by Gary Christenson, GoldAndLiberty:
You want to retire soon but you don’t trust debt based fiat currency paper assets. Besides, the stock market looks toppy and bonds have about run their 30+ year bull market to its inevitable and ugly end – as indicated by negative interest rates, QE, helicopter money, ZIRP, central bank insanity and more.
How much stacked gold and silver do you need to retire? It clearly depends upon your individual situation – your age, expenses, other income, medical expenses, and more.
Assume that average annual US wages indicates a rough estimate of your annual retirement expenses. Below are graphs of average annual wages expressed in ounces of gold and silver based on their average annual selling price.
Note that the US average wage, measured in both gold and silver, as I have drawn the dashed line, has been declining for the last three decades. Given that gold and silver have recently emerged from four year corrections we expect their prices to rise more rapidly than wages, so the ongoing decline should continue.
Use average wages (approximately $40,000 per year) as a starting point. Adjust for your situation, taxes, life style, age etc.
Hope you have other income, such as Social Security, a pension, or 401(k), that will pay 25% or 50% of your needs.
Assume about 2,000 ounces of silver or 30 ounces of gold are equivalent to US annual average wages.
Assume the needed ounces for retirement expenses decrease by (at least) one % per year for both gold and silver as gold and silver prices accelerate higher.
If markets crash and central banks can’t prevent a deflationary collapse, gold and silver will probably protect your purchasing power as their prices will fall proportionally less than other prices and assets.
If central banks create hyperinflation, gold and silver will probably rise far more rapidly than prices for what you need.
If “stagflation” dominates, then gold and silver should more than cover the increase in expenses for your needs.
If the powers-that-be create a nuclear war, or manage a total financial collapse, we will have other more pressing concerns than ounces of gold or silver.
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