How Much Of One's Cash Assets Should Be Put Into Precious Metals?

[Glenn B]

I prefer a portion of my precious metals be in the form of lead. When someone suggested I purchase silver, I responded a small amount of lead could take his large amount of silver.

Typical of what democrats & other leftists have been trying to do for a long time now - redistribute the wealth. I can assure you of this - should anyone ever try to take from me what I have by way of armed force - resistance on my part will be futile fruitful - for me.

 

[Glenn B]

If gold is so valuable why are people selling it?

Because others are buying it and the sellers are making a profit because it is valuable.

 

[ZX9RCAM]

Paper is just that - paper. Only good if someone honors it.
The precious metals I have are physically in my safe.

Ditto.

 

[DoubleDuty]

can't eat any of that stuff
shtf it'll be the best of humanity or the worst of humanity.
I'm betting on worst.

We have seen it with the panic buying in grocery stores.

 

[DoubleDuty]

No one holds it for me. I do not buy gold shares or whatever they are called, I buy physical bullion from the American Precious Metals Exchange (APMEX), one of the largest, if not actually the largest, ecommerce bullion dealer in the US. I have it shipped to me, then I secure it in different secure locations accessible to me. Having someone else hold it for me would defeat the purpose - having it for an emergency.

Perfect you are doing it the right way.

 

[Axxe55]

Investing in lead, copper and brass are much wiser investments.

 

[rotor]

Investing in lead, copper and brass are much wiser investments.

Add primers and powder to that.

 

[pronstar]

I see assets as things that pay me to own them, things that kick-off cash into your pocket.

IMHO metals are more like stores of value.


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[TX oddball]

can't eat any of that stuff
shtf it'll be the best of humanity or the worst of humanity.
I'm betting on worst.

If God forbid, TEOTWAWKI or a black swan event, holding precious metals is for retaining some of one's previous wealth if society ever restarts. If a monetary system fails, if the U.S. dollar collapses, gold historically, through the centuries, is seen as a standard bearer of currency. Why is China, India, Russia, and many other countries buying and stockpiling gold? Why did Gov. Abbott sign a Texas bill in 2015 to pull its 1 billion dollars of gold out of the N.Y. Federal Reserves and store it in Texas?

Investing in lead, copper and brass are much wiser investments.

What is wrong with "investing" in BOTH gold/silver and ammo? I have, including reloading components.
And to be truthful for my case, buying gold has nothing to do with traditional "investing" strategy, but as a fail safe for the above scenarios.

 

[MTA]

Yeah there’s around 500x more paper gold than physical gold in existence.

When SHTF and people start trying to cash in their paper claims, things are gonna get real.

Also folks should consider that China and Russia are buying gold, and mining it, at a furious pace.


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Ive never heard of “paper gold” until your post. Idk why someone would buy that in place of physical gold

 

[Tnhawk]

Ive never heard of “paper gold” until your post. Idk why someone would buy that in place of physical gold

They claim your assets are safer in their hands than in yours. It works well for those who have possession.

 

[leVieux]

I have been buying gold & silver bullion ever since I departed NY and wound up here in Texas. I had a small amount of it already when in NY but when I separated from 2the wife, I sold it all and we split the proceeds. Right now, I figure I have maybe 2.5% of my total cash assets in those metals. I figure that is way too low in the event we become the New Venezuela or the new pre-WWII Germany and it seems we may be headed that way or even toward a worse situation. Even if the Rebooblikins annihilate the dimokrats in the midterm elections, the damage has been done by Biden and will need a miracle worker to repair, so an economic collapse may be inevitable. So, I am trying to get some insight on what investor types believe is a good percentage of ones cash assets to put into bullion, primarily gold & silver and how much of a percentage into each. Right now, the percentage of each of only my bullion assets are 40% gold, 60% silver but as I said they amount in total to only about 2.5% of my cash assets.

I wish I had bought the ounce or two of Rhodium that I had been considering purchasing back in about late summer to fall 2016 or so, especially when it was as low as $598.00 per ounce in August 2016 (source). Back then, I bought silver and a bit of gold - shame on me. Today, Rhodium is going for around $15,000.00 per ounce and was around 26K per ounce in April of the past year. (Same source as above.)

It's a bit late to be asking this for this "cycle". Overall, maybe 20%, if & when you can buy it "right".

 

[IXLR8]

Getting back to the OP, how much? You should have at least 4 different types assets, and be willing to lose any one of them. If you prefer to divide 4,5,6 ways even better. Diversification of assets is the way to go. The highest return is often the highest risk. Precious metals in my estimation are low risk, low return. You might get lucky and buy at just the right time, or are willing to hold it for 30 years, both could very rewarding. Land/real estate have been very good earners lately, but both are costly to own. Precious metals, not so much.

C'mon you have known all your life to not put all your eggs in one basket...

 

[Hoji]

Ive never heard of “paper gold” until your post. Idk why someone would buy that in place of physical gold

 

[Grumps21]

Right now bullion is a good hedge against inflation. I fully expect our dollar to further slide in purchasing power. There are those pushing to remove the dollar as the standard oil currency, and if that ever happens, we are going to be in some real trouble. I never understood the paper gold and silver. If I’m going to buy precious metals, I want the physical metals, not some promise to pay note that might not be honored if things get dicey. For those in Houston, US Coins and jewelry is highly rated and prices can’t be beat. They have unadvertised in store specials sometimes. In 2020, they gave away a free .999% pure silver one ounce silver eagles to I think the first 50 customers on Black Friday. Wife and I each got one. Money Metals is a good online source as well. They ship free at $500, and they will sometimes run pretty good specials on silver blanks or toss in a 90% coin with purchase.
Metals are up and so is ammo, but a little at a time isn’t as painful. Even just a silver round and a box of ammo per paycheck builds over time
Im debating the issue myself. I have two months to decide if I want to fund my Roth IRA for 2021 or use those funds for metals. The market can’t possibly keep the pace its been going, and I’m afraid that once the bubble does burst, that I won’t have enough working years to recover. I do not want to be working into my 70s

 

[Glenn B]

Getting back to the OP, how much? You should have at least 4 different types assets, and be willing to lose any one of them. If you prefer to divide 4,5,6 ways even better. Diversification of assets is the way to go. The highest return is often the highest risk. Precious metals in my estimation are low risk, low return. You might get lucky and buy at just the right time, or are willing to hold it for 30 years, both could very rewarding. Land/real estate have been very good earners lately, but both are costly to own. Precious metals, not so much.

C'mon you have known all your life to not put all your eggs in one basket...

It seems to me that maybe you think I have investments amounting to what you call all my eggs in one basket. Without revealing my assets or investments of them, I will say I am fairly diversified in that regard; hopwever, I feel I have less than what is probably desirable in precious metals and thus am hoping to get some suggestions as to what would be a good percentage of my cash to invest in bullion. As for precious metals, I do not consider them a money making investment but as an investment amounting to a hedge against losing all of my assets due to a possible economic collapse, one that I believe is almost inevitable. After I get that straightened out, I hope to make my next big investment in real property.

 

[HKSig]

Without revealing my assets or investments of them, I will say I am fairly diversified in that regard; hopwever, I feel I have less than what is probably desirable in precious metals and thus am hoping to get some suggestions as to what would be a good percentage of my cash to invest in bullion.

As much as you're comfortable with? 10% to 20%?

You can diversify what you buy too: "junk" or "constitutional" coins with silver content from 35% to 90%; bullion at .999 fine or .9999 fine; and collectible bars and rounds. I've gotten deals at pawn shops because some of them think "generic" bars and rounds aren't collectible and price them a little over spot.

The big vendors (APMEX, JM Bullion, Kitco, Provident) all do (did last time I checked) free shipping over a certain dollar amount, and give a discount for e checks or paper checks.

 

[Glenn B]

The big vendors (APMEX, JM Bullion, Kitco, Provident) all do (did last time I checked) free shipping over a certain dollar amount, and give a discount for e checks or paper checks.

They also offer discounts for bulk purchases. When I buy silver, I try to buy 100 coins at a time. The minimum I buy from them is a tube's worth - either 20 or 25 coins depending on the country of origin of the coins. I likely would not buy rounds or bars unless put out by a country's mint.

 

[Glenn B]

It's a bit late to be asking this for this "cycle". Overall, maybe 20%, if & when you can buy it "right".

It would be a long time before I could build it to 20%. I am too much of a wimp to lay out the cash all at once to get my bullion holdings to 20% - at least at today's prices.

 

[TheDan]

So, I am trying to get some insight on what investor types believe is a good percentage of ones cash assets to put into bullion, primarily gold & silver and how much of a percentage into each. Right now, the percentage of each of only my bullion assets are 40% gold, 60% silver but as I said they amount in total to only about 2.5% of my cash assets.

Gotta ask why you have cash assets at all? About all they are good for is holding some dry powder to buy up actual assets in case of a crash. Otherwise you're only earning at best 2% for them to rob you of 15%.

As far as actual percentages, I don't really know... Personally I have a lot in precious metals (including lead ), but significantly more in property. I completely got out of the stock market a few years ago; to include cashing in my 401k, penalties be damned. I'm intentionally cash poor, but that's just me.

silver and gold are highly manipulated.

Question is will the manipulations ever fail? The recent boondoggle with copper on LME shows they can basically keep it going forever. When they do finally fail I think we're going to have worse things to worry about.

It's a bit late to be asking this for this "cycle".

For gold you're probably right. I think it's got more to go, but it's mostly just going sideways. Gold leads everything else, tho... Silver still has a ton of room to move up.