What’s the ‘End Game’ ?

[IainR]

Hi.... I’m very new to owning precious metals so please go easy on me.

I understand precious metals hold wealth as they are a true store of monetary value over time. I also understand precious metals can’t be expanded/printed/digitally made up so therefore can’t be inflated away. 
The constant question I find myself asking is ‘what is the end game’?

Exchanging fiat currency for precious metals stores wealth. But I can only see 3 future outcomes.

1. Keep stacking and pass on to dependants.

2. When fiat collapses use precious metals to purchase goods and services.

3. Exchange precious metals for fiat currency when the price has risen above its original purchase price.

I may be able to do a little of number 1. I see digital currency stopping number 2 from happening. So that leaves number 3 which gives me a dilemma. Is going back to fiat after owning precious metal a betrayal of why we are doing this in the first place or is this just part of the cycle of ownership?

Sorry for the long post but I would really appreciate some insight from seasoned knowledgeable folk like yourselves on this forum.

Thanks Iain 

 

 

 

[Roy]

Hi Iain,

All of your ideas are good and members will probably action or try to action one or all of the outcomes in their stacking career.

I doubt no.2 will happen however.

The 'end game' is wealth preservation. Save in gold and the reward for your labour will not be lost, stolen or inflated away.

[MancunianStacker]

Hidden wealth (not on the books) will be the last thing they try to get when they start any bail-ins. The Greeks got to keep their gold and could exchange for cash. They were limited to €50 a day I believe? This scenario has already happened.

[Martlet]

Trading metal for fiat certainly isn't a betrayal of anything, its the point of exercise.  Preserving wealth means you can spend later or pass on later for others to spend.  

[AuricGoldfinger]

Can’t say any better than @Roy’s comment.

Dont feel the need to hold forever do what suits you best, you seem to have a pretty good understanding of PMs so its a better start than most!

[Kman]

"3. Exchange precious metals for fiat currency when the price has risen above its original purchase price."

Hopefully you would be exchanging it for something else you're confident has greater potential to increase in value, whether that's stocks, property, art or something else; personally I've found great success in domain names

I'd say it's prudent to always have some kind of position in precious metals, a nest egg of savings outside of the bank/cash

Things go in cycles up and down, in an ideal world you would interchange between assets every few years selling off one on the high, buying another other on the low 

All we can do is try and build as much knowledge as we can to take advantage of things; I've only just started learning about the stock market, something I should have been doing 10 years ago

Aside from the obvious historical investments whats the next big thing going to be? 5g? Marijuana? space tourism? green energy? emerging markets? is genome sequencing the future of healthcare?

Lots of interesting things to think about

 

 

[Oldun]

Sorry to be a **** but there is no end game. It is how you choose to enjoy your time on this earth. No investment or chunk of metal can or will ever replace that. 
 

Back in the material world, buckle up. The next 20 years will, in general, see a decline in Western hegemony and disposable income, amongst others. A percentage of your personal wealth devoted to pms (gold primarily, silver if you want a heart attack) around 5-20% at most should get most through. However, it depends on your age, family and life situation and job prospects etc....many moving parts. As Roy said, it is about wealth preservation at this point. If you can do that or better, you will be doing very well indeed.

[Kman]

5 minutes ago, Oldun said:

.However, it depends on your age, family and life situation and job prospects etc...

I'm going to go a bit against what I said in my post above, which is an ideal world scenario

Along with what you said, I'd say it depends on your brain as well

The same as some people are naturally gifted at art, music, maths, dancing, memory, science etc

I think some people are more inclined to being good investors but the majority of people aren't

Maybe for most people it is just best to put savings into precious metals and leave it at that 

 

 

[vand]

There is no end to the game. 

The game is to grow your wealth. It's an ongoing process.

Spend less than you earn, do it over a meaningfully long enough time, and invest the difference wisely. Metals, Stocks, Bonds, Fiat.. they all can help you to achieve this. 

The goldbugs have been talking about a reset for decades now. Maybe they'll get it within their lifetime, maybe not. I don't lose much sleep thinking about it. Don't put all your eggs in one basket - buy a broad mix of assets and let them compound over the years. 

[Xander]

Getting your needs mixed up with your wants leads to borrowing money you don't have which leads to keeping you up at night. So on and so on. No end game ever in sight.🤑

[lazybones]

Can I just say that,   as a man of a certain vintage,  it's important to remember that the two greatest and most valuable things you will ever have are ......

1)  Reasonably good health

2)  The TIME you're given.

Best regards 

[IainR]

27 minutes ago, lazybones said:

Can I just say that,   as a man of a certain vintage,  it's important to remember that the two greatest and most valuable things you will ever have are ......

1)  Reasonably good health

2)  The TIME you're given.

Best regards 

Very true.... great reply’s all round. Thanks for all your insights 

[TheApe]

I think you should be looking at gold as a reasonable way to store\preserve your wealth.

You seem to be more looking at it as holding stocks.

[Melon]

4 hours ago, Oldun said:

Back in the material world, buckle up. The next 20 years will, in general, see a decline in Western hedgemony and disposable income, amongst others. 

It may. It may not. That's the beauty of opinions. 

[Oldun]

True but I think you will find it is actually happening to most people right now and, in my opinion, there is an increasing likelihood that this will continue to worsen before it gets better unless they find free energy or cold fusion happens or some such thing, so sure, never say never but on its current trajectory, it appears we are heading into a tougher economic period than most realise.