Saturday, July 23, 2011
Q&A With The Doc: A Concerned Wife
Hey silver doctors, here is where my wife and I are at. We are sitting on an excess of 6 figures in gold and silver. We do not own a home because one is provided for us through the company. Of course when we retire the home would no longer be available. The only debt we have is a car payment. We still have a lot of cash in savings but should we buy more silver/gold? We have a good income and live very comfortable, however watching our cash lose value every year has caused us some concern. My wife is very concerned I am going to spend everything on gold/silver. I would highlight the word SPEND because I do not feel I am spending anything when I purchase gold/silver. Your thoughts...
And we just received this question on the same issue this afternoon from an anonymous reader:
After only finding this invaluable site a few months ago I have certainly learned a lot. Today I was just trying to find a place to post the exact same question.
I live in Canada and my husband and I are just newly retired, like you, no debt and house paid, but money is tight.
I quickly came to see the light on this site, that counting on fiat money to see us through retirement was a big misconception.
What I need to know is what % of your liquid assets should you be changing to silver and gold.
I'm understanding here that it is safe to convert most of your retirement money to silver and gold, leaving only what you need to live on now and in the near future in fiat.
I have been pulling money from our Registered Retirement Fund to buy silver and gold, and my husband is moaning about how much fiat money is left.
What I would like to know is why so many "finance people" are saying that you should not have anymore than 15 to 20% of your liquid assets in precious metals. The highest quote I have ever heard was, not more than 50% .
Here I am understanding, change all that you can to silver and gold.
If this is right, please, "Silver Docs" or "Someone", give me a push so I won't feel so shaky doing this when my husband is telling me I am making a mistake.
We have been receiving numerous such questions, that are very similar to a question we just addressed on the site here:
For my answer, we'll compare our personal situations.
Several of the silver doctors personally have over 6 figures in physical gold and silver as well, and yet continue to exchange every paycheck (after expenses of course) straight into physical silver and/or gold. (i.e. we are 100% in gold and silver, and continue to accumulate and add to our positions with each paycheck)
We believe there is no concern about limiting silver and gold holdings to a certain percent of your portfolio if you are convinced it is the right trade. If you are convinced silver and gold will provide the absolute best protection from dollar devaluation, while simultaneously offering the biggest upside potential vs. other real assets, why would you limit your exposure to your protection and gains to 10-20% of your portfolio as most professional investment advisers recommend?
The best investment is being 100% on the right side of a long term move, and holding on to your positions for most of the move!
You are correct that you are not spending fiat cash on gold or silver. You need to lovingly explain to/teach your wife this concept- that you are not spending but SAVING in a more trustworthy vehicle than the US dollar. (Perhaps explain it to her this way: If you take a family trip to Mexico, walk up to the foreign exchange counter, and exchange $1,000 US dollars into Pesos, did you just spend your $1,000? No, you exchanged it for an alternate currency. You will spend it on food, drinks, excursions, etc.)
Your spouse needs to understand that you are SAVING your money in a stronger currency (silver) than the US dollar, just like when you get home from your trip, you would not keep your savings in Mexican Pesos, you would exchange leftover Pesos back into US dollars.
As I recommended to the reader yesterday, pull up a 10 year USDX chart, and 10 year silver and gold charts priced in US dollars and show them all to your wife/spouse.
She needs to understand that gold and silver are MONEY and are in long term bull markets vs. fiat currencies, real estate, and other tangible assets, whereas federal reserve notes in your bank account are DEBT that is being rapidly inflated away, and will continue to do so until the US gets its fiscal house in order (or has it placed in order for it by the market).
Help her understand that gold and silver are in long term bull markets, and will likely be much more valuable in terms of purchasing power vs. other real assets (such as future real estate when you retire) in the next 5-10 years than will be the cash inflating away in your bank account.
Your fear should be in keeping assets in fiat currency when the Euro/US currencies are in the process of collapsing.
Hope this helps.
Posted by The Doc at 4:48 PM