Sunday, December 12, 2010

Silver in a SHTF situation.

When it comes to investing in silver you`ve got a lot of options. You can buy 1 oz. rounds, silver bars, Junk silver or “hypothetical” silver etc. As I discussed in the silver vs. gear post, I think it’s a good idea to buy some silver. Silver can function as a backup currency i emergencies. But is silver rounds the best option?

Silver rounds: Silver rounds come in the form of 1 troy oz. coin. These rounds are marked/engraver with the purity percentage. This fact gives a lot of power to the round. Basically everyone knows what a 99,9 % pure silver coin is. The weight of a round is quite good, only 1 troy oz. compared to a silver bar 5-10 troy oz. Some silver rounds like the stagecoach round can be divided into four separate pieces, ¼ troy oz. each. All I all I would say that the 1 troy oz. round is the most unified measurement, (1 oz. is 1 oz).

Junk silver: Junk silver coins (pre 1965 minted U.S. coins) have a silver-alloy percentage ranging from 35-90 percent. Survivalists often regard the junk silver coins as a good investment, in the case of an economic crisis. “Precious metals will always have an inherent value”. I agree with this statement but I’d like to point out that the silver percentage of pre 1965 coins is not common knowledge, in most communities. This information is more survivalist specific. To be on the safe side I recommend 99.9 % silver rounds, everybody knows watt 99,9 % means. For example in the situation I referred to in the post silver vs. gear, try to explain the silver percentage of pre 1965 coins to the soldiers at the road block when the SHTF.

On the other hand junk silver may play an important role in day to day trading in a SHTF aftermath. In this situation 1 troy oz. of 99.9% silver is to valuable to be used as a standard currency. You can’t by regular stuff like food/cloths with that kind of money. It’s like buying a cart of milk with a 500 € bill + what kinds of change will you get?

Silver bars: I’m going to make this short: Silver bullion bars are worth to much in the SHTF aftermath, it’s more practical to have silver rounds (might be difficult to split a 10 troy oz. bar into 10 equal bits). In short by 99,9 % silver rounds over silver bullion bars.

”hypothetical” silver: In this category I count stuff like silver stocks and silver bond (whatever). If the grid goes down, civil unrest arises, economies collapse you will have an hart time to get your “hypothetical silver” into real physical silver. Remember that a stock is in principal just an idée something of value, not something of concrete value.

To sum up; silver rounds are good because their percentage is verified. When you are bugging out silver rounds are a good alternative, (you shouldn’t only have silver in your bug out pack), Junk silver might dominate in a SHTF aftermath so have some junk silver hidden in a buried cache somewhere, dig it up in the aftermath. And remember if your cache is fond by someone, else before the SHTF, it`s just junk silver.

Mr.E:s comments

I most agree that if shit hits the fan and money isn’t worth shit, silver is something most people will take as currency. In a situation were you need a ride away from the city after the society has collapsed and money is not worth more than paper, silver might be the ticket to freedom. So in that sense silver in a SHTF situation may be your savior.

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