Why Precious Metals Matter for Affordable Housing Investors: Eric Harmon Explains Gold and Silver Strategy

Introduction: Why Talk About Gold and Silver in a Housing Podcast?

When most real estate investors think about hedging against inflation, the first answer is property. Buy a house, hold it, and let appreciation do its work. But what if there’s another layer of protection that’s been overlooked?

In this episode of the Affordable Housing & Real Estate Investing Podcast, Kent Fai He sits down with Eric Harmon, coin expert at Preferred Coin Exchange, to unpack how gold and silver—specifically an 80% silver, 20% gold strategy—can help investors preserve and grow wealth.

For affordable housing developers, landlords, and advocates, understanding how different asset classes store value isn’t just about financial diversification. It’s about resilience. This conversation opens the door to a bigger mindset shift: learning how to protect your capital so you can keep creating affordable housing opportunities.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

Why Do Experts Recommend 80% Silver and 20% Gold?

If you’ve ever asked yourself why investors talk about silver in addition to gold, you’re not alone. Eric explained that historically, the gold-to-silver ratio was about 16 to 1. Today, it’s closer to 100 to 1.

That gap signals opportunity. Silver has more room to grow, especially as global demand for physical assets increases. By holding more silver than gold, you’re positioning yourself for potential upside while still balancing with gold’s proven stability.

How Does Precious Metal Investing Compare to Real Estate?

Eric gave a powerful analogy:

• In 1920, a house in Saint Paul, Minnesota, cost $30,000.
  
  

• If you sold it and took payment in gold coins, that would equal 1,500 ounces of gold at $20 per ounce.
  
  

• Fast forward 100 years: those 1,500 ounces are worth nearly $5 million.
  
  

Gold and housing tracked nearly equal over a century. That example highlights why serious investors view precious metals as a true hedge against inflation—just like real estate.

What Are the Three Main Types of Coins Investors Should Know?

Eric broke down the coin market into three categories:

1. Government-Issued Coins – Backed by weight and purity guarantees. Examples: American Gold Eagles, Silver Eagles, Canadian Maple Leafs.
   
   

2. Collectibles (about 85% of the market) – Popular but not always the best choice for investors. Prices often reflect scarcity or design, not just metal content.
   
   

3. Numismatics – Rare, high-grade government-issued coins often held by hedge funds and serious investors. This is where long-term wealth building happens.
   
   

Key Insights for Affordable Housing Investors

• Diversification matters: Don’t rely solely on property or paper currency. Physical assets like gold and silver provide stability when currencies weaken.
  
  

• Silver’s upside: With the gold-to-silver ratio historically lower, silver may have more growth potential than gold in the years ahead.
  
  

• Sound money mindset: Coins aren’t just collectibles. They’re a way to preserve wealth for the next generation, much like real estate.
  
  

• Start small, build over time: Even buying one ounce of silver every two weeks can make you wealthier than 99% of the world in a decade.
  
  

• Education first: Always start with government-issued coins to avoid scams and ensure purity.
  
  

Best Quotes from Eric Harmon

“Gold and housing went equal in 100 years.”

“If you’re saving money in the form of a currency, you are losing.”

“He who owns currency is slave to bank and government. He who has the gold is king and independent.”

“Silver has more room to grow. Eventually it has to get back in ratio with gold.”

Common Questions About Gold, Silver, and Housing

Why should real estate investors care about precious metals?
Because both gold and silver hedge against inflation. Holding them alongside property helps preserve purchasing power across market cycles.

What’s the safest way to start?
Begin with government-issued coins like American Eagles or Canadian Maple Leafs. They’re backed by purity and weight guarantees.

How much should I allocate?
Eric suggests the 80/20 strategy: 80% silver, 20% gold. Silver has growth potential while gold anchors stability.

Isn’t saving money enough?
Not necessarily. As Robert Kiyosaki says, “If you’re saving, you’re losing.” Inflation erodes cash. Precious metals hold value over time.

How can I teach my kids about this?
Start by letting them hold a silver coin. That tangible weight makes money real in a way a dollar bill never can.

Kent Fai Heis an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.