Summary of Inflation and Deflation the United States

[webmaster]

Subject:Summary of Inflation and Deflation the United States
By: David Morgan, Silver Investor

Overview: The following is an excerpt from the March issue of The Morgan Report. This followed a lengthy discussion of how silver and gold both performed during inflationary and deflationary periods. Most of what I wrote was based upon the work of Roy Jastram and his work on Silver the Restless Metal and the Golden Constant.

Link: http://news.silverseek.com/SilverInv...1246656311.php

[maplesilverbug]

"The only alternative currencies that I know of that have held up well are, of course, gold and silver. I do believe you need both. ...you don’t need much more than a 10% or 20% protection in order to be well protected if things break down quite substantially for you to come out of this in very, very good condition.

On the other hand, I know many of you are what I call metal heads, like me, and you prefer a higher weighting than that; of course, that’s your personal choice. I’m not going to advocate much more than, say, 20% for most people." -- David Morgan


How do YOU stack up against Morgan's asset allocation/net worth recommendation of 10-20% in PM's? Compare Morgan's thoughts to those of say, Jason Hommel, "If you want to sell your home, and buy silver, you will be a very wise..."

(I would guess the average North American wouldn't have much more than 20% equity built up in their home...so perhaps they are both saying the same thing...?)


Personally, I sit at 15%, but my ounce goal would put my PM holdings (both silver and gold) at 28% net worth, which I would be very comfortable with (ie. mentally at ease!). I don't think having an extra 8% in PM's in such f*cked-up economic (and geo-political) times such as these overkill. Can always lighten the load at a later date.

I consider myself a semi-"metal head" and can very easily see the value of holding cash to pick up assets that have (or will be) considerably devalued today and in the near future. But that's the only reason to hold any large amount of cash instead of PM's.

[maplesilverbug]

"The only alternative currencies that I know of that have held up well are, of course, gold and silver. I do believe you need both. ...you don’t need much more than a 10% or 20% protection in order to be well protected if things break down quite substantially for you to come out of this in very, very good condition.

On the other hand, I know many of you are what I call metal heads, like me, and you prefer a higher weighting than that; of course, that’s your personal choice. I’m not going to advocate much more than, say, 20% for most people." -- David Morgan


How do YOU stack up against Morgan's asset allocation/net worth recommendation of 10-20% in PM's? Compare Morgan's thoughts to those of say, Jason Hommel, "If you want to sell your home, and buy silver, you will be a very wise..."

(I would guess the average North American wouldn't have much more than 20% equity built up in their home so perhaps they are both saying the same thing...?)


Personally, I sit at 15%, but my ounce goal would put my PM holdings (both silver and gold) at 28% net worth, which I would be very comfortable with (ie. mentally at ease!). I don't think having an extra 8% in PM's in such f*cked-up economic (and geo-political) times such as these overkill. Can always lighten the load at a later date.

I consider myself a semi-"metal head" and can very easily see the value of holding cash to pick up assets that have (or will be) considerably devalued today and in the near future. But that's the only reason to hold any large amount of cash instead of PM's.

[What is Truth?]

Originally Posted by maplesilverbug

"The only alternative currencies that I know of that have held up well are, of course, gold and silver. I do believe you need both. ...you don’t need much more than a 10% or 20% protection in order to be well protected if things break down quite substantially for you to come out of this in very, very good condition.

On the other hand, I know many of you are what I call metal heads, like me, and you prefer a higher weighting than that; of course, that’s your personal choice. I’m not going to advocate much more than, say, 20% for most people." -- David Morgan


How do YOU stack up against Morgan's asset allocation/net worth recommendation of 10-20% in PM's? Compare Morgan's thoughts to those of say, Jason Hommel, "If you want to sell your home, and buy silver, you will be a very wise..."

(I would guess the average North American wouldn't have much more than 20% equity built up in their home...so perhaps they are both saying the same thing...?)


Personally, I sit at 15%, but my ounce goal would put my PM holdings (both silver and gold) at 28% net worth, which I would be very comfortable with (ie. mentally at ease!). I don't think having an extra 8% in PM's in such f*cked-up economic (and geo-political) times such as these overkill. Can always lighten the load at a later date.

I consider myself a semi-"metal head" and can very easily see the value of holding cash to pick up assets that have (or will be) considerably devalued today and in the near future. But that's the only reason to hold any large amount of cash instead of PM's.

I like your way of thinking. I'm even higher than you based on the percentage of my net worth in PMs. We may both wish we had put more of our holdings into PMs someday. But how many of the recent unemployed who have sunk everthing they own into PMs at a higher price then they can get out of them now are wishing they held on to some cash instead?