I Just put around $100,000 into Silver SLV. I will explain why not Gold or Bitcoin for this move.
Well howdy there folks and welcome into today’s video so i put a hundred thousand dollars into silver and in today’s video i want to tell you why i went ahead and made that move and i understand um it’s definitely a different outside the box move for somebody like myself right um i’m always very heavily stocks uh you know uh to a lesser extent real estate and to
Even a lesser extent crypto and then some cash right and so for me to put a hundred thousand dollars in silver is definitely out of the ordinary and i want to kind of go through my thesis here on why i went ahead and made this move and i know there’s going to be a lot of questions and i want to answer all those questions questions are going to be why i put it in
Silver instead of gold why not put it in bitcoin right um why not i put it in stock so those different questions so i want to try to address all those in this video here today um i’ve kind of thought them all through and then we’ll kind of go from there and thank you ftx for sponsoring today’s video as always if you guys want to check out ftx get up to a hundred
Dollars in free crypto check out the first link in the description also be pinned comment down there so we’re going to start today’s video is around uh emergency fund okay so everybody should always have an emergency fund i don’t care what your net worth is i don’t care if you’ve got a net worth of a thousand dollars or a net worth of uh you know a billion dollars
You need a you need a like an emergency fund right this is something i’ve been doing since i was like 18 19 years old where essentially this is money that is like last resort money like this is last resort money like you were in a real pickle you were in a real jam and um you need you need that money somehow right and so i’ve always done this in as my wealth grew
Over the last 14 years my emergency fund got bigger and bigger and bigger and bigger right now in terms of my emergency fund um i’ve had to tap into that i would say probably like three different times throughout the last 14 years one time i remember specifically having to tap into my emergency fund was when i was starting my real estate marketing company and
I had no income at that time and it was it was a struggle and i had spent a bunch of money on equipment and you know i had to tap into the emergency fund and so something you should rarely ever touch but every once in a while you’re going to get yourself into a jam it happens to everybody i don’t care how financially fit you are it’s going to happen to everybody
Getting yourself into a gym once in a while and you got to tap into your emergency fund right now in terms of an emergency fund i’ve always kept it 100 cash right like money i could get to very easily right but obviously what i’ve noticed over time is um i think it was ray dalio or somebody put this out there and it was it was it was the honest truth and uh you know
If you’re keeping cash it’s like a melting ice cube right and so if i have a certain amount of money um you know this is not my emergency fund but let’s just let’s just use this as a hypothetical number right let’s say i got a million dollars as my emergency fund which i wish my emergency fund was that big um but let’s say it was a million dollars right well then
Million dollars is obviously over a decade two decades three decades becomes worth much less right what you can buy with that million dollars is you know shrinks substantially over time so this is what led me to the thought process of okay what if i put a portion of my emergency fund in uh either gold or silver right and uh we’ll touch on on why not gold in just a
Minute and so that’s what led me down this kind of rabbit hole in this path of like let me put a portion of that money so if i ever have to touch my my emergency money the first thing i will go ahead and touch is the cash right and emergency money is not like my stocks fell so let me go use this money to buy some more stocks or something like that emergency money is
Literally for emergencies last resort like you’ve got no other choice but to to tap into that money to pay bills or whatever it is right um which is obviously a good example that i had for my real estate marketing company uh situation there right and so that that’s what kind of led me to my rat this rabbit hole and why i put a hundred thousand dollars into silver
Specifically is because i wanted to put a portion of my melting cash into something like silver right now if we look at the purchasing power of the us dollar over time um obviously it’s gone to pretty much nothing over time and that’s that’s natural that’s what will continue to happen and the reason being is the dollar is is meant to kind of be destroyed over
Time because every time we get into any type of financial pickle right let’s call it that what does the fed go ahead and do the fed prints money left and right and so next thing you know your dollar is diluted your dollar is worth less and less and less and less all the time and that’s just what happens right if we just look at since i’ve been on this earth right
I was born in the united states of america in the year 1989 and since 1989 when i was born i was brought into this world the dollar has lost well over 50 of its purchasing power just since i’ve been here okay so the the the truth is the dollar is a melting ice cube um we we all know it right and so it’s kind of like a necessary evil that we all have which is
The dollar right or any euro you could put into that that category as well or any currency for that matter um that’s a that’s a you know a fiat currency it’s it’s a melting ice cube so since i’ve been here over 50 of the purchasing power of the us dollar has been lost right now and also since i’ve been here silver has basically about doubled up in price over time
Right and so not like that’s not like necessarily amazing but still like just imagine you were in the year 1989 when i was born and you had a million dollars and you could either put that million dollars or let’s not say the whole million let’s just say a half million of that million you could either put the half million in silver you could have put a half million
In uh you know uh just dollars right well your dollars basically were decreased by over 50 during that time so your 500 000 is now worth maybe 200 000 something like that right meanwhile you’re 500 000 and silver is now worth a million dollars right and so silver is something that obviously over generations and decades has performed very very well it had two hype
Cycles behind it one was right around 1980 and the other was right after the the financial you know collapse let’s call it and it was kind of two weird hype cycles but for the most part silver’s been relatively stable outside of those two main height periods okay now the next question is why not gold right which i think is a very fair question like why not buy
Gold instead of silver very very fair question right so if you look at what’s called the gold to silver ratio right which is kind of like the premium you always expect gold to trade at a premium versus whatever silver is trading at okay so gold’s always going to trade at a premium higher than what silver’s at now usually traditionally this was anywhere from like
A you know 10 to 20 ratio but recently it’s gone absolutely off the charts in terms of this ratio in terms of the premium you have to pay for gold versus silver you know 40 to 60 i would call it very very normal and you know if you go back further in history it’s actually much lower than that but recently we’ve been trading at about an 80 to one roughly gold to
Silver ratio in terms of the premium gold’s trading at versus silver around 80 roughly okay now on a historical basis that’s insanely high and that’s i would call it fairly unsustainable and so gold compared to silver right now i don’t want to call it necessarily a ripoff but it’s not um it’s not it’s not a good deal if you compare those two together now in terms
Of the mind ratio right now we’re at about uh eight silver uh basically mine for every one gold right so conventional wisdom would tell you should be about an 8 to 1 ratio difference instead of an 80 to 1 difference which is absolutely insane but obviously gold is always going to get that extra premium because it’s gold and it’s not silver right so now obviously
Industrial applications things like that are much more reliant on silver than gold because gold’s too expensive so for evs electric vehicles um you know for solar panels all those sorts of things they’re they’re much more likely to use silver than gold gold’s just not you can’t even consider using that in industrial applications for the most part because it’s just
Too dang expensive so you’ve got to use silver so the moral of the story is you know when it comes to this at least when it comes to i put my money in gold or silver we should get back into normal ranges and i think silver could very much outperform gold over the coming decade or two based upon kind of where things are trading at right now if this was a more if
Let’s say this was a different situation let’s say gold was trading maybe 20 a 20 ratio maybe that’s different situation maybe i i you know put my money in gold but at an 80 plus i really can’t do it i got to go silver in that sort of situation right the next question is why not bitcoin and sometimes late at night i just sit up thinking and i think about wouldn’t
It be amazing like so amazing and i know this is just a dream but wouldn’t it be amazing if there was some sort of crypto exchange that existed out there where folks could buy things like bitcoin ethereum nft stuff like that other kryptos easily securely and with no fixed fees and sometimes i think to myself that must just be too good to be true isn’t it well no
That is not just a dream that is a reality that is ftx us yes ftx us is my official crypto partner and that is a place that you can easily securely buy things like bitcoin ethereum your other favorites cryptos nfts all with no fixed fees and if you check out the pin comment down there they’ll be to a link to sign up directly through my link essentially you don’t
Forget to use my referral code which is holy smokers yes you heard me right holy smokes and essentially you will get a free coin with your first ten dollars traded on there which is pretty dang amazing so check out pin comment down there sign up for ftx us and also ftx thank you for sponsoring today’s video as always and i think this is a very fair question like
Why not put that um 100k in bitcoin because i think the way a lot of people look at it is you know let’s say this is emergency money um that’s supposed to be kept away for you know a period of 10 years or 20 years or whatever it is right a lot of folks would say bitcoin will appreciate much more substantially than silver right i think if you ask anybody that knows
Anything about finance is silver higher or lower in 10 years from now than today i think just about everybody would say higher right i think if you also ask everybody uh you know bitcoin higher or lower 10 years from today i think almost everybody would say bitcoin would be higher as well right and the reason being is that’s the trend over time now when it comes to
Bitcoin the issue with bitcoin is remember bitcoin was created in 2009 right and so bitcoin’s entire life cycle has been obviously in fed stimulus pump essentially right um where we we’ve printed massive amounts of money we flooded the world with qe and all those sorts of things right and so we don’t have generations and decades to go back on and look at bitcoin
Over time bitcoin just grew up into a major asset very recently right in order to be a major asset you got to hit around a trillion dollars of market cap bitcoin just hit that literally last year and so we don’t know what bitcoin is going to become or not become over the next decade or two because we’ve never seen bitcoin in a high inflation environment we’ve
Never seen uh bitcoin in a situation where there’s not crazy qe pumped out there we’ve never seen bitcoin how it’s going to perform when it’s a trillion dollar plus uh market cap right we haven’t seen that yet well we saw it for a very short amount of time and then it went down obviously but we haven’t seen it for a substantial amount of time so bitcoin’s a big wild
Card right this is why i wouldn’t be surprised if bitcoin in a few years from now is ten thousand i wouldn’t be surprised if bitcoin in a few years is a hundred thousand plus it’s a it’s a complete wild card it just doesn’t have that sort of long-term trajectory we can look at and we can say this is how it performed during a deflation cycle an inflation cycle and
And it did this back then and it did this back then you just can’t go off that right now so the way i look at bitcoin is that’s one of those things that i kind of view it the same as a stock right it’s going to be very volatile hopefully you make a lot of money in over a five-year 10-year span but it’s going to be very very volatile and i wouldn’t necessarily con
Consider it like a safe place to park money i know some people do and they consider it um you know like a store of wealth in order to be a store wealth you really have to have generations and decades behind you and so bitcoin can maybe get to that place but i think to put it in the the respect class of a silver or gold already i think is a little little premature
There we got to let things play out a little bit here and see how this really performs over you know the next 10 years in the next 20 years and uh maybe it performs just as well if not better but you know to to to i think rush into a you know putting in that same type of category is i think a little uh disingenuous to two things that have been here for for a long
Long time okay so bitcoin to look at that as like that’s in that’s an opportunity to hopefully grow money over 5 10 15 20 year span not necessarily to beat inflation or not to uh you know be better than the dollar or something like that right now if we go back to the last time we had major major inflation rate now we’re getting to the minor reason why i put 100k
In silver the major reason is what i just shared with you there but a minor reason is we are going through a time period very high inflation we can’t deny that right now in terms of the inflation rate i expect it to slow starting in one month from now essentially but with that being said um they’re still going to be pretty darn high inflation even if the growth
Rate is slowing so the the problem is we could be potentially in an environment where we have rather high inflation on a historical standard for potentially years if not an entire decade we will have to see how all this plays out right and so if you go back to 1970 to 1980 this was definitely a time period where inflation was sky high right sky high during that
Time period and um you know they they did a lot and they tried to bring it down and eventually they got it down but it took a long long time to get inflation down in any meaningful way right and so you went through this massive time period of inflation and how did silver do in that sort of environment right well you silver did absolutely incredible which i pulled
You up here is about a chart from like 1969 to about 1981 and um silver absolutely killed it okay absolutely killed it now i’m not expecting that to happen over the next decade or the next you know even eight years or something like that if my 100k grows in a million i’ll take it i’ll be happy with that but that’s not why i’m doing this okay i’m doing it because
I believe it’s going to hold up better than a dollar over a decade two decades but um you know there’s there’s definitely some truth to the possibility that silver could go through um kind of a beast moment that’s just not why i’m in it but we can’t deny the fact that the last time we had inflation silver did unbelievably well and i mean unbelievably well and we
Are going through the highest inflation period we’ve gone through since that time period i just showed you back in the 70s in the early 80s okay so it’s something to just consider that you know uh the last time we had this type of time period gold and silver did absolutely tremendous right now next question i might i might get is i put the 100k in slv and there’s
A big debate inside the silver community on you know slv versus pslv so the reason i went with slv instead of pslv and i know there’s a lot of like conspiracy theories and maybe some truth some false whatever okay about price manipulation in the silver market and those sorts of things fair play okay and i can make there’s there’s also a manipulation of stock
Market there’s manipulation and crypto there’s manipulation and everything even in real estate there’s manipulation like you have to deal with manipulation that’s just something that goes on in every single market you possibly participate in okay but what we found over time is you know slv holds a lot i want to i want something that represents uh you know silver
In terms of like how the price performance does over time and pslv just does worse uh than than slv does uh in terms of trying to keep track and keep up with silver over time you know this was looking over the past year or so pslv is significantly underperforming slv in the silver price right this was looking at you know basically about the last decade and you’re
Going to notice pslv is far off of slv and silver right and so it’s not really keeping up with the silver price as well as you would want it to and so for that reason i look at it and say i want i want something that really tracks the price of silver right um so and i might buy some silver bars and things like that i own one right now i might buy some more but in
Terms of my main position i i really just want it in uh slv for now okay now diving into the silver community you know when you dive into the silver or the gold community and gold community might be even a little more wild in the silver community you know it’s is wild okay you know you’re going to see stuff like this buy silver before it’s too late you know uh
The world is scrambling for silver why you should double your silver stack now get as much silver as possible it’s a crazy community man silver and gold will perform everything in 22. that might be the most fair target if you really believe that six hundred dollar silver’s like 25 600 target for silver is coming um they they plan to destroy you so you know this
Is when silver will hit 600 you know this is just that that’s the uh that’s a silver community right and so you know you understand that you’re if you are putting money into silver or gold for that matter you are um there’s different groups that have different agendas my agenda is very different than those folks agenda um some do it for doomsday scenarios where
The dollar is worth nothing and no one you know can trade with anything other than silver dollar or gold like a lot of people do it for different things right um i don’t get kind of tied up into that whole thing i’m not i’m not part you know that that’s that own little thing and if silver goes to 600 and my 100k becomes uh 2 million plus cool but that’s not why
I’m doing this okay my simple breakdown at the end of the day is i think it’s a better store of wealth for cash um over 10 20 year span and once again i’m only doing this with a portion of my emergency fund not the entire thing because if i tap into the emergency fund the first thing i’d want to tap is the cash and the last thing i’d want to tap if i ever needed
To if emergency emergency would be that uh silver position essentially and so as emergency money a portion of it put in there um we’ll do better over a 10-20 year span than the dollar in my personal opinion and obviously we’ll see what happens so hope you guys enjoyed this video as always once again if you want to check out ftx sign up for ftx and get up to 100
In free crypto check out first link in the description down there also much love
Transcribed from video
Why I Put $99,000 in Silver By Financial Education
