Stacking Gold & Silver: A Beginner's Guide To Acquiring And Growing Precious Metals Holdings

By Martin Ramallo

Learn how to better understand the value of precious metals!

Do you want to get to a point where you can reduce the amount of currency used to purchase precious metals like gold and silver? In this book, author Martin Ramallo will show you his strategy on how to do just that and use the metals themselves to continue growing a

• Language: English
• Publisher: EMELAR IT GROUP CORP
• Release date: Jul 25, 2022
• ISBN: 9798985718218

Book preview

Stacking Gold and Silver

A Beginner’s Guide to

Acquiring and Growing

a Precious Metals Holding

Martin Ramallo

Copyright © 2021 by Martin Ramallo

Stacking Gold and Silver

All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the author and publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

Although the author and publisher have made every effort to ensure that the information in this book was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

Adherence to all applicable laws and regulations, including international, federal, state and local governing professional licensing, business practices, advertising, and all other aspects of doing business in the US, Canada or any other jurisdiction is the sole responsibility of the reader and consumer.

Neither the author nor the publisher assumes any responsibility or liability whatsoever on behalf of the consumer or reader of this material. Any perceived slight of any individual or organization is purely unintentional.

The resources in this book are provided for informational purposes only and should not be used to replace the specialized training and professional judgment of a financial, legal, health care, or mental health care professional, advisors, and counsel.

Neither the author nor the publisher can be held responsible for the use of the information provided within this book. Please always consult a trained professional before making any decision regarding finances, investments, and/or treatment of yourself or others.

ISBN: 979-8-9857182-0-1 

Dedication

This book is dedicated to my family and friends, my parents Luis and Susana Ramallo, and most importantly, to my beautiful loving wife Natalie, who was caring and encouraging every step of the way. Without all of your support and care throughout the process of writing this book, it would still just be an idea. Thank you.

Be the change you wish to see.

― Anonymous

Table of Contents

Preface 1

Introduction 9

A Brief Summary 13

Chapter 1 The Case for Gold and Silver 19

Chapter 2 Forming the Strategy 29

Part 1: The Holding Strategy

Chapter 3 Planning the Holding Strategy 45

Chapter 4 Executing the Holding Strategy 59

Part 2: The Acquisition Strategy

Chapter 5 Planning the Acquisition Strategy 63

Chapter 6 Executing the Acquisition Strategy 79

Part 3: The Growth Strategy

Chapter 7 Planning the Growth Strategy 91

Chapter 8 Executing the Growth Strategy 107

Chapter 9 Monitoring the Indicators 115

Chapter 10 The Future of Gold and Silver 123

Summary 135

Preface

I was born in Argentina in the early 1980s to middle class parents with a high school education. My father was an electrician by trade and an entrepreneur by heart. My mother has always been my father’s rock, by his side through thick and thin to this very day. Together, my parents raised my siblings and myself, teaching us by example that hard work and perseverance eventually pay off.

But when they don’t, it’s time to move on.

Argentina’s first hyperinflation of 1979 to 1980 happened before I was born, but my parents still remember it vividly. They described it as waking up one morning and having the currency in your wallet worth 50% or less than it did yesterday. When that happens, it becomes a race to spend while your currency still holds some bit of value. Nobody wants to be stuck with worthless pieces of paper that are losing purchasing power daily, and at one point, even hourly!

So, in 1988, my father emigrated to the United States to seek new opportunities for our family. The next year when I was seven, my mother, myself, and my six-month-old sister were reunited with my father in the United States and not a minute too soon. By the end of that same month, Argentina was going through its second hyperinflation in ten years.

Although it feels that way, hyperinflation doesn’t happen overnight. It takes years before it finally manifests. It begins with the central bank creating currency at an uncontrollable rate—on average, 400% (or four times) what’s already in circulation. Once that happens, such as the case with Argentina, it sets into motion an acceleration of money velocity, usually within a couple of years. Once consumer confidence reaches a new all-time high, people become loose and start spending the currency they’ve been hiding under their mattresses.

When that happens, all that excess currency that’s been created and first spent by the government starts to circulate in the economy, chasing the same amount of goods and services as before the rapid increase. Because goods and services are limited in terms of how fast they can be produced or how many people a company can provide service to at any given time, prices increase in order to slow down the demand. The problem is that more and more currency units are constantly entering the economy faster and faster, almost all of them at the same time.

This creates shortages, often causing supply chains to snap and further increasing demand, sending prices ever higher in another attempt to slow it down. It becomes a positive feedback loop, which every government tries to fix in the same manner as the last one, assuming this time it’ll be different. But this is the very definition of insanity. In reality, it’s the same game, just in a different country and on a different date.

They all do the same thing when the point of hyperinflation is reached—create even more currency to try and fix the problem and play the blame game. The government points the finger at the producers of goods and services and the speculators, accusing them of price gouging and hoarding. But this so-called solution always fails, creating the same result every single time—the national currency eventually goes to its intrinsic value of zero, destroying savings, trust in the financial and government systems, and ultimately consumer confidence.

Once that happens, the next step is to replace the debased national currency with a new national currency, which will sooner or later be debased as well. And the cycle of repetition continues. In the case of Argentina, it was the peso ley in the 1970s, the plan austral in the 1980s, and then back to the peso in the 1990s.

Thankfully, my family was here in the United States when the last hyperinflation happened, but many of my relatives were not so lucky. Imagine waking up one day and feeling such tremendous loss of value on your hard-earned money, seeing it decrease by 10%, 20%, 50%, or even 90% than it was worth just yesterday. People who had saved for retirement for twenty, thirty, forty years, or even longer suddenly lost everything.

That’s the unfortunate reality that many in Argentina faced during those hyperinflationary periods. Their whole life’s plan was uprooted overnight. In the worst cases, people committed suicide. Even in the least extreme cases, people withered away as though their hearts had been ripped from their chests.

This is why many Argentinians and South Americans do not trust the banks even after moving to the United States. If we have anything to learn from these experiences, the recession of 2008 proved that even banks in the United States are not to be trusted all of the time, and it’s all because of the central banks—like the Federal Reserve—making the poor choice to repeat history.

The 2008 Financial Wipeout

In the first decade of the 2000s, I was in my twenties and had decided to invest in real estate. I acquired a few properties that I purchased with adjustable-rate mortgages. Remember those? These loans allowed the interest rate to fluctuate periodically according to an index which reflects the cost of the loan for the lender. This was a very expensive lesson that taught me to always read the fine print, even if it takes an extra day or two.

That’s right, I was one of the participants in the game of financial musical chairs of real estate investing, and sadly, I was not immune to the 2008 crisis. Like many, I was horribly burned when real estate values plummeted. In no time flat, I was left standing with several properties that were underwater. By 2011, I had lost the last one to foreclosure and watched as each property was auctioned off for heartbreaking amounts. A condominium I had purchased for $120,000 in 2006 sold at auction for a laughable $30,000. Buy low and sell high, right?

Nope, those were not the best years of my life—I’d officially hit rock bottom. Not only had I lost several properties in foreclosure but my credit score went down the drain, I got married and divorced, lost every last penny I had in savings, and eventually had to return to living with my parents until I could get my head above water. I was destroyed financially, and I alternated between laughing at how messed up it all was, and crying myself to sleep. On top of everything else, I was now in my early thirties with nothing to show for it.

Don’t worry, this story has a happy ending. It’s true, life