Silver and Gold, Silver and Gold, Everyone Wishes for Silver and Gold...

Welcome was given to Mr. Stillman's opus joy this week by very special guest Richard printer really is a financial advisor in the Charlotte Metro area known Richard for five or six years now learn a lot from him in several aspects of life is but a financial advisor for a long time, but before that chiropractor's I've learned a lot about the healthcare world from Richard.Richard, thanks for being here buddy, not a problem, quantity of service.

I know that one of the things that you're big on is precious metals, so I wanted to get your perspective on several questions that I have in that realm. I'm not necessarily a huge proponent of precious metals.

I'm not opposed to people having some exposure or some percentage of their net worth invested in gold or silver or something like that but I thought to be helpful for you to kind of explain to us first of all how you recommend. People think about precious metals as a part of their portfolio. Why is it a good idea to have some exposure there. We I think most people are aware of the word diversification and when they think of diversification. They think making sure that they don't have all their eggs in one basket and when it comes to investing, there are five asset classes there is stocks.

Bonds, there's currencies, there's commodities and there's precious metals, so those are the five different asset classes and true diversification would be diversified into those five asset classes and then diversified within each asset class that would give you the ideal diversification. If you're looking for to protect you against all the potentialities out there now. Right now we live in a world that's in deep, deep debt.

Your worldwide debt United States government debt.

There's a lot of debt out there and in the paper the paper money that that we used to do business to engage in commerce. That money is just basically a piece of paper with ink on it really does have any value other than the value given to it by your government, and so throughout history, or at least since the. The advent of the Federal Reserve you've had a devaluation of that currency and also a $20 gold piece back in. You know, 1915 bought a good quality suit and today a $20 gold piece still buys a good quality suit. So the $35 an ounce versus $1200 an ounce. You can see that gold actually retains its value purchasing value over time. But there have been times where Christ he sees economic financial crises have occurred and haven't precious metals in your portfolio makes a big difference in terms of maintaining your purchasing power. Now if you're retired and you retired with $1 million and we have a devaluation of our currency over the next 10, 15 years of 50%, 15 years from now your lifestyles in a change so bite by allocating a portion of your assets into precious metals.

You put yourself in a position where you your your protecting against that the valuation that debt enhanced evaluation that may be common and you put yourself in a position where you would maintain your wealth to maintain your purchasing power. I think it's a good idea to have a small portion may be a five to perfect 10% allocation of your growth portfolio in precious metals so that you can protect against that potentiality. Now when it comes to actually purchasing precious metals. There are several ways you can do it you can own physical gold or silver that you have in a safe somewhere you can own precious metals that is stored somewhere else. You can invest in funds that, by precious metals, you can invest in companies that do things like mining and things like that so how do you recommend that people go about actually purchasing precious metals. If that something they want to do depends on the individual. John you know if you have a day trader, then certainly there's a number ETF's mining stock that you cannot trade on a regular basis, but primarily from my clients. What I like to do is just have a portion of those assets in hard asset. The real metal and I like that metal to be stored at the Delaware depository in Wilmington Delaware so that when the time comes to sell it.

We just simply have to make a phone call and move that that that metal. Otherwise, if you take possession of the metals which I don't have a problem with the small amount being in your possession, but a large amount you've got a created insured ship it and by the time he gets where it needs to go. It needs to be assayed. They need to verify that it's real. By that time the opportunity sell may have just disappeared so we use a custodian called equity institutional out of Ohio. They allow for a precious metal portfolio. I have a relationship with a precious metal broker.

I don't actually buy the metals myself. And then when I do is I am an interested party on the account. There's no advisory fees on that account is simply a a a storage fee and an account fee on an annual basis. So you're looking at hundred and $80-$230 a year and you buy the real metal now.

Right now I'm recommended. People buy silver, you certainly can buy gold.

I think silver has more upside potential so I'm recommend silver but now they have the real metal. We start out with thousand ounce bars hundred ounce bars and then we do that silver around silver rounds are a lot cheaper to have a lower premium than you intended actual coin like a saint, like an American Eagle silver dollars, so you might have a higher premium on at Eagle versus the silver ramp.

That's the type of stuff that we buy for clients and we store it at the Delaware depository through equity institutional who is the custodian, I think a lot of people they think about you using precious metals as a hedge against everything so the collapsing around them. They think of I had in gold coins and if something happens to the world economy. There backpacking around the Chattahoochee National Forest with a backpack full of gold. But that's not really the idea right. You're truly just using it not as a something that you can use for actual currency. If everything goes to hell in a hand basket will you know gold is not an investment. You know you don't earn interest on gold. You don't earn dividends on gold and gold is just not an investment its money. Okay, you know, so any we've had situations in the world in history where the currency has collapsed.

It has no value. You look at the Weimer Republic you look at the people flee inside of South Vietnam and make these things happen every now and then.

You know, I mean the Brent with the money the system that we are functioning on today.

You know, began after World War II.

You know that 67 years old. You know it doesn't last forever.

Things change and we are on the precipice of a financial reset self no yeah I don't have a problem with you having you know if you gold coins at home and some silver and I prefer that you buy junk silver maybe 1/8 of a bag which is about 500 old quarter version of the 1964 quarters that have 90% silver.

You have those in your possession. If you need to barter at some point in time, temporarily, in the long run. I don't see that as being a a viable concern. What were trying to do is were trying to maintain our wealth so I have $500,000 today I want $500,000 in purchasing power in 10 years and to do that precious metals will help maintain that in the event that we do have a situation where devaluation occurs in a more accelerated rate. So now you don't want to have $100,000 $200,000 of gold and silver stored in your home don't want to do that but working to do was run away until the ratio between silver and gold approaches 25 to 125 ounces of silver to buy 1 ounce of gold that will be our sell signal and will get out of precious metals at that point take those dollars and put them into a secure location would you say there are any common mistakes you see people making on the precious metals front in terms of how they purchase, how they handle the buildings that they have is anything that you see as sort of a recurring issue absolutely no don't buy off the TV ads mean a lot of those institutions haven't been selling gold and silver but for the last 70 years. You want to buy from a very reputable dealer to guarantee that they buy it back.

The you do want to make sure they been in business for a long long time that they know what they're doing today know how to position your gold and silver to maximize benefit and don't buy proof semi-don't don't sit there, buy things that are going to have a higher premium. You know, like, like for example you can buy a St. Gardens or a liberty $20 gold piece. We call those numismatic coins of the collector coins to pay a significant premium above the spot price on gold to get that coin, that doesn't mean you shouldn't buy them if you like the collectible aspect of the coin is sure go ahead and do that but you're gonna pay know another three, four, $500 an ounce for that point when if you bought an American Eagle. The premiums are much much lower. And if you buy bullion if the premiums are much much lower show whenever you buy metals you want to know what the premium is that day, and whether or not that type of metal is is the appropriate to buy what we have found recently, especially when rebuying silver is that your thousand ounce bars are hundred ounce bars and a silver rounds are as close to spot prices possible for when you buy metals you want to buy is close to spot prices possible. And then you want to make sure you store it properly and then you want to make sure what the signal is for selling those metal that's basically the approach you want to take Richard Petrilli, founder of Carolina retirement resources in the Charlotte Metro area. A good friend and a wise fellow. I have to say Richard, always good talking with you, my friend.

Thank you. Hopefully that some good insight for you and will talk to you again very soon. Right here on Mr. Stillman's opus. Have a great week