How Much Gold and Silver Is Needed For Financial Crisis

[SilverStorm]

I apologize if this topic has been covered; I did a quick search and did not find anything similar.    I came across the following information and wanted to share, as I thought it was quite intriguing.

Note: I am not advocating whether or not a person should stack.  This is a personal decision, and is based on many factors such as your personal circumstances, your financial goals, your personal beliefs in holding precious metals, etc.  Always discuss financial matters with your financial advisor on what is the correct path you should take.  What is the right decision for one person may not be appropriate for another. 

You may agree or disagree with the posted content, and I look forward to hearing your comments.   Please keep in mind that the charts below is based on old gold price of USD $1,300 and old silver price of USD $20, which needs to be taken into consideration.  Link to the website I copied/pasted from:  How Much Gold and Silver is Needed for Financial Crises (goldsilver.com)

 

 

Here's How Much Gold and Silver You Need for the Crises

Most of you reading this are already convinced of the need to own gold and silver. But as you continue to accumulate, a question naturally arises: how much do you need?

Imagine the sick feeling in your gut if we get to the next financial crisis and you suddenly realize you didn’t buy enough bullion to get through it. For this reason alone, it’s worth thinking about how many ounces you might need.

More and more investors are recognizing this, and we receive questions about it. The wording varies, but the basic question is the same: how much physical gold or silver should I own to be in good shape should an economic crisis hit?

Why Traditional Advice is Meaningless in a Crisis

Traditional financial advice is that gold should comprise 5-10 percent of assets, or 10-20 percent if you’re not including home equity. But Mike and I are convinced that amount won’t cut it in the turmoil we believe is ahead. What passes for “normal” advice could be financially devastating in abnormal times. Furthermore, the lower your overall net worth, the less meaningful these percentages are. And in a time of crisis, you will need absolutes, not percentages.

If you’ve struggled to determine if you have enough physical gold and silver, GoldSilver has created a practical guide for you. This measuring stick is a more effective way to gauge if your allocation will be sufficient.

What You’re Doing with Your Precious Metals

Which brings up a rather obvious question: when you sell your stash, what will you do with the proceeds?

There will be plenty of options that run the gamut of practicality, whether that means buying undervalued investments, building a family fortune, buying a vacation home or supplementing your income during the crisis.

The point is, you will buy something with those proceeds.

And that is the starting point in knowing if you have enough ounces: will your stash be sufficient to support your standard of living during a major financial disorder? And there is no single right answer to this question. In other words, you shouldn’t just ask “how much silver does Mike Maloney own?” and base your buying habits on that (though I’m sure he’d be flattered). Each person’s circumstances are different, and that means having a unique strategy for yours.

What to Expect During the Crises

A “major financial disorder” will include inflation, of course, but it’ll be much more than that. The global economy is likely to undergo a series of crises, only one of which will be inflationary.

And those crises won’t resolve quickly. As a result, we need to be prepared to weather all storms that hit our economy, markets and monetary system, even if they last for several years. We’ll be living through the entire transition period. And that means we may need to supplement, or fully support, our standard of living during that time.

It is with this reality in mind that the following tables were created.

I calculated how much gold and silver you would need based on two factors: 1) your monthly expenses, and 2) how long the crisis period lasts.

(Note: the chart assumes the gold price keeps up with inflation, though history shows it is likely to far surpass CPI readings. If so, it’s possible we’d need less than what is shown. It also assumes you pay the taxes from another source.)

Here’s the table for gold:

To determine how much gold you should buy, find the monthly expense amount that will support or replace your current standard of living, and then match it to the duration. If you want to supplement your expenses by $500/month and the crises last three years, you would need about 14 ounces of gold to get through it. If you want to cover $3,000 in monthly expenses, you’d need 45 ounces to meet a crisis period of two years, and 90 ounces if it lasts four years. Those already well off or who want to live like Mike or Alex should use the bottom rows of the table.

Of course, we own silver, too. Here's how many ounces you’d need if you’re using silver proceeds, again assuming the price keeps up with inflation.

A $500/month supplement would need 300 ounces of silver to get through one year, or 1,500 ounces for five years.

If you want $3,000/month, you’ll need 1,800 ounces for one year, or 9,000 if it lasts five years.

Of course, we can use both gold and silver to meet expenses. For $1,000/month, you’ll need nine ounces of gold and 600 ounces of silver to get through a two-year crisis period.

These amounts may look high, but keep in mind that if you don't save in gold and silver now, you'll be forced to spend a whole lot more in currency later.

These tables show how practical gold and silver can be. They really can be used to protect our standard of living — and even improve it if the price of precious metals rises during times of crisis like they have in the past.

So how much gold and silver do you need? I hope these tables show what you need to accumulate.

[Bigmarc]

Interesting read. I suppose it all depends on the severity of the crisis. My personal opinion is the author misunderstands the purpose of gold and silver. If they are talking hyper inflation then our beloved metal would be pretty much redundant during the crisis but after the crisis, when everyone else has lost their wealth, we as collectors have a pretty good head start in the new monetary system. 

This is no means the reason I collect. I do it just to have physical assets the current working system. If there was a crisis I would probably move on to cooking oil and wine.

[Stu]

It is odd, Mike M aft advocated that a monster box of silver(500toz) would be able to purchase a median house in a downturn.  Now we are to accept we need 3 monster boxes i.e. 1500toz or 3 houses to maintain $6000 yearly expenses over a 5 year period in a downturn. I’m confused. 

 

[CollectorNo1]

55 minutes ago, SilverStorm said:

I apologize if this topic has been covered; I did a quick search and did not find anything similar.    I came across the following information and wanted to share, as I thought it was quite intriguing.

Note: I am not advocating whether or not a person should stack.  This is a personal decision, and is based on many factors such as your personal circumstances, your financial goals, your personal beliefs in holding precious metals, etc.  Always discuss financial matters with your financial advisor on what is the correct path you should take.  What is the right decision for one person may not be appropriate for another. 

You may agree or disagree with the posted content, and I look forward to hearing your comments.   Please keep in mind that the charts below is based on old gold price of USD $1,300 and old silver price of USD $20, which needs to be taken into consideration.  Link to the website I copied/pasted from:  How Much Gold and Silver is Needed for Financial Crises (goldsilver.com)

 

 

Here's How Much Gold and Silver You Need for the Crises

Most of you reading this are already convinced of the need to own gold and silver. But as you continue to accumulate, a question naturally arises: how much do you need?

Imagine the sick feeling in your gut if we get to the next financial crisis and you suddenly realize you didn’t buy enough bullion to get through it. For this reason alone, it’s worth thinking about how many ounces you might need.

More and more investors are recognizing this, and we receive questions about it. The wording varies, but the basic question is the same: how much physical gold or silver should I own to be in good shape should an economic crisis hit?

Why Traditional Advice is Meaningless in a Crisis

Traditional financial advice is that gold should comprise 5-10 percent of assets, or 10-20 percent if you’re not including home equity. But Mike and I are convinced that amount won’t cut it in the turmoil we believe is ahead. What passes for “normal” advice could be financially devastating in abnormal times. Furthermore, the lower your overall net worth, the less meaningful these percentages are. And in a time of crisis, you will need absolutes, not percentages.

If you’ve struggled to determine if you have enough physical gold and silver, GoldSilver has created a practical guide for you. This measuring stick is a more effective way to gauge if your allocation will be sufficient.

What You’re Doing with Your Precious Metals

Which brings up a rather obvious question: when you sell your stash, what will you do with the proceeds?

There will be plenty of options that run the gamut of practicality, whether that means buying undervalued investments, building a family fortune, buying a vacation home or supplementing your income during the crisis.

The point is, you will buy something with those proceeds.

And that is the starting point in knowing if you have enough ounces: will your stash be sufficient to support your standard of living during a major financial disorder? And there is no single right answer to this question. In other words, you shouldn’t just ask “how much silver does Mike Maloney own?” and base your buying habits on that (though I’m sure he’d be flattered). Each person’s circumstances are different, and that means having a unique strategy for yours.

What to Expect During the Crises

A “major financial disorder” will include inflation, of course, but it’ll be much more than that. The global economy is likely to undergo a series of crises, only one of which will be inflationary.

And those crises won’t resolve quickly. As a result, we need to be prepared to weather all storms that hit our economy, markets and monetary system, even if they last for several years. We’ll be living through the entire transition period. And that means we may need to supplement, or fully support, our standard of living during that time.

It is with this reality in mind that the following tables were created.

I calculated how much gold and silver you would need based on two factors: 1) your monthly expenses, and 2) how long the crisis period lasts.

(Note: the chart assumes the gold price keeps up with inflation, though history shows it is likely to far surpass CPI readings. If so, it’s possible we’d need less than what is shown. It also assumes you pay the taxes from another source.)

Here’s the table for gold:

To determine how much gold you should buy, find the monthly expense amount that will support or replace your current standard of living, and then match it to the duration. If you want to supplement your expenses by $500/month and the crises last three years, you would need about 14 ounces of gold to get through it. If you want to cover $3,000 in monthly expenses, you’d need 45 ounces to meet a crisis period of two years, and 90 ounces if it lasts four years. Those already well off or who want to live like Mike or Alex should use the bottom rows of the table.

Of course, we own silver, too. Here's how many ounces you’d need if you’re using silver proceeds, again assuming the price keeps up with inflation.

A $500/month supplement would need 300 ounces of silver to get through one year, or 1,500 ounces for five years.

If you want $3,000/month, you’ll need 1,800 ounces for one year, or 9,000 if it lasts five years.

Of course, we can use both gold and silver to meet expenses. For $1,000/month, you’ll need nine ounces of gold and 600 ounces of silver to get through a two-year crisis period.

These amounts may look high, but keep in mind that if you don't save in gold and silver now, you'll be forced to spend a whole lot more in currency later.

These tables show how practical gold and silver can be. They really can be used to protect our standard of living — and even improve it if the price of precious metals rises during times of crisis like they have in the past.

So how much gold and silver do you need? I hope these tables show what you need to accumulate.

Is this a copy n paste from a bullion dealer or an article from a well known American financial newspaper???

[KevinFlynn]

A rule of thumb I learned was an ounce of gold per month, an ounce of silver per day.

[SilverStorm]

 

7 minutes ago, CollectorNo1 said:

Is this a copy n paste from a bullion dealer or an article from a well known American financial newspaper???

Copy/paste from bullion dealer.   Therefore take the information provided with a grain of salt if you feel it is warranted.

Edited July 30, 2021 by SilverStorm

[CollectorNo1]

2 minutes ago, KevinFlynn said:

A rule of thumb I learned was an ounce of gold per month, an ounce of silver per day.

Cool..if you have the surplus finances for that..most of us don't.. 😪

[SilverStorm]

4 minutes ago, KevinFlynn said:

A rule of thumb I learned was an ounce of gold per month, an ounce of silver per day.

Wow, that's a lot! 

[CollectorNo1]

1 minute ago, SilverStorm said:

 

Copy/paste from bullion dealer.   Therefore take the information provided with a grain of salt if you feel it is warranted.

No disrespect but your post looked like it had been copied and uploaded on the TSF..

[SilverStorm]

1 minute ago, CollectorNo1 said:

No disrespect but your post looked like it had been copied and uploaded on the TSF..

Yes, that is exactly what I did.   Is this not allowed on TSF?   If it is not allowed, I will take it down.

[Stu]

6 minutes ago, KevinFlynn said:

A rule of thumb I learned was an ounce of gold per month, an ounce of silver per day.

**** me. A Roman soldier would put his life on the line for around 3g of silver per day. Strange times indeed. 

[KevinFlynn]

I didn't say I could afford that 😄

It was something that people agreed on when discussing stacking for retirement.

 

Let's see, at current prices that would come down to just over €2.000,00 a month, ignoring premiums. And the idea would be that it would be inflation resistant, so no need to adjust in a long term plan - an ounce of gold will buy roughly the same amount of goods now as in 30 years. Of course stacking for, say, 20 years of retirement, would need an equivalent investment of €480.000,00 then. Maybe better to live an unhealthy life...

Edited July 30, 2021 by KevinFlynn

[CollectorNo1]

3 minutes ago, SilverStorm said:

Yes, that is exactly what I did.   Is this not allowed on TSF?   If it is not allowed, I will take it down.

Not at all my friend...was just asking..

Respect.

 

[CollectorNo1]

2 minutes ago, KevinFlynn said:

I didn't say I could afford that 😄

It was something that people agreed on when discussing stacking for retirement.

 

Let's see, at current prices that would come down to just over €2.000,00 a month, ignoring premiums. And the idea would be that it would be inflation resistant, so no need to adjust in a long term plan - an ounce of gold will buy roughly the same amount of goods now than in 30 years. Of course stacking for, say, 20 years of retirement, would need an equivalent investment of €480.000,00 then. Maybe better to live an unhealthy life...

Well if gold and silver spot prices stay the same in 20 years  then yes..but I believe in 20 years..gold and silver would have doubled at least maybe trebled in price....so investing in gold and silver now at the current spot price is a winner for you when you sell in 20 years....no brainer my friend....

[ady]

What you have to remember is at the moment is that  everything is controlled by the derivatives markets. Most prices can be put where ever through derivatives. With the PPT, FASB56, SDR's, & Crypto, the PTB are in total control. The Central Banks will run this till it breaks. With the CV19 they have got everyone distracted and a compliant population. They have already bought huge assets with free printed money it just a matter of time till either we get full on totalitarianism or more free markets. 

[Tn21]

What do we do with the silver we have in an financial crisis? 

Let's not forget that gold and silver will also be hit just like everything else, we just hope it will be to a lesser extent. 

For me the metals has 2 outcomes when it comes to exit strategy.

1) sell it on at a higher price 

2) exchange it for other goods 

[KevinFlynn]

Would gold and silver really be hit?

In relation to fiat currency?

In relation to goods?

What about the theory that precious metal value represents about the same value at any time. I hear quotes that you could buy a good suit for an ounce of gold around 1900 and a good suit for an ounce of gold today. Precious metals will rise against fiat, but goods will as well. Wouldn't precious metals stay on par with goods? I view precious metals as wealth preserving as in inflation compensating. An intrinsic quality that comes with the asset.

[Tn21]

31 minutes ago, KevinFlynn said:

Would gold and silver really be hit?

In relation to fiat currency?

In relation to goods?

 

I believe they will get hit in a crisis, I think the safe heaven aspect will kick in only after the dust begins to settle. 

I'm just a novice so I can't really give you and answer on the other 2 questions

Edited July 30, 2021 by Tn21

[CollectorNo1]

1 hour ago, SilverStorm said:

 

We will be all dead and pushing up daisy's before we see £3000 oz gold and £100 oz  silver....we just have to stack both and hope we make a little profit on our stacks when we retire...fact!!!!

[KevinFlynn]

 

 

Question is how much of the current worth of gold and silver is coming from it's intrinsic value and how much it derives from being a somewhat luxury item. I agree it would be naive to think that a silver ounce will always be able to buy the same amount of bread. But I wanted to comment on the angle taken by the original article in using gold and silver to supplement income.

I'd say wealth preservation - yes, equal purchasing power - maybe, rising in worth against fiat - yes (we've been seeing that over the last decade), equally rising in worth against goods - maybe.

Edited July 30, 2021 by KevinFlynn

[Bigmarc]

37 minutes ago, KevinFlynn said:

Would gold and silver really be hit?

In relation to fiat currency?

In relation to goods?

What about the theory that precious metal value represents about the same value at any time. I hear quotes that you could buy a good suit for an ounce of gold around 1900 and a good suit for an ounce of gold today. Precious metals will rise against fiat, but goods will as well. Wouldn't precious metals stay on par with goods? I view precious metals as wealth preserving as in inflation compensating. An intrinsic quality that comes with the asset.

In the 80s and 90s during the hyper inflation period in Romania there were green growers and butchers that did there trade for the day and by the time they went to the wholesalers, inflation had risen that much the hadn't made enough money to restock. Even the people working in the mints that make the money didn't want to work for the money they were producing. This is obviously worse case scenario but if you were to sell a ounce of gold to pay your bills, by the next day the money would be worthless. People would only want gold and silver if they had the means to hold on to it.

[jultorsk]

Another angle..

https://youtu.be/yyTcZLETyHg

 

[pricha]

Best not to overthink things. I collect it because it's pretty 😆 . It's part of a diverse portfolio as they say . 

[SilverStorm]

On 30/07/2021 at 15:11, Bigmarc said:

In the 80s and 90s during the hyper inflation period in Romania there were green growers and butchers that did there trade for the day and by the time they went to the wholesalers, inflation had risen that much the hadn't made enough money to restock. Even the people working in the mints that make the money didn't want to work for the money they were producing. This is obviously worse case scenario but if you were to sell a ounce of gold to pay your bills, by the next day the money would be worthless. People would only want gold and silver if they had the means to hold on to it.

I'm glad you mentioned this.   See my post below on a YouTuber's first person commentary about the effects of hyperinflation in his country, which correlates to what you've mentioned.   The only real concern I would have is whether or not a bullion dealer is available to buy back your PM stack for fiat currency in a hyper inflation period. 

Scenario #1: If bullion dealers are around, the question would be if they have enough fiat to buy back your PM. 

Scenario #2: If bullion dealers go out of business, your gold and silver can't be converted into fiat.  Then your PM stack would be useless unless you could barter it (trade PM for goods/services).  IMHO, this last scenario might be the scariest because if the economy crumbles to a barter-only system, the financial/economic collapse would be absolute.    

(sorry, just some miscellaneous ramblings going on in my head lol)

 

 

 

[dikefalos]

For me silver is an insurance for trading goods in a crisis. Gold is the help for a good start after a crisis. But this is the worst case scenario. Best case scenario, there will be not such a crisis like in the 30s and i can spend some of my precious metals as a old guy, and be able to buy icecreams for my grandios without counting every cent. And the rest of it goes to my kids. But in every way, PMs are for me the best way for me to not going broke