The Truth About Precious Metals for Survivalists

precious metalsA friend sent me this article on Precious Metals and I thought you might find it interesting.

There are a few common misconceptions associated with precious metals and how they may not be helpful to a preparedness plan for either a SHTF scenario or potential economic collapse.

  1. If I can’t eat it, drink it, or use it to defend myself, I don’t need it.
  1. I’ll just get stuck buying some worthless coins and never get anything out of them.

Although these are some generally popular perspectives, they are completely misguided and incorrect.

So how can precious metals be useful for survivalists when the economy collapses?

The truth is, precious metals are essential for survivalists and will help you stay prepared for all sorts of upcoming turmoil.

Below, you’ll find rebuttals to the common misconceptions about gold and silver and how they can literally save your life when the SHTF…

  1. “If I can’t eat it, drink it, or use it to defend myself, I don’t need it.”

Precious metals have been used as a stable store of value and a medium of exchange for thousands of years. Although you cannot actually eat, drink or use it to defend yourself you can use it in barter or trade to get any potential needed items.

For example, if you are trying to trade with a neighbor for ammunition and you only have water, food, ammunition and first aid, chances are, he/she has those exact items also. You need to pay with something that can be used as a medium of exchange so that your neighbor can buy whatever he/she may need from someone else.

You won’t always know what people may need in a barter or trade situation. That’s why having a form of currency is essential!

  1. “I’ll just get stuck buying some worthless coins and never get anything out of them.”

I say this to prospective precious metals buyers, it seems like, a thousand times a day:

“Stay away from collectible coins! Don’t do it!”

Collectible coins, or “numismatic coins,” are like art. Their value is largely subjective. Some people might pay millions of dollars for the Mona Lisa. Personally, I wouldn’t pay 20 bucks for it!

Don’t put yourself in a hard spot to try to get a buyer who will pay as much as you did to get some mint special coin. The liquidity just isn’t there when compared to gold and silver coins, bars, and rounds that are traded at their melt value.

So buy BULLION!

Bullion is the term that is used when trying to buy precious metals closest to the spot (sometimes called stock market) price. Ask your buyer, if they don’t have it listed, how much over spot you are paying per ounce. The price of gold and silver is fully transparent and can be determined around the clock around the world. Getting the lowest price per ounce is generally the smartest choice.

After the 2008 real-estate fiasco, the economy was trash! In 2011, however, silver jumped up to $40 an ounce even though the rest of the country and economy were still trying to pull themselves out of the grave. Precious metals are not only a good option for a survivalist perspective but they also help to hedge against inflation and perform well in periods of economic turmoil.

What You Need to Know for a SHTF Scenario

In a barter/trade situation, it’s important to remember that having different sizes and metals is always smart. Pre-65 junk silver is a great option, it is in smaller fractional sizes, and, because it is 90% silver (containing 10% copper), it will wear well being handled more frequently. Many coin stores do not bother selling junk silver. If you’re new to buying precious metals, junk silver, in particular, call around and ask local coin stores if they sell “junk silver” or pre-1965 silver coins. If a local store isn’t an option, there are a number of reputable online companies you can depend upon to deliver the junk silver to your door.

Silver rounds, especially in the smaller fractional sizes, is also an attractive option. And consider getting gold for some larger cost barter situations too. Fractional gold coins are small but carry a larger amount of value compared to silver.

With our government racking up a national debt of over 19 TRILLION dollars and climbing, it’s time to start preparing for our currency to be obsolete in SHTF scenarios.

Remember: “You won’t always know what people may need in a barter or trade situation. That’s why having a form of currency is essential!”

Money Metals Exchange website: https://www.moneymetals.com/
Guest post by Dan Novak

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3 Responses to The Truth About Precious Metals for Survivalists

  1. admin says:

    You are right you want to have metals in your hands.
    Howard

  2. Gail says:

    I dont understand why metals will be of any use or value when shtf and money also is totally useless. I would want things i could actuall live on, meds, water, food…what am i going to do with gold and silver coins? The article didnt answer this adequately for me?

    • Noah says:

      I agree with the author of this article, although precious metal purchases should only come after other survival basics are covered. Your first plan and hope is to survive on what you’ve stored — food, water, gear, etc. But at some point, you’ll need something you don’t have. If you barter, you will have to find someone who has that “something” and is willing to take some other good that you have in exchange. This may not be as easy as it sounds!

      Take antibiotics, for example. If my wife needs a bottle of amoxicillin for an infection, I have to, first, find someone with amoxicillin who is willing to barter. But then I have to give something up — something from my limited stash of goods. What if the amoxicillin guy wants ammunition or some other high-value item that I don’t want to give up? I’m stuck.

      In an economic collapse where the dollar has no value, precious metals are still precious. I could give him a few coins from my junk silver stash, get the amoxicillin, and now he has a currency that will allow him to make purchases down the road.

      Does that make sense? Economies based on pure barter never last long. Even islanders out in the South Pacific had to come up with stone money as their fiat currency!

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