My Stacking Strategy!

I get asked all the time “What should I stack?” Well, this is really a personal preference and there can be many answers and you will find most people will have their own strategy. As someone who has been stacking precious metals for many years, I will share with you my strategy and advice but please remember I am not a financial advisor nor do I play one online.

There are different philosophies and strategies for stacking and collecting. The strategy I use is called being a “stacker”. A what? What was that? A stacker is one of the types of people who collect precious metals. Bullion, coins, etc. There are also collectors, preppers, and combination of all three. Let’s take a look at these three types:

  • Stacker – Stacks precious metals at the cheapest cost possible
  • Collector – Collects coins and other numismatic items and is willing to pay the premiums
  • Prepper – stacks primarily to prepare for the future and plans for different types of catastrophic failures

Now of course, one person can be one or even all of these but usually there is a primary goal. For me, it is to stack as my as much as I can for as little cost as I can. This is a great way to accumulate precious metals and help to protect your wealth.

One thing you will find after a while is that it can get a little boring just stacking. You need to keep it interesting so that you continue to stack. You also need to stack wisely because you want to buy things that you can later sell when and if it becomes necessary. Even if you end up leaving it as an inheritance, you still want it to be desirable. Even though I said I buy the most I can for as little cost as possible, that doesn’t mean I just pick up anything that is out there. You need to pay attention to the market (what’s hot), buying proven coins and bullion, history, look, etc.

  1. Market. This can be a little tricky but still something to look at when buying. This can help you decide what to buy especially if you are planning to sell in the short-term. Be careful as you can get stuck overpaying for items if you lack experience with purchasing precious metals.
  2. Buying Proven Coins and Bullion. This means precious metals that have proven to be desired and kept their value over time. American Silver Eagles, Canadian Silver Maples Leafs, Silver Britannia’s…really any government issued coins are a good choice and should maintain their value as time goes by. For gold, the American Gold Eagle, Gold Canadian Maples Leafs, Gold Krugerrand’s…again any government issued coins are good to stack. Also, bullion from companies like Geiger, Engelhard, Scottsdale, etc. are good choices and have been proven over time.
  3. History. Both what has maintained it’s value over time and literal history such as Pre-1933 U.S. gold coins. The history can be a great way to stack because it is fun to think about that 1907 $5 gold Liberty US coin (for example) and how it was used. What did it buy? Did someone famous such as a president have it in his pocket? Such a cool part of stacking. Now some people may argue that this is more collecting than stacking. This is true…sometimes. However, if you are buying it as bullion, and not as a numismatic coin, I would classify that as stacking and in previous years, you could get them for the price of bullion. Since the pandemic, the price of these coins have really went up.
  4. Look. I know a lot of stackers would disagree that look is important. As long as you have silver and gold, the weight is what matters. I would say that having something that looks well kept, maintained, and has beauty and luster makes it much easier for someone take their wallet and purchase (if you ever need to sell). Beautiful coins that have that awesome cartwheel effect (light that spins around the coin) are absolutely stunning. I would much rather buy that then something that looks beat up.

So What Should I Focus On?

As a new stacker, I would recommend a 3 tiered approach.

  1. Government Issued Silver Bullion. As mentioned earlier, this is anything issued by a reputable government. The United States, Canada, Great Britain, Australia, etc. These are are well respected and will always have value.
  2. Junk Silver. We haven’t talked about this yet (another blog post to follow). However, this is a great item to add to your stack. Junk silver is also called Constitutional silver and 90% silver. It is any US dime, quarter, or half dollar issued before 1965. There are other variations and 90% versions available however for your initial stack, just focus on these coins from 1964 and before. The great thing about junk silver is there is no more being made AND it is still being melted everyday. That means there becomes less and less which makes it more valuable over time. As of the time of this writing, there are 3 of the big online bullion dealers that don’t even have it in stock. Since it’s no longer made, if someone doesn’t take it out of their stack to sell, there will not be any to purchase. Although this is often overlooked, I think this provides great value.
  3. Gold. I feel it is important to at least get a little gold as part of your stack. Admittedly when you buy smaller sizes, you pay more of a premium but I think initially it is worth getting. Getting some reputable gold coins will be an important part of your stack going forward.

Can I Please have an Example?

Sure, I’m glad you asked 🙂 Let’s say you have $2000 to spend on precious metals. Now, I know that’s a lot but it can be broken down to other amounts as well. Just remember that prices are constantly changing so this may differ depending on spot prices. So $2000…what would I buy with it?

  1. American Silver Eagles. 2 rolls of American Silver Eagles (20 / roll x 2 = 40 total). This gives you a great baseline of government issued bullion and American Silver Eagles are the #1 selling silver bullion coin in the world. Approximate cost: $580 / roll ($1160 total)
  2. Junk Silver. $20 face value (FV) of any denomination of dimes, quarters, and half dollars. This will be a great start to getting great, old American coinage in your stack. Dimes would be 200 of them. Quarters would be 80 of them. Half dollars would be 40 of them (each denomination equaling $20 face value). Approximate cost: $200 / $10 face value ($400 total)
  3. Gold. 2 – 1/10 oz American Gold Eagles would be a fantastic addition to you stack. These look small but add tremendous value and is great to hold as part of your wealth preservation. Approximate cost: $220 each ($440 total)
American Silver Eagles
Junk Silver
American Gold Eagle

The Final Word

Stacking precious metals is fun, interesting, and helps you save money. You will be surprised how quickly you’ll start to accumulate wealth. You may just stop spending your money on wasteful things and start using it for wealth preservation. There is so much out there and it can get confusing. Take the time to learn and research before just buying to help make sure it is a wise purchase.

If you have any questions, feel free to send me an email. My email address can be found on the Contact page.