M4S 020: Buying Gold and Silver for Survival Preps
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Buying gold and silver for survival has long been recommended as an excellent investment for the preparedness-minded. Before buying, there are a few things you need to know to make a smart investment in your future.
What Are Precious Metals?
Precious metals like gold and silver are metals that retain monetary value. Gold and silver have a 6000-year history of use as money for conducting day-to-day commerce. As such, buying gold and silver for survival can be an excellent addition to your preparedness insurance plan.
It wasn’t until modern times that some people began to downplay the importance of precious metals.
Buying Gold and Silver for Survival Preserves Wealth
Gold and silver are a great way to protect yourself against the decline of the dollar.
An excellent example of this is in regards to home buying over the years:
- In 1964, it took 15,000 ounces of silver to purchase the average U.S. home. Today, in 2017, it will take the same 15,000 ounces of silver to buy the average U.S. home.
- In 1964, it took $19,000 in paper dollars to purchase the average U.S. home. However, today, in 2017, it will take $250,000 in paper dollars to buy the same average U.S. home.
The reason it takes so many more paper dollars to buy the average U.S. home is because of the devaluation of the dollar. However, while the dollar has devalued, silver and gold have maintained their value.
Unfortunately, the devaluation of the dollar is likely to go on. Therefore, as part of your prepping budget, you should consider gold and silver as part of your prepping portfolio.
Should You Buy Gold, Silver, or Both?
If you’re able, it’s best to diversify and buy both. Although, if you can only afford to buy one, then you should buy silver.
Should buying only silver be the course of action you decide upon, it will make you much more secure. You will be more secure because silver is much easier to use for small day-to-day transactions.
Also, should you lose some of your silver, it will be much less costly than losing gold. For example, it is a lot better to lose two silver coins than two gold coins.
What is the Gold-Silver Ratio?
The gold-silver ratio is defined as the number of ounces of silver it takes to purchase one ounce of gold.
Typically, when the gold-silver ratio is high, silver outperforms gold in the next cycle.
What Should You Do When Buying Gold and Silver for Survival?
If you’re buying gold and silver for survival, you should diversify. Diversification does not just mean buying both gold and silver. It means investing in various types of gold and silver.
It is essential when investing to avoid high premiums. Avoiding high premiums will get you more precious metals for the dollars you spend. One way to avoid high premiums is to contact Craig Hill at Hill and Vaughn Precious Metals. Craig is excellent at helping the average person understand precious metals. He will offer you great advice to help ensure you are as prepared as possible when it comes to purchasing your gold and silver.
When investing, try to focus on easy to recognize silver, such as pre-1965 silver U.S. coins. These coins are known the world over. They are also commonly known to have a 95% silver content. Therefore, they will be easy to trade and use as currency.
What Size of Gold or Silver Ingots are Best for Trading?
First, it’s good to remember that the best metals are the ones trading at the lowest premium.
Right now, the type of precious metal trading at the lowest premiums is 95% silver, also known as junk silver. Junk silver includes U.S. quarters, dimes, and half dollars minted before 1965.
Should I Buy Collectible Coins (Numismatics)?
Buying collector coins is an individual choice. However, collector coins usually have very high premiums. Additionally, collectible coins are only worth the high premiums to a collector who values the coin for its collectability. Simply put, should you need to use your silver in a major society-impacting event, very few people, if any, will care that your silver is a shiny, collectible coin.
Additionally, collectible coins are only worth the high premiums to a collector who values the coin for its collectability. Simply put, should you need to use your silver during a major society-altering event, what are the odds people will collect coins for their artistic and collectible value?
Paying high premiums on collectibles now reduces the amount of money you have to buy gold and silver. This then means you’ll have less gold and silver to spend should you need it down the road.
What Will Happen with Gold and Silver If a Collapse Occurs?
Gold and silver will not do much during the early stages of a financial collapse or other society-altering scenarios. In fact, there could be a point in the midst of the collapse when gold and silver are actually worth less than more practical supplies.
Later though, as is usually the case, the economy will begin to reestablish itself. As the economy comes back, gold and silver are very likely to be part of that movement. After all, gold and silver have historically always reasserted themselves as a form of money following significant economic and societal shifts.
The Bottom Line on Buying Gold and Silver for Survival
Precious metals absolutely have a place in your preps. However, if your budget is extremely tight, you may want to take care of basic needs before investing in gold and silver. These metals are primarily a vehicle for preserving wealth.
By all means, if you have money you want to secure, you can’t do much better than buying gold and silver for survival.
Stay safe, secure, and prepared,
Additional Information and Resources:
Craig Hill: Gold and Silver Expert
Hill and Vaughn Precious Metals
Good advice here. I’m a believer in owning PMs. One thing though, the silver content in junk silver US coins is 90%, not 95%.