When prepping, the focus is heavily on items for survival: food, water, gas, guns, ammunition, and anything that helps you survive off the grid. However, it is important to realize that eventually, despite all your preparedness, you will need to make purchases. Should the economy collapse completely, or a super-storm like Sandy takes out the entire country, you will need to have a means of purchasing food, clothes, water, gas and more. This is where precious metals come in, to help you maintain your financial preparation in a SHTF world.
Financial Preparation in a SHTF World
Gold and silver have always been considered a form of money. Ancient civilizations who had no knowledge of each other, used the same two metals to barter and trade with. Once upon a time, many governments backed their paper currency on the amount of gold stored in federal vaults, this was called the Gold Standard. Our circulation coins carried gold until 1933 and silver until 1965. In modern times, we have been convinced by big government to store our gold and silver in vaults and rely solely on the dollar. Now, baser metals are used for coinage, and if the dollar fails our paper and coins will be worthless. That’s because we have fiat money. Essentially our money runs on the faith that our money has value because the government told us it does.
It is important to realize that all fiat currencies have failed throughout history. A dollar collapse would send all the world’s currencies into turmoil. Why is China stockpiling gold? For this very reason. When the bottom drops out on the dollar and the faith in money is gone, hyperinflation occurs. This will send people scrambling and hiking up prices so they can afford to eat. The world will soon begin to see that gold and silver are the best bets for financial security. In order to survive the downfall, people and governments will once again turn to the tried and true monetary system, gold and silver. At this point, there will be a rush on those two commodities and only the savvy will win.
A prepper knows that currency is important. Stocking up takes time and money, but don’t shy away from what seems like an expensive investment. Buying gold and silver now will save money in the long run. Gold and silver coins are small and very portable, they can fit in any Get Home Bag with a little planning. Some mints make gold and silver bars that can be easily broken into smaller pieces, easy for trading and getting change. Investing in gold and silver does not have to be an overwhelming process. Start out small and build up from there.
The best place to begin is silver, as it has a lower price per ounce than gold. One ounce coins are a decent size and mint tubes, containing 20 coins or more, can be purchased for a reasonable price. Fractional gold, like 1/4 or 1/10 ounce, is a good way to begin investing in gold for lower amounts of money. The important thing is to get high quality bullion. Bullion refers to precious metals that are made into non-circulation items such as bars or rounds. For prepping consider small bars, which are lightweight and highly portable, as well as coins and rounds.
Don’t have the ability to invest in silver and gold? Remember that pre-1965 US coins, such as quarters and dimes, were made of 90% silver. These are considered “junk silver” items, but since a prepper is interested in the metal content, they are an easy way to get silver by just sorting through your pocket change. See this great infographic that shows you how to find junk silver.
There are many things a prepper needs to consider when getting ready for an economic collapse and money is a vital one. Relying on the modern currency system will inevitably cause further hardship. Preppers need to be prepared to switch to gold and silver at a moment’s notice, which can be done by beginning to purchase gold and silver now. Some will highlight the benefits of investing solely in gold, others will want to convince you that silver is the best way, but the reality is that stocking up on any precious metal will only create a stronger bug out plan for you and your family. Regardless of what method you choose please ensure that you are planning for financial preparation in a SHTF world