If you are just beginning to stack silver and wondering where you should start – I have some no bull advice for you. There are a lot silver gurus and experts out there preaching their book. Be careful. Even though most of the silver stackers sincerely want to help the beginners very often their advice is confusing and not suitable for people who are just starting. Here’s some words of wisdom from someone who started silver stacking a few years ago without knowing what he was doing and who had to learn everything the old trial and error way:
- Start with a budget. Make sure you have an appropriate emergency fund (yes- keep it in fiat currency). Make sure you don’t put all your investments into silver. Diversify your investments: contribute to your 401k and IRA, buy some gold, stocks, land, and real estate. Consider paying your mortgage down and improving your health. You don’t know what the future will be like. Buy silver with spare money, the money you can afford to put away for a long term. Good strategy would be to cut something out of you budget and invest the saved expenses into silver. For example: how about skipping buying lunch at work, cutting down on drinks and smoking and buying one silver coin every Friday?
- Start small and buy a little bit every few weeks or every month. Don’t spend all your savings on silver. If you have an emergency and need cash you might be forced to sell your coins during the price drop at large discount. Emergency always comes when you are least prepared.
- Don’t get gold or silver rush. Holding gold and silver coins in your hands will cause a lot of emotions. You will get an urge to go out and buy silver with everything you have. Contain yourself and stick to the budget.
- Stay away from fancy stuff. Do not buy numismatic coins or graded coins. Also do not buy private mint rounds and medals. Build the core of your silver stack with the most popular and recognized coins in the country you live in. After you build up the core of your stack to a comfortable size you can start playing with less known kinds of coins and bars on the edges. In the beginning stick to the well known bullion coins.
- If you can, try not to buy on EBay or Craigslist. There are lots of fraudsters out there. The best place to buy coins is your local coin shop. If you don’t have one in the area, there are a lot of reputable online dealers on internet. Shop around, compare prices and shipping costs, take advantage of sales and promotions. If premiums seem too high on the coin you want, look for another one or wait for the premiums to come down. Don’t be in a rush – be patient.
Start small and simple. Buy a coin every week and your stack will grow faster than you think. Have fun stacking!