These are the most frequently asked questions that I get. In Phoenix, I spoke from memory on the following topics, and my answers went something like this:
Before I get started, let me introduce the topic of Silver with one argument on why you need silver. If you look at a 600 year inflation adjusted price chart for silver, silver is basically free today. In fact, the form of silver in silver dimes is below what it would cost to mint them today even if you made 200,000 of them, which would be about $2 per dime, and the cost would be the same if you privately minted zinc or copper, and you can get those dimes for $1 today, which means that the underlying silver is free. It does not get any cheaper than free, so silver is the best value that there is, and I really don’t need to say anything more than that. But people have plenty of questions about silver, either just before they buy, or as they accumulate, and these are the popular questions people ask me.
What is the proper allocation / HOW MUCH silver should I buy?
I had 20% of my assets in silver, as a protection to balance the risk of the silver stocks. Eventually, that allocation rose to about 70% of my portfolio, because the stocks did so horribly.
Having silver, for me, was great insurance. I would now recommend that people put as much into silver as they are comfortable with, up to nearly 100% of your assets, but not all, as, of course, you need cash to buy things.
Won’t high precious metals prices bring chaos to society?
High precious metals prices bring civility, not chaos.
When precious metals prices are manipulated too low, that is the cause of the chaos we see today.
When silver prices are too low, it destroys the mining industry. The mining industry for gold and silver create by byproduct metals that modern civilization needs to thrive, such as copper, zinc, molybdenum, lead, and all sorts of other metals that are found as byproducts of all sorts of mines.
If very wealthy investors are not allowed to buy silver, they do other more dangerous things to the world economy, such as trying to corner the copper market which causes even more chaos with wild price fluctuations that destroy capital investments, and turn investors into gamblers who try to chase the latest investment fad, rather than getting down to productive enterprise.
Even worse, investors may try to corner the food markets and hoard excessive amounts of food, which can cause many other less well off people around the world to begin starving.
High precious metals prices increase the value of the existing stock of precious metals, and thus, create capital value. And unlike paper money, silver and gold cannot be created to excess.