As I can afford to do it, I have been buying silver. Mostly silver rounds. I have a small stash of silver rounds primarily in hopes of hedging my bets against economic downturn or to hopefully capitalize on rising prices at some juncture, assuming they go above the current spot rate. I also have to preface this article, with that I know very little about the precious metals market, and I probably should be deferring to someone with more knowledge, however, I don't think I will need to get that technical. My experience is based on speaking with other like minded individuals who have similar mindsets about the economy.
Now, why is this important? Well, as stated, they are familiar denominations and types. Second, if the price of silver goes up, so does the value of the quarter, dime, or nickel. Again, why is this important. Well, in the event the economy takes a slide, and the price of silver, lets say, goes up five times it's value, I can use a nickel will be worth the equivalent of eight dollars, and I can use that to purchase food, without having to worry about using a silver round and having the farmer or merchant 'make change.' It will also allow for many other barter opportunities with smaller denominations as well. The security factor in here, as well, is that a would be intruder or thief might just mistake it for a "jar of change" and let it go because it is too heavy to carry. Just thinking out loud with that one. Another advantage is that with Junk silver you would not have to carry much of it, and it is easy to hide on your person.
Either way, as inflation continues to rise, unemployment stays high, it seems assumed that precious metals are going to remain at a higher rate than they were just a few years ago.
How much junk silver and silver rounds should I buy? Or you for that matter? It is suggestive, depends on what you are comfortable with, how much research you do, etc. Some coins are worth more than others, based on rarity, year, etc. I personally suggest staying with he most common as the denomination and actual silver spot price will be what is most widely recognized in my humble opinion.
Additionally, my research has shown, and please keep in mind it is limited, that silver will continue to outpace inflation in the long term. Again, I reiterate that I am no expert, but it sort of makes sense to me. Other areas that might push up the cost of silver based on my reading are it's use to purify air, water, in electronics such as computers and mobile phones, and it's antibacterial properties. Industrialization of emerging countries also is a factor in the price rising. Countries such as China and other nations are also consuming more precious metals for their electronics, ownership of bullion, etc.
In conclusion, I think the cost of Silver and other precious metals are going o go up and I am going to continue consuming it to try and hedge my bet(s) a bit… How about you? What are your thoughts on silver?
texaspatriot Thanks! The one thing I have not done is put myself on a consistant schedule like you have to purchase a set amount every month. I should do that.
For the sake of my own privacy, I will say that if an econmic collapse occurs, my family will be able to weather the storm for quite sometime. In a nutshell, my three year rate of return has been about 19%. S&P did about 13%. Silver did not perform well in 2012, down about 17% while the S&P was up 13%. Is that discouraging? Not too me. I just see it as a good time to buy more silver. The stock market is so reactive to baseless information and valuations.
one of those provisions runs out.
suburban texaspatriot Yep…right on point. My bug out bags already have a set number of bullion in each one. As a family, we can handle a loss of one or two bags and still be fine. Spreads the risk load quite well.