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How Much Gold & Silver Does a Person Need? Cheat Sheet

How Much Gold & Silver Does a Person Need? Cheat Sheet
so when will we all have enough

gold

and

silver

i think that the only way to solve this is with math okay so we're going to talk about how

much

gold

and

silver

a

person

really

need

s this is a topic that i've covered before a few different ways but we're going to look at it from another angle today and all i can ever really do is tell you how i approach it

person

ally but we're going to add some data and we're going to add some math so that you can play along i think that that makes this topic a lot more interesting so when i first got started buying

gold

and

silver

i always wondered how

much

i

need

ed as if there was a set number that i could get to and then i'd be done i'd move on to something else now it's turned out to be a little bit different it's turned out to be more like a case of i

need

whatever i have plus a little bit more and at some point though it gets to be a question of how

much

is too

much

and that version of the question that's more complicated if you want an easy answer there you have too

much

if what you're buying is preventing you from covering other

need

s so the reason i like this topic is that it shows the utility of precious metals and it leads to plans we're answering a bunch of questions like why would a

person

buy

gold

or

silver

in the first place what can you do with it how fast should you be buying how

much

should you be buying what should you be buying all of those questions get answered and i told...
how much gold silver does a person need cheat sheet
you that i was going to throw on some data and some math well i'm also going to throw

silver

into the question and i'm going to tell you why i see

gold

and

silver

differently why i don't talk about

silver

much

and then we'll get into that actual data and show the math to help explain why i use the numbers that i do and then how you can determine your own this is a little like answering how

much

savings you

need

for retirement and that's going to be different for everyone but i still see a lot of those recommendations online for somewhere around a million dollars that's based on average household income here in the us and that might be nowhere near which you

need

but if you understand the data and the math that they use to get there or you can work out your own so before we get to that before we get to the math we're going to start with

silver

that's actually what i did i bought

silver

before i bought

gold

it used to be a lot of fun to pick up american

silver

eagles and i don't mind admitting that it was a little bit of a disaster plan for me i'm not a doomer but i liked red don as

much

as the next

person

i'm talking about the original of course not the remake so the idea of having those smaller increments like a one ounce

silver

eagle that seemed to make sense for quick use and some kind of disaster power gets knocked offline in a storm or russian paratroopers start floating out of the sky whatever the scenario you'd have a...
how much gold silver does a person need cheat sheet
hypothetical unit of exchange at the mom and pop convenience store if the normal transaction model was having issues extended power outage whatever the case that's the idea so i think that somewhere along the way the fun of those eagles wore off a little bit i guess but they do still make sense i just don't have many left i used to think that it made sense to have say 100 ounces of

silver

and i would have said 60 ounces of that should be in american

silver

eagles but i

person

ally got a little bit aggressive i sold them all down during the

silver

squeezes people were just willing to give so

much

for them i think i got a little carried away so today i have like 20 ascs and then a few 10 ounce rcm bars i do have some random

silver

coins as well but nothing beats an eagle here i don't care what anybody says and i guess i just don't have what i just said would have made sense now mostly i got tired of

silver

and if you're into it i'm not trying to rain on that parade for me i've just been focusing the contingency plan on bigger potential disasters for me this is not about apocalypse planning i'm not doing this because i feel the economy is in flames about to fall over a cliff leaving us in a stone age again my planning just looks at the low level bad guys like a recession that could potentially cut my income or a health issue that i

need

ed to take some time off for or really any number of things that might last more than a few months it could be a...
how much gold silver does a person need cheat sheet

person

al issue or it could be the whole economy maybe the whole world is on fire maybe it is falling over a cliff i'm planning for the more likely issues but the end result is the same so if you put the two together

gold

and

silver

i do think that we can come to at least a guide for how

much

a

person

should have so i'm going to get that basic data out here in a moment i'm going to put the math out we can't call this financial advice but we can consider it practical we're covering ourselves for practical

need

s and practical time frames three months minimum expenses six months one year two years whatever pretty straightforward so the average household monthly expenses here in the united states today is somewhere in the 5200 range that is a current number now when i first started planning around the idea of covering possible monthly expenses i didn't think that it was likely that i would lose all of my income and the average monthly expenses here in the us at the time was a lot closer to four thousand dollars at least that's what i found so in my head i always thought of an ounce of

gold

as something that could subsidize lost income for a month again not cover all the expenses but get me through it and i always thought that three months would give me enough time to figure out how to recover so three ounces of

gold

that was my first goal that was my first backup fund and then 100 ounces of

silver

well that was my short-term disaster fund now if you...
wanted to cover the entire month of expenses over a specific length of time you'd have to figure out what your expenses are if it was 5 200 like the u.s average then you'd be looking at more like three ounces of

gold

if you consider today's prices so that's a lot different you can do that math pretty quickly for me selling

gold

requires a pretty big event i'd use cash savings for typical things so i think of it more as subsidizing that tough stretch than i do fully covering an entire month of expenses and like i said at one point i thought three ounces of

gold

and 100 ounces of

silver

took care of all of that but over time the number for

gold

has increased

silver

for me well it stayed about the same as my expenses have increased or at least as i have been paying more attention to it i've switched my formula to two ounces of

gold

per month and i felt like i should have a longer period of time covered i've gone from three months to six to a year and now i'm at two years so two years 24 months times two ounces that's 48 i've rounded it to 50 but

silver

has really fallen out of that mix for me i still like the idea of having that hundred ounces of

silver

but where

gold

went from three to six to twenty four to fifty

silver

is still more that disaster metal for me it's more of a tool that i'm unlikely to use i hear the idea of

silver

being used for barter if you think that's realistic i'm not going to try to talk you out of it...
but for me i think

gold

fits the backup fund idea a lot better now if you look into how

much

money that you

need

saved for retirement the people who are actually qualified to make a recommendation typically base it off of your current income in one way or another i must recommend saving 12 times your pre-retirement salary and that's assuming i guess that you don't slow down on your spending maybe that's accurate probably it's not but you can then break that down to how

much

you

need

at certain ages so that would be like having one times your income at 30 three times your income at 40 six times at 50 and nine times by 60 and then by the age of 67 which they use as the retirement age you would want to have 12 times your salary saved up now just to cite where i get that information from fidelity is one of them but it comes from a lot of different retirement planners i am definitely not one of them but i think we can use that as a base now back to the backup fund if you don't burn through it it effectively becomes part of your retirement savings so if we use that 50 ounces that i mentioned is my backup goal that's roughly 90 000 at today's prices and if you use the average household income again the average in the us is right around 90 000 well you start to see some of those strange coincidences in our math we'll come back to that though so ninety thousand dollars times twelve is one million eighty thousand dollars and if you see a recommendation...
that you should have a million dollars in savings for retirement well that's where that number comes from so just assume that you did not use your backup fund and if you were to roll that into your retirement savings all the

gold

and

silver

you had and you had approximately 50 ounces of

gold

or comparably valued mix of

silver

and

gold

that would be roughly eight percent of the savings

need

ed to retire that's if your income matched the ninety thousand dollar average here in the united states the math there was just the one million eighty thousand dollars versus the ninety thousand dollars value in

gold

now

person

ally i think eight percent is high some people think it's low but using that figure and applying the financial advisor model of having enough savings for retirement it works out like this as far as how

much

gold

you should have now you would want to have four ounces of

gold

at age 30 you'd want to have 12 ounces of

gold

at 40 24 ounces of

gold

at age 50 36 ounces of

gold

at age 60 and then 48 ounces of

gold

at age 67. now the math there is just your income times point eight if you wanted eight percent divided by eighteen hundred dollars which is what i'm using for the price of an ounce of

gold

and then the multiplier for your age it seems complicated but it's not i'm going to add some of this into the description to make it a little bit easier i know that this is nerdy stuff dropping math on the topic of

gold

and

silver

but i do think...
it's interesting the variables there that we were talking about they're just your annual income the percentage of savings that you want in

gold

and then the general price of an ounce of

gold

now i also think that it's pretty interesting how the savings calculator plays out at those various ages because that's something that we don't talk about a whole lot here and it's bizarre that we actually get pretty close to the way that i was thinking about it in terms of covering months of expenses the fact that they line up by retirement age makes me think that maybe it makes pretty good sense it's like using that common core math and magically you come together with the same answer when you do math the normal way as for having eight percent of your savings in

gold

or five percent to ten percent i've

person

ally never really agreed there i see it as having more of a specific purpose than just being some percentage of my savings i still like seeing those recommendations though and i think that we can call it good there i think if we take this any further we get into advanced calculus territory nobody wants that so let us know in the comments how

much

gold

and

silver

that you think a

person

should have a percentage of savings if you agree with that idea or just how you approach it in general let us know and while you're in the comments be sure to hit the like button if you found any of this interesting make sure you're subscribed with notifications...
turned on if you want to see more on the topic and if you're still here thanks again for watching i always appreciate your time take care you