If You Sold Silver As The Silver Price Rose Watch This (Made before silver crash)

Key Concepts

• Taking Profits: The strategy of selling a portion of an appreciating asset to secure gains.
• Initial Investment Back (Seed Capital): The practice of recovering the original amount of money invested in an asset, leaving the remaining portion to grow risk-free.
• Undervalued Assets: Investments purchased when their market price is below their intrinsic value, based on fundamental analysis.
• Asset Classes: Categories of investments with similar characteristics and market behavior (e.g., precious metals, cryptocurrency, real estate, cash, bonds).
• Market Cycles: The recurring patterns of expansion and contraction in financial markets, affecting different asset classes at different times.
• Diversification (Multiple Baskets): Spreading investments across various asset classes to mitigate risk and capture opportunities.
• "Little by Little" Wealth Accumulation: A long-term investment philosophy emphasizing gradual, consistent gains over get-rich-quick schemes.
• Fiat Cash: Government-issued currency not backed by a physical commodity.

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Congratulating Profit-Takers and Core Investment Principles

The speaker begins by congratulating individuals who have taken back their initial investment from silver, asserting that they have "absolutely crushed it." This action aligns with a core investment principle: buying assets that are "beat down, undervalued," and then taking profits when their price rises significantly. The philosophy is that one "made money the day you bought it" if the asset was acquired when depressed, with the expectation that fundamentals would eventually drive its price up as more people recognize its value. The current "exploding" price of silver is highlighted as a prime example of this principle in action. The speaker expresses happiness for those who secured their initial investment, and possibly more, by selling a portion of their silver holdings.

The Silver Investment Case Study

The video uses silver as a primary example to illustrate the profit-taking strategy.

• Initial Investment Period: When the speaker started his channel five years ago, silver was consistently priced between $14 and $18 for about a year, during which he heavily advocated for buying the metal.
• Trigger for Profit-Taking: A couple of months prior to the video, silver hit around the mid-$40 range. At this point, investors who bought between $14 and $20 would have at least doubled their "initial seed money."
• Recommendation: The speaker advised investors, especially those who had allocated a "large portion of their net worth" to silver, to "pull your original investment back." He explicitly clarified that this does not mean selling all holdings, a point he has "never said."
• Execution: Some investors followed this advice, selling a portion of their silver at prices ranging from $45, $50, $60, $70, $80, to $100. They converted this silver back into "fiat cash" through coin shops, pawn shops, or online brokerages.
• Market Cycles: The speaker addresses potential resistance from some in the silver community who might view silver as an "end all be all." He counters this by stating that all markets, including real estate, crypto, and bonds, operate in "cycles," albeit with different timelines.
• Outcomes of Profit-Taking: The recovered fiat cash was then used for two main purposes:
  1. Paying off debt, which is described as "awesome."
  2. Holding the cash in a bank, "waiting" for the next investment opportunity.

The "Little by Little" Wealth Accumulation Philosophy

The speaker introduces a fundamental principle for wealth building, emphasizing gradual growth over quick gains.

• Biblical Reference: He quotes Proverbs 13:1 (New International Version): "Dishonest money dwindles away, but whoever gathers money little by little makes it grow." This verse underpins the idea that "get-rich quick schemes are not the thing."
• Diversification through "Baskets": The speaker advocates for having "multiple baskets" (asset classes) for investment, as not all asset classes appreciate simultaneously. His personal investment "baskets" include:
  • Real Estate: Currently in a "down market," though he mentions owning some storage units. He notes that he's not actively pursuing cash-flowing real estate "in earnest" due to the market conditions.
  • Crypto: He previously sold about half of his crypto holdings in November/December when the expected market cycle didn't materialize as anticipated, converting it to cash, even taking some losses. He anticipates crypto prices will go "much lower."
  • Precious Metals: Currently "skyrocketing up," making it a focus for profit-taking.
  • Cash: Maintained as a separate basket, earning a small rate of interest while awaiting deployment.
  • Bonds and other things.
• Strategic Capital Deployment: The key is to have "capital that you have sitting... ready to launch into the next asset class at a low price."
• Continuous Profit-Taking: As an asset class "smokes up" (e.g., crypto in spring/summer before its downtrend), investors should be "pulling profit," converting a portion to cash. This involves "shaving off little bits throughout the entire year."
• Re-investment during Downturns: If there's a "smackdown" (significant price drop), a little bit more capital can be deployed, but the overall strategy still involves pulling profits into cash.
• The "Winning" Scenario: The ultimate goal is to deploy an initial amount (e.g., $200), pull out more than the initial investment (e.g., $300), and still retain a significant portion of the original asset (e.g., "a bunch of silver") that continues to appreciate. This represents a 50% gain on the original seed capital while maintaining exposure to the asset.
• Resisting External Pressure: The speaker acknowledges that when taking profits during a bull run, others might call you "crazy" or a "fool" (e.g., during crypto booms in 2017/2020 or real estate in 2006). He emphasizes that this is a recurring pattern and part of avoiding the "get rich quick" mentality.

Conclusion and Call to Action

The speaker reiterates that true wealth is gained "little by little," through consistent small victories. He encourages viewers to share their own recent financial victories in the comments section as a "testimony," believing that for every one person who might be offended, "nine people will be grateful" and inspired by these stories.