I think preparation should be balanced for hard times...and should include, food storage, water storage or a way to obtain water, an adequate supply of weapons/ammo and medical supplies...as well as some type of "hard" currency (i.e. silver). if you think any of these arent important just ask those who were in New Orleans in the days after Katrina.Check out the survivor podcast Jack Spirko tells people to buy silver and store food we store food but have not started to buy silver
I too like the bars and rounds...I prefer the 1 oz bars, but also have some 1 gram pieces. I would love to obtain some junk silver but only see it for sale in large quanities. If anyone is near me and has any they want to sell, message me.The gap in proportional value between silver and gold has never been higher. It true that silver WAS dirt cheap back in the eighties but mints will tell you that over 80% of the worlds supply of silver(including un-tapped assets) has been consumed by industry(Chemicals and Tech use). Only recently have they learned in the medical field that silver is naturally antimicrobial and reduces the potential spread of disease. It sad knowing that before 1965 almost all US coinage was 90% pure silver now it is made of useless or poisonous metals. To acquire silver at or below $20 an ounce is an excellent investment. I recommend junk silver(old US coins) and rounds or bars.
Bad, bad, bad advice.
Silver is a commodity. When prices get high enough, more gets taken out of the ground. It's a dangerous roller-coaster. If you buy low, you might make a profit. Otherwise, you can really lose a lot. Look up historical prices and you'll see what I mean.
With ANY investment, "Buy low, sell high".
Too many people see the price of gold or silver at a peak and rush to buy it. That's the wrong time. In the '80's, gold went up to $900/oz. By the 90's, it was around $400.
If you go to sell gold, you have to have the assay on it. The only way to avoid that is to use coins - pref. USA coins.
As for "..precious metals go up in value, paper money goes down..", that's not entirely true. Paper money is NOT an investment. When the government prints it by the ton, each bill becomes less valuable. Precious metals do not always go up in value, but they are a tangible asset.
True...but what would that same $5k invested in the stock market be worth today?
I think silver will trade at over $20/oz by 2011. In your posession will always be worth more than a "stock market" price. Only time will tell how good or bad an investment it may be.
If you want to compare the value of gold vs the Dow, the winner apparently depends on which time period you choose. See link: Does Gold Beat the DJIA? It Depends -- Seeking Alpha
If you want to invest in something, do your research. If you want to invest in something & make money, employ an unbiased expert in the field.
Opinions certainly vary.....mine is that gold/silver/platinum is not something to expect to use in a 'Katrina' type situation. If you take a situation where people are starving, a live chicken is more valuable than a pound of precious metal. I don't recall hearing anything about people using precious metals during Katrina. In a SHTF situation, good food, water, weapons, ammo, and a clear logical brain will be needed.
Bunker Hunt tried unsuccessfully to corner the silver market in the 70's. The total amount of silver on earth is far too great. The total amount of gold on earth about the size of a cube 100 yards on a side. Own a piece of that, and you own a finite resource. Since they have all but stopped making photographic film, which used to be the largest consumer of silver, they have tried hard to find another way to consume it. Anti-microbial? Yes, it is. So what? There are many cheaper alternatives.
Your best bet is to spread your money into as many commodities as you can afford. Guess what? That is what the Chinese discovered.... They are now taking all of the money they used buy U.S. Bonds with and now buy 17 commodities with it.
You have to have something that is more convertible than the Chinese do. Buy silver if you want, but gold is a far better choice in my opinion. You don't have to buy ounces, the 1/10th ounces store just as well.
I bought a 100 TRILLION dollar bill at the last gun show. It is actual Zimbabwe currency. That is 100,000 BILLION DOLLAR bills. Why do I care? Because in 1980
1 Zimbabwe Dollar = 1 US Dollar
Don't think that can happen to your paper money? Only time will tell.
(Did I sound a little cranky? )
The U.S. also collected gold and silver coins to destroy...instead of currency backed by a commodity, it is back by the full faith and credit of the govt....yikes! I think the perspective of those that buy silver or gold for a SHTF scenario is that the cash in the bank or in your wallet is only valueable if the govt. has good credit...even in bad times there has to be some form of common currency. In Iraq and Afghanistan even after a town or village is blown to bits and there is no infrastructure a micro economy sprouts in 4-6 weeks in most cases. Gold and silver have value as an infant economy sprouts. people have more faith in gold and silver especially in bad econimic times. Yes food and goods have trade value. I believe that ammo has huge trade value, but I disagree with your assesment that gold and silver dont.20 years ago, silver was running about $7/ounce. Today, it's $20? Sorry, guys - that doesn't excite me. Land we bought 20 years ago for $250/acre sold for $2500/acre 3 years ago. Commodities make me nervous, primarily because they are driven by forces I have no control over. In times of economic collapse, as others have stated - food and other goods have trade value - precious metals don't. Look at Germany in WWII - they were collecting precious metals from all sources, yet they converted precious little of it into hard currency. While I have SOME precious metals, it's quite modest in terms of any other investment, including firearms. As an old saw goes - "In times of trouble, money can buy you love - but a gun will get you the money AND the love!"