Silver Stacking Fundamentals: 7 Tips for Silver Stackers
Silver stacking is a term you’ll see more and more when reading about gold and silver investments, as the idea has been gaining popularity for some time. This phrase can be used to describe a person or an activity and it’s all to do with the accumulation of silver precious metals. In this article, we’re going to explore just exactly what silver stacking is and what it means to be a silver stacker. Read on to find out everything you need to know about the wondrous world of silver stacking and discover our top 7 tips to be a better silver stacker.
What is Silver Stacking?
Silver stacking is what precious metals investors call the act of stockpiling silver. People who are silver stackers are those who regularly buy silver bullion and build up their own supply. There are many different styles and techniques to silver stacking, but each dictates a regular increase in silver stockpiles. Often, silver stackers have targets to reach, meaning they wish to attain a certain quantity of silver within a given timeframe.
The actual term silver stacking is derived from the act of storage needed to keep all your silver in order. Most investors stack their silver coins and bars in tall towers, it’s a great way to keep track and display your hard work. Most silver stackers keep their neatly organized collections a secret, however, some choose to share their success with the world. Youtube is a great resource if you want to see some huge silver stacks, and maybe get some inspiration for your own collection!
Why Become a Silver Stacker?
There are numerous reasons a person might want to become a silver stacker. This form of investment has a lot of advantages, and we’ll explain a few now. After reading, you’ll understand why silver stacking is becoming so popular at the moment. The advantages are great and many, while the setbacks are well worth the risk. Here are the most important reasons you should consider silver stacking today.
Wealth Protection
Just like every other physical precious metals investment, silver stacking offers an excellent degree of wealth protection. Due to the current political, social, and economic global climate, there are many who believe the next financial crash is around the corner. There are so many warning signs that paper currencies and fiat money are destined to fail, and the consequences could be dire. Currencies such as the US Dollar are assigned legal tender by a government yet have no real value; they’re just pieces of paper.
Digital bank accounts and the Wall Street stock markets are equally unreliable. All they really represent is a few lines of code; there are so many degrees of separation between investor and asset. When you purchase physical silver for stacking, there’s no third party to get in the way. You can be sure that the value of that metal is wholly yours, and no one can dispute it. Physical gold and silver are much better investments than mining stocks or ETFs.
Choose Your Style
One of the reasons that silver stacking is so popular is that it’s a fully customizable way of investing. Every silver stacker has their own style and preferences, tailored to their own personal goals. For example, some investors who stack silver have a primary aim of pure quantity. They want to amass any number of different silver bars or coins, in the largest numbers possible. Those simply wanting to build their silver stacks may choose to invest in large denominations, such as monster boxes, or just a single American Eagle at a time. Most in this category would receive bullion deliveries once a month, as a way to steadily and sustainably grow their collection.
On the other hand, some silver stackers have a more numismatic point of view. They purchase silver bullion in as many different varieties as possible, with the dual aim of amassing private wealth while building an impressive collection. This style of silver stacking is a sort of hybrid between precious metals investing and coin collecting. It’s generally the more expensive option as rarer variations of coins tend to cost more, but the payoff is also bigger.
No matter what style of silver stacking you go for, you’ll reap all the same benefits. From specialist numismatic coins to solid silver bars, every form of physical silver you buy contributes to a more successful investment portfolio. No matter what, the numerical grams of silver you own is equal to a sum of cash. The value of silver will always be constant because of the demand for the metal.
Reliable and Increasing Demand
The demand for silver gets greater every day. There’s no better time to buy the white metal than now, as the industrial and technological uses grow by the minute. This ever-present demand on silver means you can always be assured of its reliability; it’s easy to sell silver bullion should you wish to make some quick cash. The market for silver coins and bars is large and fluid, with more popular bullion being easier to buy and sell.
Cheaper than Gold
One integral aspect of silver stacking is the visual appeal, there’s no denying that huge stacks of silver simply look fantastic. Because silver is so much cheaper per the gram than gold, it’s easier to amass a larger quantity. Additionally, this means that silver is easier for beginner silver stackers and more accessible to those with less money to invest. The gold to silver ratio is thought to seriously undervalue silver, a fact that smart investors need to take advantage of now.
Privacy Benefits
While there are a few “internet stackers” who choose to broadcast their collections online, the vast majority of investors who do silver stacking do so in private. The potential anonymity and complete privacy of silver stacking are what attract many wealthy investors in the first place. There’s none of the paper trails or third party interference that comes with other forms of investment; once you own the silver, no-one else has to know.
Hyperinflation
No one ever thinks that it will happen to them, but hyperinflation is possible, and it happens. Recond world events should be enough to tell us that nothing is certain; the next economic disaster could happen in the United States. When that happens, all those dollars will be nothing but worthless scraps of paper. Bank accounts and wallets will be worse than empty, but those who have invested in precious metals will have access to easy cash.
7 Silver Stacking Tips
Now you know the basics about what silver stacking is, and why people choose this form of investing, it’s time we share our best advice for silver stackers new and experienced. These top tips can help you get the perfect edge in silver stacking, it doesn’t matter if you’re buying your first round or your 500th. As we explained before, every silver stacker has their own preferred style, so take each of these instructions with a pinch of salt. Each tip can be applied in its own way to your investment portfolio, so make the most of this valuable information.
1. Buy as Close to Spot Price as Possible
All precious metals investors should stay up to date with the current value of their assets. It may seem obvious, but when buying silver bullion, you should aim to pay as close to the spot price as possible. Ancient and numismatic coins are often sold for much more than their silver value, but from an investment standpoint, this isn’t beneficial. By sticking as closely as possible to the value by weight as silver, you can reap the best reward from your investment. In the same way that you should avoid overpaying for silver, be wary of underpriced bullion too. Any silver coins or bars selling for cheaper than spot price should be subject to suspicion.
2. Be Wary of Numismatic Coins
While certain styles of silver stacking do involve buying numismatic coins, be careful you don’t go too far down this path. You risk becoming more of a coin collector than an investor, which while a fantastic hobby, doesn’t offer the same benefits. If your main goal is an investment for wealth protection, the more common a silver coin the better. World-popular silver rounds like the Canadian Maple Leaf flood the market, meaning they’re always available to buy and sell at fair and competitive prices.
The “premium” of a given coin is the amount over the spot price of the metal that you pay. The premium is decided by a number of factors, including the quality and rarity of the mintage. Popular coins like the Great British Britannia almost always have the same premium, just a few dollars above spot price. However, other silver coins such as the Chinese Panda feature a limited mintage, meaning certain coins are much rarer and more highly sought. These coins often sell for much higher than the spot price as they have value above and beyond the silver content. Both of these options make great investments but represent two very different techniques.
3. Make a Solid Strategy
We’ve talked about how there are different styles of silver stacking and plenty of different ways you can invest in this precious metal. Although the options are vast, it doesn’t mean you can just buy whatever silver comes your way. To be a successful silver stacker, it’s vital you have a well thought out strategy, so you can work towards a specific goal with your investments. Every silver stacker has a different motive and end goal, so be sure you know what you’re aiming for.
Most silver stackers do so either as a hobby or as a hedge against inflation (wealth protection). There’s little profit to be made from stacking silver, but it can be an excellent pastime as well as a way to protect your future. However, to benefit from the many advantages of silver stacking, you need to start out with a thought-through plan. Your strategy can evolve over time as you collect more silver, but it’s a great idea to know how to begin.
When you start thinking about stacking silver, consider your personal end goal. How big of a silver collection do you want? What kind of coins do you want to accumulate? How much wealth do you wish to store in the form of this precious metal? The answers to these questions will help you to figure out exactly what to aim for in your silver stacking, and then you can start working towards that goal.
4. Set Regular Targets
As a follow on from our previous tip, it’s a fantastic idea to incorporate smaller deadlines into your larger silver stacking plan. Many silver investors who use a stacking technique have monthly or bi-monthly targets, stating how much silver they wish to accumulate. For example, if a silver stacker wants to accumulate 24 new coins over the course of a year, they need only buy two every month. This helps to spread out investments over a longer period of time, while still working steadily towards your goal.
5. Consider Face Value
Although it doesn’t matter to every coin collector, certain silver investors may want to consider the face value of purchased coins. Those who are hedging their bets against the inevitable global financial crash might prefer coins that have a face value over those which do not. Although the face value of most precious metal coins is much lower than the actual value, the additional reassurance of value might be important to some investors.
The face value of a coin, for example, the American Silver Eagle which is $1, is the legal value assigned to it by a government. It means that in theory, you could walk into any shop and spend this numismatic coin on anything worth one US dollar. While this is obviously not the most effective use of your investment, it provides a little extra backup to the idea of silver coins as real money. Should all fiat money and paper currency fail, you are still guaranteed a payout of a minimum of the face value of your coins.
6. Think Carefully About Storage
One huge aspect of silver stacking you might not have thought about is the storage. One of the biggest differences between silver and gold is that silver takes up many times more storage space, a fact that stackers need to be aware of. One vital advantage of silver stacking as an investment is that you can keep it completely private, so as well as sizeable your storage space should be well hidden.
Some people choose to display their silver bullion, but most prefer to keep their investment secret. If you want to start stacking silver and plan to keep your coins and bars at home, make sure you have a secure facility that’s large enough to house your entire collection. We always recommend keeping the particulars about your silver stacking habits a secret, and only sharing your collection with a select trusted few.
7. Choose Popular Bullion
When buying silver bullion coins and bars, especially when you’re starting out, it’s better to go for more popular options. Bullion coins such as the Canadian Silver Maple Leaf are made in huge quantities at the Royal Canadian Mint, meaning the market is always flooded with these bullion products. The same can be said of coins made by the U.S. Mint; because of the sheer quantity available, these silver and gold coins are always easy to buy and sell.
As you become a more experienced silver stacker, you can start looking at collectible physical metals rather than only bullion coins. However, it’s best to start with an easier investment. Find a reputable bullion dealer to buy your first few products off, and then you can start building your collection. American Eagle coins are an excellent first buy for silver stackers because they’re easily accessible and you can be assured of their value. On the other hand, coins like the Morgan silver dollar are best left until you have more knowledge of non-bullion silver investing.
Silver Stacking Success
If you’re looking for a new way to get into precious metals investing, then silver stacking could be perfect. This method of buying silver bullion products is highly accessible, and any investor with any budget can try it out. The most important advice we have to share regarding silver stacking is to search for the best silver price possible; as a long term investment, you want to minimize the premiums. Avoid sterling silver and collectible numismatic coins to begin with; you can expand to these once your knowledge of silver stacking has improved.
Investors who buy gold and silver will experience huge benefits in the long run; there are so many advantages to investing in physical metals. Silver and gold bullion are among the safest possible ways to store your hard-earned wealth; don’t leave it up to central banks to protect your livelihood.
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