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
Read about the Hunt brothers from the early 80′s for a historical perspective.
One really good silver dealer, who offers junk silver in dollar face value amounts at reasonable prices, is http://www.providentmetals.com . I’ve bought from them several times and have never been disappointed.
Totally agree concerning Provident Metals. I’ve been buying from them the past couple of years, and they much more often than not have the best overall prices. Another plus with Provident is you don’t have to purchase large quantities to get a good deal.
I’ve always received great service from them, and plan to continue to purchase from them in the future.
BTW, I have no connection with Provident whatsoever, just a very pleased customer.
I’ve used http://goldsilver.com
Everything was simple, and my coins arrived in good time.
Not an endorsement, just a report that I wasn’t ripped off and had no problems. I’ve heard bad things about certain sellers (like the one currently advertised on this very page).
The point being that it’s worthwhile to be careful who you buy from online.
Log onto the Kitco site every day. They have great minute-by-minute color charts for silver & gold.
For those interested mainly in “making money” in silver speculation, open interest shares may be the answer. Eventually, there * will* be a major currency crisis. And whether European, Chinese, or American, the value of ‘paper’ silver will very likely go ‘thru the roof’, at least temporarily. Significant profits will be made by many. But in the end, the ‘profit’ you make might very well be in a fiat currency that you need to “get out of”, anyway. In this case you need to be quickly postured to move that capital into some non-fiat denominated asset (land, food, tools, copper-jacketed lead, etc.).
For everybody else (like me) who doesn’t have the time, attention span, or ice water in our veins, gradual acquisition of physical PMs makes the most sense. No need to drop 10-grand on junk silver in one fell swoop. Just swing by your local coin shop once a month and pick up ~$50 in silver dimes/dollars. We do this not for ‘profits’, but to preserve purchasing power. The ultimate goal is to provide oneself with the time & ‘space’ to explore their options when a crisis hits, rather than panicking & reacting out of desparation like the other 98% of the population. Physical PMs will give you “room to maneuver” during a crisis.
Be sure to check into your state sales tax on precious metals. Here in Texas, any precious metals sale over $1000 on a single receipt is exempt from sales tax. Easy to meet this requirement when buying gold, not so much on silver. So plan ahead and try to make enough of a purchase at one time so as to avoid a sales tax if such a tax exists in your location.
I bought a crapload of silver when it was $29. It has gone up above $45, and has gone down to $26. You should also google ‘silver market manipulation’ because its rampant. As much as I’d like to believe that its the ultimate ‘reserve’ currency, free from government ability to fiat manipulate, its not. I feel sorry for those that bought into the hype at $45+ to watch it plummet below $30 within weeks. Gold, silver, real estate, internet stocks… everyone always has the advice that NOW is the time to buy. Tossing a coin might be as accurate an approach.
You’re right, PMs certainly are manipulated. But in all honestly, *everything* is manipulated to one degree or another. It should be self-evident that paper currencies, by definition, are the ultimate manipulation or labor.
In the end, if you have physical PM in your possession, you’re in a far better position than any other asset with counter-party risk. Just don’t ‘advertise’ the fact that you have PMs in your possession.
I like to go to the local credit union and buy rolls of nickels. They think I enjoy shoving them into indian nickel slots but they go right into the ammo cans!
I agree with GA…..buy a roll of nickels every few days. Doesnt cost a lot and you dont have to worry about what date it was minted. Small steps big results!
I have bought a little bit of silver. I figure it will go up in value as years go on or I will have it for retirement or to leave for the kids or.grandkids. I only buy a little here and there, besides it’s pretty.
I bought the silver I had of of eBay. Had its risks but, I kept it to junk silver (quarters and dimes). I would be buying it for less than what I would buy it from APMEX or provident. And in mug smaller quantities so it was easier on the pocket. I did unfortunately bought the majority of it when the price was around $37 so I am in the red quite a bit. But remember that we (preppers) are buying it for the long haul and not to make a quick buck!
Emanjamin
Dang typos on phone… Sorry :-)
I rode the Hunt Brothers price run up and made enough money for a house down payment. I was extremely lucky. Now in my older age I also buy rolls of nickels and about $1 of junk silver a month, some times more, some times less. I have lots of room to store the multitude of ammo cans. But they are getting expensive too. so coffee cans may be next. Anyway as the survivalist saying goes, ” you can’t eat silver, gold, nickels or pennys, but why not take a few of each prudently every month along with your bullits, beans and bandages?
Looks like you hit a hot one Ranger Man. I love the stuff. @ a local collectibles place I (anonymously) buy a dollar to five dollars of “constitutional (90%)” silver coins @ spot + a little after every job I get payed for. Probably when it goes up I’ll sell enough to get back my cost and then let it ride. Right now it is better than savings accounts and probably mutual funds cause I’m out of the stock market. The other thing I do along with the nickles thang is get rolls of dimes and quarters. When ever I cash a check I go thru them. It’s better than the lottery (can’t lose). Keeps me happy and “off the streets. I’ve found pre- 65′s even mercuries . Whatever is left is for tolls or back to the bank’s free coin counter. More importantly pay off that debt and cut up the plastic!
Also the “jingle” sounds so SWE E E T. Real money!!!!!!!! Every once I a while it’s in the change at the store. It sounds different. Whenever I get change I look at the edges. No copper line… SIL-VER!
Couple things on Silver and Gold. In my humble opinion, if you don’t have more than a few years chow, some fish antibiotics, offensive & defensive weapons and other gear to get you through a long term lack of goods, you shouldn’t buy PM’s but you know what’s best for you and yours.
That said, here are two aggregator sites that are helpful to me to get the best prices on PM’s while comparing several others.. Also, keep in mind that the quotes on TV, Kitko, ect are for 5000 ounce bars of Silver and 1 kg bars of Gold. Smaller purchases cost more so if you’re not getting reported spot, this has something to do with it.
Also keep in mind that a $50 Gold Eagle actually has 33.x grams of gold instead of the standard troy ounce of 31.x. (I’m too lazy to look up the exact figures but I seem to remember .6 and .3)
http://comparesilverprices.com/
http://www.comparegoldandsilverprices.com/
Use as you may.
Sempe Fi
Buying junk silver coins scores over investing in precious metals like gold that are available on an over the counter basis. The biggest advantage is that an investor must buy these precious metals at current market rates. In contrast, an investment in junk silver is at up to 50% of the market rate of silver. Second, the investor has to buy a minimum quantity and all precious metals are pricey. So, an investment in precious metals eats away into capital and any dip in value spells a loss. In contrast, investors can as much junk silver as they can afford and not be worried about a fall in silver’s market price because they anyway purchased the coins real cheap.
Silver is Great! Can’t get to much, If you can pick up a little gold to…
http://www.StoopidIS.com
The other day I watched a DVD on the New Haven Railroad that was produced in the wartime year of 1942, titled “A Great Railroad at Work”. It explored all aspects of the railroad, both freight and passenger. In covering the passenger aspect of the railroad it featured the dining car where they focused on the menu board. Seeing that menu board made me understand the value of silver in very real terms.
Besides being facinated that the clam chower was only 10 cents, I realized that by comparing the prices on that menu board to what silver is going for today, the prices haven’t changed much at all. Today, a dimes worth of silver is about $2.00 so I compared what my local diner was asking for clam chowder. You guessed it, it was almost the same as the silver value of a pre-1964 dime at $2.25. In nearly 70 years, the silver value of things is still nearly the same. I’ve read a report about a guy in California who was offering gasoline at his gas station for only a quarter – so long as it was paid in pre-1964 coinage. Back in the 40′s and 50′s gasoline was selling for 25 cents a gallon.
Aside from a potential collapse of the economy when silver coins might again be a medium of exchange, the real worth of silver is to protect assets from the inflationary effects over time. Given the state of the economy and the potential of QE3, silver should hold its value in a much shorter period of time of excellerated inflation.
One more note about silver:
I just got back from my almost-weekly brunch with friends at the local diner (clam chowder $2.25) where I brought up the subject of silver. One of them attempted to sell some of his Silver Eagles to a jewelry store and they wouldn’t touch them. They bought his junk silver coins but they told him he’d have to take the Silver Eagles to a pawn shop. I vaguely recall an article I read not too long ago that mentioned there were counterfeit Silver Eagles out there (China). I’m not sure about that, but the fact that the jewelry store wouldn’t accept them is something I’d pass along. Personally, most of my silver is in pre-1964 junk coins. These coins are virtually impossible to counterfeit.