Stacking Silver 101

Customers ask me, “Should I put some money in silver?” How do I go about it? How much do you buy? Where do you get it? Well, today we’re going to talk about some of the basics of stacking physical silver. So whether you are a beginner to silver or an experienced stacker, the dos and don’ts are guidelines for everyone.


Stacking silver means buying and holding physical silver, bullion, and coins as a long-term way to store value and grow wealth. Beginners must familiarize themselves with the different types of silver available and understand the premiums associated with each variety of silver. For the newbies, a premium is the cost added to or subtracted from the spot price when you’re buying and selling.

There are some Key points to know about silver varieties. First, silver comes in various forms, such as bullion, coins, and jewelry. Silver comes in different purities such as sterling silver, 92.5% fineness or greater, fine silver such as 999, and 90% found in pre-1964 dimes, quarters, half dollars, and dollars. Fineness or purity directly affects its value. Knowing the different types of silver is very important to make an informed decision when you’re buying or selling. Whether you’re new to silver stacking or an experienced collector, knowledge of the different types of silver will make it more fun and ultimately help you build your investment and collection.


Once you understand the fundamentals, you can start buying. A good way to start is by acquiring some small denominations like one-ounce silver rounds or bars. One of the most important things I’ll say, probably more than once, is having a plan. Your purchasing decisions need to be smart and consistent with your plan. Diversify your stack with various forms of silver. This helps minimize the risk and enhances the potential for a better return.


Include different types of silver rounds, silver bars, ounces of silver, and silver bullion coins. Mix it up with some 90% dimes, quarters, and half dollars. It’s all silver, just in different forms and purities. Don’t be afraid to buy varying denominations: half-ounce, one-ounce, and five-ounce increments. This gives you liquidity. Which is important if you decide to cash out a small quantity of your stack.


Follow the spot price of silver on an app. I recommend KITCO, which is the index most used by many dealers. Market awareness helps you understand when it’s better to buy so you get the best deal. In a perfect world, we are after the “dips.” Those are short periods when silver price trends below its normal path, creating an opportunity to buy. 


Set a budget and try to follow it. The key is to avoid overspending. Work with a local reputable dealer. This is essential to guarantee the value and authenticity of whatever you decide to buy. Spending less on a more frequent basis is the best practice and allows you a better cost average of your stack. Very important.


A lot of people ask, what are the advantages of buying silver? Well, physical silver is a tangible asset at a reasonable price (for now) with long-term growth potential and value. Silver and other precious metals have been around for thousands of years and will likely remain part of our economy and trade for years to come.

Every day we hear about the collapse of financial institutions, the weakness of the dollar, problems with the economy, and so on. Owning silver bullion gives you a small hedge against inflation and economic uncertainty.
 

Silver is easily recognizable and can even be used for trade or exchange. In some states, it has been declared a legal form of currency to buy anything from a car to a house.
     

Stacking silver can enhance your financial security and give you peace of mind for your future. With part of your portfolio invested in silver, you’re lowering your overall risk and boosting the stability of your wealth.


When buying silver to stack, it’s important to understand ALL the facts that can impact your investment.

Happy Stacking!