Across multiple precious metals forums I have run across the idea of "what size stack should I shoot for".
This made me think of how I would tackle this question:
Should I measure my goal in the local paper currency?
Should I measure my goal in silver ounces?
Should I measure my goal in gold ounces?
How does my income affect my goal? (post/pre tax?)
How does my age affect my goal?
..........................................................
I selected gold ounces as my measure. While you do not have to exclusively invest in gold, you can simply use current ratios to convert the current worth of your other metals to gold.
I assume you don't start stacking until you are an adult, so I adjusted the age to current age minus 18.
I also assume you will be able to save/invest more of your money as you get older. For my equation, I selected 5%, at age 20, as my scalar and add another 2.5% every five years.
Goal equation:
Goal = (Yearly Income / Gold Spot price) * (Age -18) * Scalar
Example:
40 year old
$100,000 in income
Gold spot price of $1,650
Goal = (100,000 / 1650) * (40 - 18) * 0.15 = 200 ounces
Of course, you can adjust the scalar to your particular tastes.
This made me think of how I would tackle this question:
Should I measure my goal in the local paper currency?
Should I measure my goal in silver ounces?
Should I measure my goal in gold ounces?
How does my income affect my goal? (post/pre tax?)
How does my age affect my goal?
..........................................................
I selected gold ounces as my measure. While you do not have to exclusively invest in gold, you can simply use current ratios to convert the current worth of your other metals to gold.
I assume you don't start stacking until you are an adult, so I adjusted the age to current age minus 18.
I also assume you will be able to save/invest more of your money as you get older. For my equation, I selected 5%, at age 20, as my scalar and add another 2.5% every five years.
Goal equation:
Goal = (Yearly Income / Gold Spot price) * (Age -18) * Scalar
Example:
40 year old
$100,000 in income
Gold spot price of $1,650
Goal = (100,000 / 1650) * (40 - 18) * 0.15 = 200 ounces
Of course, you can adjust the scalar to your particular tastes.