Update. For a more ambitious strategy of storing purchasing power as silver bullion, it works out like this:
Spot price as of now, about $21.21
Spread: about $2.25
So if I bought for $21.21 + half the spread, I’d pay 22.36/oz, and sell (in the event of no default) for 20.11, so about a 10% loss on whatever I invested. Probably more, given the small volume I’d probably be buying. On the other hand, I’d need that 10% a lot less in the absence of a default than I would need the inflated purchasing power of that silver if a default did happen.
Only if I’m still employed and the checks I get still clear.
Moreover, we’re talking about a worst case scenario. There can be no overkill. I have to take every opportunity and exploit it to create greater opportunities until those I am responsible for are no longer in immediate danger (or at least the greatest risk to them again becomes old age, at which point my efforts no longer need to be split between the two problems).
So if I end up with surplus buying power, I should find something to invest in. I keep reminding myself that a recession can also be a great buying opportunity if you can manage it.
Maybe $50 tops?
Update. For a more ambitious strategy of storing purchasing power as silver bullion, it works out like this:
Spot price as of now, about $21.21
Spread: about $2.25
So if I bought for $21.21 + half the spread, I’d pay 22.36/oz, and sell (in the event of no default) for 20.11, so about a 10% loss on whatever I invested. Probably more, given the small volume I’d probably be buying. On the other hand, I’d need that 10% a lot less in the absence of a default than I would need the inflated purchasing power of that silver if a default did happen.
If you hold fixed-rate debt (ie, mortgaged house), hedging against inflation is overkill. Just enjoy paying off your mortgage with inflated dollars.
Only if I’m still employed and the checks I get still clear.
Moreover, we’re talking about a worst case scenario. There can be no overkill. I have to take every opportunity and exploit it to create greater opportunities until those I am responsible for are no longer in immediate danger (or at least the greatest risk to them again becomes old age, at which point my efforts no longer need to be split between the two problems).
So if I end up with surplus buying power, I should find something to invest in. I keep reminding myself that a recession can also be a great buying opportunity if you can manage it.