly settled in price, and rarely change much after the initial hype, and swings in silver values. I can't see them going up much in 15 years. After all, there are semi numi coins from 1999 that are being sold at similar prices to coins minted this year from the same set. So as a percentage a doubling in silver price, won't see a doubling in the semi numi price. A rise of £12.50 in silver won't see a £100 coin go to £200.

 

However those coins closest to spot, (and I think the range shown on STG's website, is a perfect example of the coins I am talking about), will react with the largest percentage price wise to a change in Silver price. Currently we can get these sort of coins for between £2 and £10 over spot. I think these smaller premiums will continue if the silver price rises. So a coin today costing £15, (or £2.50 over spot) will certainly make £27.50 if silver doubles in price.

 

These are the coins I will collect, and I've given myself a fairly loose rule on which coins I will stack from these. It is the rule of 100% of a base of £12.50.  So if I can buy a 1/2 oz for less than £12.50, a 1 oz  for less than £25.00, 2 oz for less than £50 and so on, then into my pot it goes. This will be 50% of my silver stack

 

Finally the junk Silver. As a quick cash liquidity option, these will also be part of my stack. With patience again, the .925 and .500 coins and junk silver spoons, napking ring etc can be bought at spot or even lower, and should silver double in price these should be able to give me a very good profit percentage wise. They can be sold with money in your bank within 24 hours. This will be 30% of my stack.

 

 

I'm sure many of you will have issues with my assumptions and decisions, but I'd be interested to hear if anyone else has similar thoughts on their stacks.

 

HT 

[Ares]

I'd imagine the premium will go up as well but due to inflation.

Seems a solid plan, if I were going to be stacking coins then STG would be where I'd go.

[silversword]

Betting everything on silver?

[Ares]

In terms of PM's it looks like it, but not in terms of his overall saving plan.

 

But now you said it, some low premium gold wouldn't go amiss, it seems to hold its value better.

[StackemHigh]

In terms of PM's it looks like it, but not in terms of his overall saving plan.

 

But now you said it, some low premium gold wouldn't go amiss, it seems to hold its value better.

 

And it's much easier to store at a fraction of the size to silver, and it won't tarnish either put it in a flip and forget about it until you need it.

[DrDime]

Looks like a good plan HT. Personally I would go with a bit of gold too as a kind of hedge (will tend to go down slower than silver). However having said that I've noticed that many many people have been calling a bottom on the PM market in the last week what with the Russia situation etc. Also, a little bitcoin wouldn't go amiss...;-)

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[DrDime]

Also, at last resort, a tube of 50 1/10 gold coins can be hidden neatly on your person papillon style....

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[Keithoil]

I like the plan but as mentioned previously a little bit of gold would be good, very easy to sell and not much below spot.

 

I too am heading the same way and may be able to get my pension next year when I turn 55.

 

I do plan to work for at least another 5 years or so and build up my own personal savings etc. The Middle East would be great for the plan.

 

But as I am a contract Engineer (DCS - Control) I will go to the highest bidder!!!

 

I would hope that silver and Gold are way above your numbers, that would be good all round.

[HighlandTiger]

As I said in the title, This is my silver stacking plan. 

 

But as I've said elsewhere I will be stacking gold as well. Although this is fairly easy to do, as I will be picking up sovs and half sovs, plus whatever else I can find, but never paying more than 5% delivered.

 

The amount of gold I will be buying will be determined by the amount of silver I buy and the current gold / silver ratio. I will be aiming to match my silver and gold stacks to the ratio. This way my buying will automatically move more to gold or more to silver as the ratio moves up and down.

 

So at the moment I have 188.51 oz t of silver, the current Gold Silver ratio is 62.35. So I should have 3.02 oz's of gold. But I'm a bit short of that, which is why for the next few months I'll be trying to buy a few more sovs.  

 

Once I've caught up, I'll buy bit more silver, and then the cycle will go around with a bit more gold.

 

I've got all these figures in my spreadsheets, so I can follow it quite easily

[SilverPirate]

Any assets accumulated for your retirement is a bonus and having a plan sounds good to me,I was looking at my ISA's and other savings and the interest rates are uninspiring,

A good rise in metals ,or a little rise on a lot of metals should in theory piss all over a saving account.

[Cornishfarmer]

Found this interesting, I'm aiming for 1oz silver a week, 1 soverign a quarter and 1 oz gold per year of my working life. Got a bit of catching up to do but think its doable, will give a little nest egg

[Kman]

I'm pretty torn over this subject of putting all your money into silver/gold as a retirement plan

 

On one hand it's a pretty safe thing to do, especially with silver, as it's not really possible you're going to lose money 

 

One the other hand you have to pump so much money into it to get a good return

 

With your doubling estimate, £10,000 to make £20,000 doesn't seem like a fantastic gain + £10,000 worth of silver is a lot to store. 

 

There are relatively safe and much more profitable investments out there; it's just having the luck to come across them + desire to learn. 

[silversword]

On one hand it's a pretty safe thing to do, especially with silver, as it's not really possible you're going to lose money 

 

In before Pete...

 

But to be honest CF's plan looks sensible enough, provided that he isn't putting every last spare penny in to acquire these purchases. I am undecided on gold coins for investment though, and I say that as someone with a couple of sovereigns and halves. Unless you find coins with low premiums, stick to bars for investment gold as they can often work out cheaper to buy for the same gold content.

[Kman]

But to be honest CF's plan looks sensible enough

 

Sensible is relative 

 

It's sensible if you don't know of any better investments

 

I know of a better investment, domain names, so It wouldn't be sensible to store anything but a small % of my money in PMs

[silversword]

At today's pricing (and here we are assuming no big movements) he is buying 52oz of silver per year (approx £1000 allowing for 52 sensibly sourced 1oz coins, you could easily get it cheaper, or pay more) an ounce of gold (£800 for arguments sake) and 4 sovereigns (another £800 lets say). That is £2,600 a year, or £216 a month. If he only has £300 to spare per month for savings/investments then it's a big chunk but otherwise I cannot see the harm.

 

Commonly accepted wisdom is that you shouldn't invest in things you don't know anything about. If CF has done his research, and feels this is an affordable strategy that doesn't put him in a position where he is overly reliant on one market, then it seems sensible enough.

 

There was a time when domain names seemed a sensible investment to me. Then the spate of cyber-squatting lawsuits (including someone I know recently taken to court over a domain and forced to give it up) rather put me off. Clearly you know the area better than I do and hats off to you. Comes back to knowing the market.

[Kman]

Comes back to knowing the market.

 

Anyone could do what i'm doing, they just need three things (and i suppose this goes for any investment)

 

To know it exists + the desire/resources to learn about it +  money to invest

 

I'm sure there are tons of opportunities out there to make easy money, just we don't have all 3 above.

 

I think other options should be explored before putting all your eggs in the PM basket. 

 

ps. On the topic of having domains take off you, as long as it's a generic word(s) and you haven't got content on the site in the same trademark class as the holder, you're cool.

 

If you owned virgin.co.uk and talked about no sex before marriage you're cool lol. 

 

If you owned virgin and were trying to sell broadband deals it's going to be taken off you. 

[Pipers]

Its good to see more people with strategies, thinking about the maximum profit over the long term.  I have one word of caution looking back at the charts, Silver tends to spike then plateau again.  IMO when there is a spike profits must be taken, you can always buy back when the price falls back again for long term investment.  Its good to see you are buying Gold too.