I’ve read a few article’s lately regarding gold,junk silver,and such.How much to buy,how much of each,when and where,so on and so on.I have a few issue’s I’d like to raise and see what everyone thinks about it.
I’m not in a situation where I can do a lot of investing in anything I can’t eat.I have a decent stash of silver that I’ve either been handed down,or stumbled across in change,swap meets,whatever.Nothing that I’ll ever retire on of course.Can’t afford anything big in gold,other than jewelery or such,which won’t be a big barter item anyway.
It seems to me that many survivalists either plan to profit from SHTF in gold and silver,or plan to keep they’re nest egg forever.Granted,gold and silver are a hedge against inflation.I’m not against them for long term investment,but in a total crisis,are they worth it in the long run? Let’s run some number’s!
I’m going to pull a few number’s out of the air,as there is no way to actually count them,so bear with me.
Let’s assume that 1 percent of America is serious about prepping.That gives a number of say 3 million.Then assume that there are another 1 percent that are self sufficient,such as family farm’s,another 3 million.That means there are 300 million or so that are totally unaware and unprepared for anything,other than what’s in the cupboard.
What happens when the big event happens? We all go to our chosen bugout area,whether it be the middle of the forest,the mountain’s,whatever.Well,guess what? It will be like the Iron Maiden song,”Run to the hill’s” for the rest of them!
What’s this got to do with precious metal? I’m getting there!
These “refugee’s” will be unprepared.They will have nothing to barter with.They won’t want gold or silver,they need food! I saw on another post about roving trader’s,bringing goods to your “village” to trade.
First,he has to have what you want,but you should have it by then.He’ll need food as much as anyone.He will take your gold and silver as fast as anyone,but still needs food!
Food will be a better barter item in the short term,until a trade route is established.If your bugging out to the wood’s,followed by the rest of your city,your gold is really worthless,in the short term.If you run your 4×4 over a rock and put a hole in the oil pan,you might end up gluing a Krugerrand on to patch the hole!
Gold,silver,copper,and nickel,no matter what you hear,are industrial metal’s.Aside from cosmetic value,they are really useless otherwise.Gold and silver are used in electronics,nickel and copper are used in aviation and electrical.As far as saving nickel’s for metal value,can or will you smelt nickel’s for face value?You need to separate the alloy’s to get the metal value.
Casting metal for replacement part’s? Have you ever cast metal? Silver and gold are the easiest to cast,but the least durable.Zinc,copper and aluminum are the most durable,and least expensive.I’d rather melt pennies than gold,cost wise.
Unless there is a total collapse of the entire country,paper money will still have some value,adjusted for inflation,deflation,whatever.To a refugee,20 buck’s is still 20 buck’s.If they’re willing to offer you 20 in paper for a bag of potato’s,go for it! Look at every country we’ve ever invaded,we offered script money in exchange for the old currency.I’m sure that with a minimal govt in place,the same would happen.Sure,gold and silver will go thru the roof by that time,but you can’t eat it!
My bottom line humble opinion,gold and silver have a place,for a long term disaster.I would not invest every last silver dime into them for a long term crisis.
Dean in Az