Silver and gold are often discussed within prepper and survivalist circles. Here are my thoughts on the subject:
Silver and gold are very unlikely to help you survive in the midst of
a disaster of any sort. Bottled water, food, and warm, dry clothes,
shoes, & blankets will likely be much more important, and a
“currency” in much greater demand, in the midst of any disaster. Look at the immediate aftermath of Hurricane Katrina – people
were desperate for clean water and dry clothes, not gold or
However, silver and gold may make
a good hedge against inflation in a mostly “business as usual”
atmosphere. Also, in the long-term aftermath of a major disaster that
includes an economic and political collapse, gold and silver will likely
prove to be extremely important as a currency, but only as society
begins to reorganize and looks to stores of wealth other than devalued
and worthless currencies, and collapsed credit markets.
Another thought: In the aftermath of an
economic collapse, it will be virtually impossible to enforce any
certificates or other paperwork that say you own gold or silver that is
being held for you by a broker, financial intuition, or anyone else. Any
gold or silver you own that is not in your physical possession will
most likely not be recovered by you if a complete economic and political
collapse occurs. If you believe an economic collapse is likely, take
physical possession of your gold and silver before the collapse occurs.
Naturally, keep your gold and silver in a safe and secure place, and
make sure as few people as possible know you have it.
So, how much should you invest in precious metals?
It depends on your situation. First, make sure your other basics are
covered - including paying off your consumer debt and setting aside an
emergency fund. Once that is done, many financial experts recommend
folks keep about 10% of their money in precious metals. I personally
would recommend at least 20%, given the state of world affairs. Again,
this is only after you have covered your other financial and preparedness basics. Decide
for yourself what is best for you.
I hope this article has given you some "food for thought" on this topic. You may also be interested in my article, Prepper's Guide to Junk Silver, from 2014. It includes a lot of technical information on the topic.
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