Silver question

[Bill B]

Discussing with the wife about getting silver and the question came up, "junk silver" coins, or bullion?
The purpose of the purchase is two-fold, limited protection against hyper-inflation, and trading currency if SHTF.
What are your thoughts and opinions?
Links to other discussions would be good too.

 

[MarkR]

Bullion is more for preservation, junk silver coins more for barter/trade, but also could serve both purposes. If funds are limited, I would go with junk silver. Bullion wouldn't serve you as well for barter/trade, since it's not as well known, questions about authenticity, purity, weight, etc. whereas pre-1964 US coins are universally accepted. Bullion also comes in different forms, such as US Silver eagles, silver bars, blank ingots, mint stamped ingots, etc. If you want a mix, and you have the funds, go with US Silver Eagles, and pre-1964 junk coins. Also, FYI - if you order directly from a mint, there is typically a waiting period that can be from 4-6 weeks, to several months., and it's more the latter with increased demand.

 

[HandK]

If the SHTF Guns, ammo, Food, & Water will be currency. Just my two cents worth!!

 

[infidel]

Personally, I plan to never own silver or gold. This has been discussed here before, but I will reiterate how I feel about it.

If we both had $1000 and I spent all of mine on preps and you spent 1/2 of yours on preps and the other 1/2 on silver, who would be better off in a SHTF scenario? I would say I would be.

Silver won't keep you warm, safe, or your belly full.

Some may say," But wait! I will be able to buy many things with my silver when SHTF because it will be worth so much more!"

To that I say: Good luck finding people with excess resources that would like silver instead of something that will physically help them survive.

Unless you are rich and have enough preps to last you any SHTF scenario, I say spend money that you would put towards silver on preps. Long term storage foods, high quality water filters, solar panels/battery bank, generator, or save up for a BOL. These things aren't cheap, but neither is silver. However, these items can be USED.

Like I said, I plan on putting my money towards preps instead of precious metals, but that's just me

 

[Bill B]

To me this would be another part of getting ready. that is in addition to, not instead of, prepping.
I do appreciate the re-iteration of what many do forget.

 

[infidel]

To me this would be another part of getting ready. that is in addition to, not instead of, prepping.

Absolutely true. Prepping should definitely come first. Like I said, if I was comfortable with my amount of preps (lolwut?) I wouldn't have a problem throwing some money into gold/sliver and watching it gain money over time.

 

[xamsx]

I 100% agree with infidel, but if you still decide to invest in some, I'd go with what MarkR said and recommend buying the US 1oz. Silver Eagles. Why? Not only do they have more well known "official" information on them, like he said, but because when/if you ever decide to trade them in to a dealer, those silver coins are some of the only pieces of silver that don't have to be reported to any government body (e.g. IRS, etc.), if you're selling over a certain # (forgot it, sorry!) of troy ounces in weight. The same goes for US 1oz. Gold Eagles, too, IIRC..?

This is according to a video interview I saw a few months back on YouTube with Mark Maloney from GoldSilver.com, which I would post if I could find, but it seems to have been taken down by the uploader.. Sorry.

 

[XtremeVel]

Have everything else in order first. I'm not currently sold on the investment potential of silver ( missed that opportunity in late 70's ), but do recognize it could be a great asset. Figure there will always be something I forgot to plan for, and silver could be used for barter. It would be one prep I wouldnt have to worry about shelf life or have to rotate.

 

[LEaSH]

it's easy to collect junk silver (jewelry, knicknacks, figurines, etc.) for pennies at garage sales and things like that.
I don't know what I'll do with the crap, but when you come accross stuff for cheap, pick it up.

Tarnished platter for $15? Chains, rings, and pendants mixed in with costume jewelry?
I've even pointed out to the sellers that they could recycle some the stuff. They just shrug and tell me they'd rather just sell it as is.

 

[ar15_dude]

If we both had $1000 and I spent all of mine on preps and you spent 1/2 of yours on preps and the other 1/2 on silver, who would be better off in a SHTF scenario? I would say I would be.

Silver won't keep you warm, safe, or your belly full.

The above is generally true, unless...
your home and preps are destroyed/lost/stolen/confiscated/ruined, or you are forced to evacuate with only the ability to take what you can carry. You then need concentrated value to start over or obtain basic essentials, and silver/gold could provide that.

Prepping should not be all-eggs-in-one-basket, not any basket.

 

[sur+rifle]

The above is generally true, unless...
your home and preps are destroyed/lost/stolen/confiscated/ruined, or you are forced to evacuate with only the ability to take what you can carry. You then need concentrated value to start over or obtain basic essentials, and silver/gold could provide that.

Prepping should not be all-eggs-in-one-basket, not any basket.

Yes. Precious metals have proven to be a practical means for providing seed money when forced to evacuate. WWII provided an ironic example of this. Many Jews and other persecuted groups escaped Nazi Germany with precious metals allowing them to start a new life in the US and other parts of Europe. And a few years later many Nazi officers fled Allied held Germany with precious metals to start life anew in South America and Africa.

For those who missed the beginning run up in silver and gold, you may consider stocking up on nickles. Right now, the metal content of a nickel is roughly equivalent to its face value. So this provides a no lose investment. If the price of the metals go down, you still have the face value. If the price of the metals go up, you will later be able to cash in. The same thing goes for pennies from 1909 to 1982. See here: Current Melt Value Of Coins - How Much Is Your Coin Worth?

But you will have to hurry as there is a big push for the government to debase these coins just like was done with silver:
Numismaster.com

 

[infidel]

For those who missed the beginning run up in silver and gold, you may consider stocking up on nickles. Right now, the metal content of a nickel is roughly equivalent to its face value. So this provides a no lose investment. If the price of the metals go down, you still have the face value. If the price of the metals go up, you will later be able to cash in. The same thing goes for pennies from 1909 to 1982. See here: Current Melt Value Of Coins - How Much Is Your Coin Worth?

Holly freaking crap I had no idea!

 

[SemperFiUSMC]

Unless you plan on shooting werewolves, get your prep items first. If you have a years worth of food, ammo, and living supplies you don't need currency in a SHTF. Food, ammo, and living supplies will be the currency.

 

[Scarnucci]

A couple of posters have implied that food, ammo and living necessities take priority over any PMs and would be used as currency in a SHTF scenario.

While I agree wholeheartedly that the above are the cornerstone of good preps, I disagree about them being used as a "currency" so much.

The very last thing I want to have to part with is my ammunition and food supplies. I've stocked those for a reason, and that is to keep me and mine as well defended and as well fed as can be.

Having said that, there may be some things that I have overlooked, or I need to replace. Perhaps I need to persuade someone for a favor. I would much rather part with some PMs than put some ammunition into my local area, or take food out of my pantry and give it away. More ammo floating around in my area ultimately makes me less safe, or takes potential food out of my mouth.

If bartering is commonplace, I believe that it would be more convenient to carry a couple of silver coins in my pocket instead of a 550 .22 bulk pack. If I need to pass a check point without hassle, or cross some local roadblock, should I carry every caliber I stock, just so I can have the right ones for that particular guard? Or does it make more sense to have a handful of PMs that can be used more generically?

Obviously I am not condoning forgoing your beans and bullets in lieu silver and gold in your preps closet. But to discount their importance and place (historically so) in these situations is foolhardy. To say that you wont bother with them at all and plan on trading bullets is misguided, IMHO.

 

[Cpt Caveman]

You might be able to find junk silver coins at a local coin shop now that the price of silver has come down some. I couldn't find a single junk coin any one would sell mewhile it was up because they were all sold to the refiner. Now's a good time to buy::

24-hour Spot Chart - Silver

IF you got yer beans bullets and band-aids squared away!

 

[SKSnut]

Economics are simple "buy low , sell high"Why is everyone buying silver and gold right now with the prices so high? I bought in when silver was 4-6 dollars an ounce and gold was 400. And don't say its for SHTF, ya can't eat it, and i wouldnt take it in barter.

 

[Scarnucci]

The last time silver was $5 was in 2003. Should nobody have invested in it at all in the past 7 years because it hasnt been at $5? That is just stupid.

Congrats on getting in when the getting was very good. There are those who would still suggest that silver has a bright future ahead of it and that today's prices are a deal.

 

[imjammin]

Each is usefull for completely different purposes, it depends on what you are looking for out of the investement. I think some of both is a good general anwser.

 

[Libertarian01]

To All,

I believe that when talking about a truly long term SHTF situation a good rounded cache of supplies will be vital and critical to staying alive.

That said, most survival materials will NOT function well as society begins to rebuild or perhaps even on the road to recovery.

Currency, by general definition, possesses the following qualities:

#1) Portability - Silver has this. Weapons and ammo do not.
#2) Divisibility - Silver has this. Weapons and ammo do not.
#3) Durability - Silver has this. Weapons and ammo have this (at least for our lifetimes)
#4) Stability - Silver has this. Weapons and ammo may have this, but definitely will NOT with regards to collectible value in a SHTF scenario.

As a matter of fact all precious metals have the above traits.

Imagine if you will a trade between "Farmer Bob" and "Survivalist Ed." Ed has stores of food, weapons, ammo and all the critical things to survive. Bob has fields, chickens, pigs, cattle and so on. Ed wants to enjoy a good steak on the grill and wants to buy a small cow from Bob. How much ammo is the cow worth? Weapons? If a weapon is that a pistol or rifle? Does that include ammo?

Now, in the beginning this really won't matter. Bob & Ed will barter and come to a mutually agreeable arrangement. What about the second time Ed wants an animal from Bob? Now Bob already has a (_____). Does he really want another one? What price will he want now?

Or, let us suppose that Bob doesn't have something that Ed needs. Ed has to ride his horse or walk a mere 15 miles to the nearest operational store/trading post. Does Ed REALLY want to carry: three (3) shotguns, two (2) AR15's, and Ammo for each? Ed has no clue what his weapons or gear will be worth. Besides, these things do not fit the criteria #1, portability.

People always want to carry their valuables with them to go to the store. Easy enough in a system that accepts plastic. Afterwards...?

Do NOT overlook the good possibility that you will NEVER experience a large SHTF in your lifetime. The system may hobble on from today until the day you die, that will hopefully be many decades from now. Firearms will probably be a good investment. I would never argue that. The rest of a huge laundry list of "used survival gear?" That will be arguably a less stable investment.

Silver and all precious metals will be good, stable investments no matter what happens. Silver may not increase in value as much as a rifle, but it will increase in value.

Precious metals may fluctuate in value, thus weak on the stability side. I believe they will always have value, and so will hold up well on the durability side. I believe this because for over 2,000 years most organized civilizations have valued silver, gold and other metals.

No matter what you choose, consider diversity to be your best insurance against a total loss, SHTF, TEOTWAWKI, or trudging along. Pick your poison.

Regards,

Doug

 

[DaCoach]

Silver should be looked upon as any "other" investment. It can play a role in a well diversified portfolio. That being said, it still needs to be treated like any other investment. You should not overweight your portfolio in one, or a few, asset classes. You also need to be aware that silver is a highly volatile investment. In fact, its volatility measurement is very close to that of the stock market. Furthermore, like any other investment, there is a right way to enter the market. It is better to enter the precious metals market like you should enter the stock market, and that is through a dollar-cost-average (DCA) program. You want to purchase this investment at consistent intervals over time. This will help you average out that price you pay over time (ie. you will by some at a high price and some at a low price). Like any other investment, it is unwise to try and time the market.