As we all know, precious metals are a safe haven in the disastrous financial system we have been forced into today. Many people are flocking to physical bullion even before ETF’s and derivatives because the presence of bullion is then there and present in the hands of the owner. I don’t blame them.
About a year ago I had the wonderful opportunity to sit down with David Morgan, the author of Get the Skinny on Silver Investing. After covering all of the reasons one should, at least, consider a portion of their portfolio for precious metals, I had to ask: Should we sit on this metal until SHTF, or should we play it in the market, exchanging it for dollars as the price of the metal hits its peaks. As you know many gold and silver dealers sell you the apocalyptic story at times to convince you you’ll need the metal to purchase your dinner one day!
David Morgan had the answer. There’s no reason, with enough physical bullion accumulated, why you can’t do both. Stash away a portion of your investment for the future, whether it be for a severe economic collapse, or for your children’s college fund some day down the road (although with inflation these days that is scary to think how many ounces of gold it would take to pay off those four years). Keep this long term stash in a well-protected safe. For the other portion of silver you’ve allocated for trade, watch the market. It can seem sometimes, with our monetary policy, that there is never a good time to sell, however if you are in need of dollars and see silver spike up, flip some into cash. The best advice any investor can give is don’t get yourself into debt. Use your physical bullion wisely and you might make it out of this economic calamity with both socks on.
There is no specific amount to guide you on how much should be long-term and how much short-term, but that is because everyone’s investment outlooks and goals are a bit different. Find out what works for you.
Happy buying (and selling I suppose),