For several years this actor and that is touting the value of adding gold to your portfolio as a hedge against inflation.
While that may be factual in normal times it doesn’t hold true when a global financial meltdown occurs – here is why.
The average citizen has no concept of the value of gold because he never could afford to have any other than a piece of jewelry perhaps and dealing with gold coinage is foreign and they will shy away.
90% Silver coins (before 1965) on the other hand they can warp their head around because it’s seen in their pockets in change every day and mentally has value.
But here too it’s conceptual in that they realize they are going to be able to exchange precious metal they are comfortable with handling for an item they want or need.
Understand the measure of silver and how to best buy it and own it for future times. A measure of silver is in Troy ounces, 12 Troy ounces to a pound.
The most often seen and handled silver coinage is dimes and you can also use the denomination that 10 silver dimes equal one (1) Troy ounce. In today’s market when silver is at an all time low below $15.25 a Troy ounce it can be had by anyone by buying an ounce a week without affecting their budget negatively. Dimes are easy to handle and store and are measurable for later use in making purchases in a barter community.
How much should you own and what value might it have in a financial meltdown?
Take present value in July 2015 at $15 a Troy ounce in a collapse it will increase 4 to 5 times its present value normally, maybe a bit more but for realistic number we can use $60 a ounce, meaning each dime will be worth $6.00 in trade. A pretty significant return on investment wouldn’t you say?
How much to own? Let’s be realistic here too as to not go hog wild buying what should only be 1/5 of your investment for your safety and being able to survive a financial meltdown. For value sake lasting a 5-year period in a barter society owning five pounds of 90% silver dimes or using one pound a year. At present value we are looking at $15 an ounce x 12 Troy ounce x 5 = $900 or 600 silver dimes or 12 rolls.
That may be beyond some families ability but owning a pound of 90% silver dimes is not about $180.
Consider when edible food and pure drinking water are scarce and needed to survive being able to use a silver dime to buy a week’s worth of bread or a gallon of good, untainted water?
A small sacrifice now a huge hedge on costs of goods later.
[…] talked about the benefits of holding a hard asset like silver as a hedge against the monetary system collapse. The Greeks used silver bars for trade in the 4th century BC, and it backed some currency or […]