Been watching the price of silver? Buying silver for storing value has long been a mantra amongst the prepper community. “Junk silver,” coins largely made in 1964 and earlier, has been the primary silver tangible that preppers have advocated buying. Rawles over at Survival Blog talks about it all the time. When financial times get tough (due to inflation), precious metals act as a storage of wealth, their value increases. Inflation goes up, so the dollar has less purchasing power. People (with money to spend … or save as it may be) then buy silver and gold as it acts as a way to retain that purchasing power during inflationary times. Is the time to buy now? I think it is.
While I don’t have a ton of discretionary money to go dumping into silver, I know all of you do … or some of you might. But even if you don’t, you could buy “junk silver” coins at your local coin dealer with however much money you might have, starting small while prices are low – like now.
As I write this, an ounce of silver is hovering around the $28.00 per ounce price. By historical standards, that’s pretty darn cheap. Silver has been overshadowed by gold in the past few years as markets like India and China purchased more gold. The value “balance” between gold and silver went out of balance, meaning that the gold-to-silver price ratio went haywire. Silver was less valued than gold. Everyone wanted gold – gold – GOLD! Well, you can get priced out of gold quite quickly, many do, and when they do, they move to silver – silver – SILVER!
So if you believe that the economy will not be doing any better, that quantitative easing will continue, that Europe will continue to flounder, and we’ll be heading toward inflation – silver wins!
If, on the other hand, you think the economy will do be doing better, manufacturing will pick up and people will buy more useless stuff – silver wins! Why? Unlike gold, silver has many industrial uses. It has the highest electrical conductivity of any metal. It’s used in cellphones, televisions, etc. Silver is also used widely in the medical field, because it has a toxic effect on bacteria and viruses. Woah – that’s all kinds of winning.
Need further evidence that now is a good time to buy silver? Google it. Google “silver price” and look under the news listings, not the general search results. Then weed out all of the biased “buy gold and silver” type websites (that Rawles links to a lot), and look at independent analysts’ thoughts. Silver is set to rebound.
SO! What does the prepper with tons of extra cash do to invest in silver? First of all, avoid the funds that allow you to buy “shares” of silver. Screw that. It’s totally NON-prepper-like. Put silver IN YOUR HAND. It feels sooo good. Junk silver, again, is pretty much the best prepper-based silver purchase to be made. Why? Should SHTF, it’s easy to barter with. People know what it is, how much it’s worth, and the coins are of small enough value that it’s easy to use for bartering. Moving up from that, you can go to fine silver, 99.99% silver. I like Silver Eagles, as many people do. They’re a straight one ounce of silver and they’re popular with collectors and investors. Moving up from that, you can go to silver bars, and those come in size from a gram to … about as big as you want (or can afford).
The trick, if you’re buying silver, is to know when (and be willing to) cash it out when prices are abnormally high. Buy low, sell high. Prices right now? Very low.
- Ranger Man