In this way, your wealth is already being stolen from you, bit by tiny bit, through gradual price inflation. At the same time there are pros and cons to any investment. These factors will help determine how successful you are at putting your investments to good use.
This article will go through some of those considerations so that you can invest smartly and be more prepared for a whole variety of potential financial catastrophes. For example, some companies allow you to buy gold and silver that they then hold for you in their own vaults. You can trade on the price increases and make profit without ever having an actual piece of gold in your possession. Some people still think this is a better option than holding paper money.
The problem with this is you have little way of knowing if the other party actually has the gold they claim to have. They could also be shut down or put out of business, in which case you may have no way of getting the gold your receipt represented. That means the best way to buy and physically hold your gold and silver in locations you control.
Any other arrangement simply makes it too easy to be defrauded, or for unforeseen circumstances to wipe out your precious metals before you ever see them. Ask yourself: if the financial system collapsed in my home country, would I be able to easily access my precious metals? Buying gold and silver is step one. Figuring out how to safely store it, however, is just as important.
Is Investing In Precious Metals A Smart Move For Survival?
In a breakdown scenario, you can assume that anyone known to have gold, silver, and other supplies will become a target. In addition, as during the Great Depression, there is plenty of historical precedent for governments confiscating gold from citizens during a crisis. Therefore, storing precious metals using this kind of service does not allow you to hold your own gold. There are plenty of discrete ways to do this, some of which actually help preserve the metals.
You want to look out for oxidation and damage , which means putting all your metals into a waterproof package before putting them away. You can go online to easily buy sleeves and coverings that will help protect your metals. However, cool temperatures also help , and since your freezer is rarely a place that any robber pays attention to, filling what appears to be an ice cream container or T.
You may want to leave a copy of this map with someone you trust.
Here’s a Useful Guide to Buying Precious Metals to Protect Your Assets
Another great idea is placing them into the soil of a large pot and growing a plant. Neither benevolent in-laws nor a midnight robbery crew would ever be likely to suspect that there was treasure hidden inside the dirt. These paid vaults are probably the next best thing. It may be harder to access your gold, but they will be much safer than they would be with any bank.
This contrasts with facilities that give you a paper receipt in exchange for a claim.
Survival Gold and SHTF Silver Will Make You A Disaster Target
Therefore, if you go that route, research countries that will be most likely to be insulated in a crisis, and likely to allow for easiest access to your investments. Switzerland and Hong Kong are both seen as good countries for this purpose. Gold and silver are commodities that traders might buy and then sell just a year or two later for shorter-term profits. However, for prepping and survival purposes, the idea is not to make money, but to protect the money you have from financial calamity by putting it into a physical asset. Gold always has some value and it is an excellent hedge against the inflation that fiat currencies are subject to.
Simply buy in whatever increments you can at a time, and hold it. In the meantime, all you do is hold onto it safely. If a crisis never arrives, congratulations — you now have an incredibly valuable nest egg of physical assets that you can pass down to your heirs! Some may have more value because of where they came from, how easily verifiable they are as genuine, and other factors, but they will all retain some value even—or especially —as fiat currencies become weaker. However, if the price of gold hypothetically went to ten thousand dollars per ounce, it would hardly be practical to try to buy a loaf of bread for your family with a one-ounce gold coin.
Same goes for an ounce of silver. Therefore, as with other types of investing, diversification is key. You should have precious metals in a variety of weights and formats all the way down to a single-gram or lighter, if possible, since these will be more practical for trade. Gold, with a higher value by weight, is more commonly seen as ideal for wealth preservation but less practical for bartering.
Realistically, it would probably also take some time after a collapse before gold and silver started being accepted as money. In the early phases, people will still be trying to use cash and bartering immediate items for immediate needs. Your preps should also address different phases of collapse. However, those with gold and silver who manage to make it to the later phases would have an immeasurable financial advantage as a more formalized post-collapse financial system began to take form. Every prep you make is at the expense of time and money you could have spent on others, so balance is key.
And plan very carefully regarding how you store the metals that you buy. As long as you keep all those considerations in mind, set up your monthly precious metals budget, find a reputable physical gold and silver dealer, make a long-term storage plan, and quite literally, go for the gold! Eric is a nature-loving writer, experience junkie, and former Boy Scout who never forgot that time-honored Scout Motto: Be prepared. Aside from camping and survival, he loves writing about travel, history, and anything he finds strange and unique! If you enjoyed this article, consider subscribing to email updates.
Excellent point! First published at Milesfranklin. Over the past six years precious metals investors have seen a barrage of negative news regarding the dollar. Yet despite the almost endless money printing and fundamental reasons why gold and silver should respond with higher prices, the precious metals remain well below their highs.
Butler also regularly reports how the banks who do the selling are the same ones who consistently end up buying the contracts back at lower prices. If this is indeed the case, the natural question that many wonder is why to bother continuing to invest in precious metals if the market is rigged? Or in the very least, why not wait until the manipulation has ended to then invest? Amazingly, these reports have enabled traders and investors to have a general idea of when a move up or down is more likely.
So while the COT report can be an informative guide, what it does not tell us is when we reach the true breakpoint. Which given all of the pressure that has been applied to the gold and silver markets over the years, has created a scenario where a big move caused by a short squeeze could occur without any further warning. You could wait until we see some sort of spark and purchase metals after the price has already gone up a bit.
Assuming that when the breakout occurs, it moves a little, before it moves a lot. Which is hardly a guarantee in such a highly distorted market. What do you do then? It may sound simple, although this sets up the kind of trading decision that many struggle with. Some analysts have suggested that we could have some sort of Sunday night announcement with a price reset. Where you get settled in cash at the current price, only to see the actual metal price then trade substantially higher. This is why you hear so many analysts talk about purchasing and stacking metals on a regular basis.
While avoiding trying to outsmart the market. Is it fun waking up so often and seeing the price smashed down just when you were getting your hopes up again? Of course not. The movie details some of the investors who realized the subprime real estate market was a bubble, yet had to endure quite a bit of stress and pressure while they waited for their trade to pay off.
In that to capture the really big wins in the market, you have to earn them. Where there is an abundance of evidence to suggest that prices almost necessarily have to move higher at some point. Fortunately, as long as you invest within your means and allow the element of time to be on your side, you can remove a lot of the emotion by keeping an eye on the fundamentals and remembering that all manipulations eventually do end.
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Just as this one will some day too. And when that does finally happen, I believe you will be well rewarded for all of your patience and perseverance. Major gold and silver bullion holders can partially release these metals for general consumption when the prices are high enabling profit differentials between old purchase prices and any current market rise in pricing.
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