A Practical Perspective on Gold and Silver

Last Wednesday our Self-Reliance Revolution Radio Show was based on the numerous reasons and evidences that I felt a financial collapse was imminent and what we can do to insulate ourselves from it. (To be forthright, the solutions were rushed at the end due to the fact that I ran out of time—which I always seem to do when I really prepare and research a particular topic. *Sigh* Maybe one of these days I’ll get this whole timing thing down.) Anyway, I’ve received literally hundreds of e-mails since that show, and have been asked for clarification as to why I believe investing in gold and silver is NOT a viable solution right now.  So, since I didn’t really get to do the subject justice on the show, I thought I’d take a little bit more time here and address it.

To be clear, my position on the matter of investing in gold and silver is that it is NOT the answer that so many would be led to believe. I base my opinion on this for several different reasons, not the least of which is the fact that Financial Preparedness is the second to the last in priority among the Ten Principles of Preparedness. In other words, before you get hit in the face with the reality of the financial consequences that MIGHT be suitably addressed with the possession of gold or silver you will be confronted with EIGHT other aspects of preparedness that will demand greater prioritization, attention, and resources.  As such, I feel that folks erroneously put investing in gold and silver ahead of more vital aspects of preparedness. I’ll address some other considerations which might give you pause to think twice about spending the money on gold and silver at present.

Keep in mind that we’re all about self-reliance here and yet the value of gold/silver puts a great deal of stock in the actions of someone else. When one invests in gold/silver one is assuming that someone, somewhere, at some point in the future will successfully bring about a financial rebound in which a person can exchange their metal assets for currency at a gain in profit. But consider this…who will make the decision which establishes that value and is it wise to rely on that person?  Who gets to pull the strings and officially inform the world that our economy is good again and thus the gold value can be lowered?

Who are the persons which have designated a value to gold and silver today?  I find it a bit unsettling that we’re denoting the value of these hard assets in terms of U.S. dollars—an “asset” that is quickly losing its own value. In other words, I find the fact that gold and silver being valued in terms of U.S. dollars is similar to Bernie Madoff telling me which investments are viable. You see, it’s all very relative and not even predictably so. While my example here is a very simplistic one, it’s still true at it’s base.  The value assigned to these metals is not based on an irrefutable law of physics or biology. On the contrary, it’s manipulated primarily by the powers that be.

When a scenario arrives in which commodities are in short supply, it won’t matter one bit that Wall Street says that an ounce of gold is worth $1,500 dollars when you’re needing to exchange it for essentials such as medical supplies, shelter, or food.  Any numerical value established by some pencil pusher will always be trumped by the person who has that which you need to obtain to survive.  At which point the gold will only be worth whatever the seller of goods says it is and no Wall Street Journal article or even the President of the U.S. will be able to influence it otherwise.

Anytime that you’re investing in something with the hope that it will gain in value, that’s a risk. I don’t think today’s economic environment is ideal for risks. While I realize that some aren’t actually “investing” in precious metals, I feel that it’s an important point to bring up for those who are. The time to actually invest in gold an silver was several years ago, in my opinion. To me it makes no sense spending today’s worthless dollars for metal that is evaluated in terms of worthless dollars. It might as well be Monopoly money if you can’t do much with it. Remember, even $1,500 ounces times zero is still zero.

I also feel that some are overestimating the amount of time they will have to actually benefit from the use of gold and silver.  I’m telling you folks, once the currency fiasco hits the fan, you will have only a matter of days, perhaps weeks before your precious metals will be deemed worthless as well because the focus will be on the essentials, not on the “someday luxuries.” Once things get settled after a major collapse (in terms of years, not months or days) then it may be beneficial to have some on hand. But frankly, I’m not expecting this next patch of difficulty to be a part of Act I scene 2. I’m expecting it to be the final Act in which case there’s a whole lot of overestimating going on again. It’s for this reason that I feel very cautious in taking history too much for granted as a barometer of what to expect. Yes, I believe that we’ve got a whole lot of “dress rehearsal” scenarios to learn from, but they will still be markedly different than the real thing. So yes, while we can look to how such and such a civilization made do with gold and silver when this currency went belly-up, I think there’s only so far we can take that lesson before we realize that what’s in store for us may be a bit more inconvenient.

To the person who would say “gold and silver takes up less space than wheat and water” I say “What an absolute fool.”  That’s assuming a heck of a lot; primarily that someone else will have what you need.  I would never dream of giving someone else that much power or influence over me, nor would I support leaving my survival/comfort or that of my family at the mercy of whether or not someone else prepared appropriately. I mean really, does that make any sense? You didn’t see fit to take the time and the work to put together real essentials, but you’re going to expect others to do so? I’m telling you right now, when that time comes and I’ve got what someone else needs, it won’t be gold I’ll be taking for it; it will be hard work, plain and simple.

Another faulty logic on the whole gold and silver premise is the assumption that the recipients of your commerce transactions will be established in such a way that you could actually USE the gold and silver as payment. Is your utility company set up to accept gold as payment right now from you?  Do you think they will actually have time or the inclination to do so when the fit hits the shan?  “Sure, she says sarcastically, let me just flip the switch and now the ATM machines will spit out gold and silver.” That kind of infrastructure and value system takes a while to establish. What will you do in the meantime?

So if you can’t use it to take care of your financial obligations, and there’s not much in the form or essentials that you can buy with it, what sense did it make to purchase it at such a high price in the first place? Precious metals are useless assets unless they can be easily converted into an established form of currency that already has the infrastructure to accept it at fairly determined values. Keep in mind that even gold and silver can get watered down in an economy that is flush with precious metals, but not enough essential commodities to actually purchase.  The whole “stabilizing my purchasing power” concept is a great concept, but not very practical when you actually mentally go through the logistics of using it. Person to person you might do OK with bartering with precious metals, but on such a small level you’re also more likely to run into supply and demand issues for the essentials you’ll need as well.

So, if not gold and silver, then what? As I always say, go back to your Ten Principles of Preparedness. I’ve heard some folks say that they are investing in gold and silver because they already have enough food and water.  That’s great, but how are you for all of the other, more prioritized areas such as medical supplies, self-defense systems, clothing and shelter?  I’m sure it’s possible, but every time I turn around I think of one more thing that I could obtain that would come in handy. Having said that though, if you do find yourself with money burning a hole in your pocket, then I’d invest in dirt instead of gold and silver. Invest in land on which you can provide a spot for permanent sustainability.  I’d also give the same advice to anyone who has any retirement funds or savings that they aren’t sure what to do with. Take care of the Ten Principles of Preparedness first, including eliminating ALL of your debt, and then take your preparedness a step further by finding a place where you can garden, raise flocks, pump your own water, and generate your own solar energy.

So, what’s my plan? Totally eliminating any possible debt. Paying all utilities and other monthly expenses a full year in advance. (Yes, they will be happy to take your money from you.) Be fully stocked on every imaginable need. Have a small amount of cash on hand for that 72 hours in which I can still make use of cash—but even then nothing bigger than a $10 bill, preferably in $5’s only. And then after all that we’ll be taking the next step of investing in land, free and clear (so that it can be considered Private property, not residential property); and then continue to build on it from there so that I may be able to help others along the way. Like they say, all that glitters is not gold. While the commercials and financial logic may sound enticing at first, when you actually try to plug gold and silver into a real life crisis scenario, you’ll find that it’s not as cut and dry as you might have thought. And if you’re really wanting to invest in some bright shiny objects after all of that, at least make sure you’re including some copper and lead in that acquisition. *grin*


Tags: 

© 2013 Of COURSE this post is Copyright Protected by Preparedness Pro. All Rights Reserved. NO portion of this article may be reposted, printed, copied, disbursed, etc. without first receiving written permission by the author. This content may be printed for personal use only. (Then again, laws are only as good as the people who keep them.) Preparedness Pro will pursue all violations of these rights just as vigorously as she does any of her other freedoms, liberties, and protections.


Comments

Another very educational read from you. thank you

well done! love it!

Good information....Made me think....however...since I've been investing in Gold and silver for many years on a small scale (I got my gold at $200 an ounce and silver at $8) I'm just going to keep it around and not invest any more and make sure there is nothing I'm missing in my preparedness kit! Thanks again!

Honestly? I love the idea of cashing out the 401K and buying land, but oh geez, it's a drastic step, my mind and emotions aren't there yet. Praying!!

I love that idea too. I would LOVE to OWN my own land, free and clear...2-5 acres, possibly....I'm just iffy about the 401k cashout....I keep thinking WHAT IF the dollar doesn't become worthless? IF it doesn't, and we cash out, we won't have any retirement funds...I'll have to discuss it with my husband, definitely.

Jennifer, If you can, I'd strongly suggest that you listen to the archived show I did just last Wednesday the 20th of April on the insurmountable evidences of an imminent financial collapse. I think once you hear that, you'll definitely find sufficient incriminating evidence of the dollar becoming worthless. This isn't about a feeling or some contrived finagling, this is simply the law of physics being applied here. It WILL fall. So apply the first Principle of Preparedness, Spiritual Preparedness, and discuss this with your hubby and your Heavenly Father. There are a lot of counter-intuitive things that the self-reliant will need to do in order to be ready for what comes, but do them we must.

My dad would have cashed out his 401k, taken the 40% cut from the taxes, and paid off their house back in mid-2008 (pre-crisis) but his work wouldn't let him. He would have had to quit his job. When you think about it, you need less retirement if you don't have a house payment or any other debt.

Love the idea of paying bills ahead...does that really protect you from price increases for a year on things like say utilities? I was wondering how that works since the price varies month to month. Thanks!!

It has nothing to do with protecting you from the price increases, rather it has everything to do with paying your obligations with dollars while they are still worth something. And yes, you can pay them ahead of time and have a credit with them.

Ohhh Kellene!!! You don't know how this post just stabs at my heart!!!!! I am, 19 (count them!) 19 payments from paying off my house! If I wanted to, (and I want to but hubby doesn't!!) I could pay it off from savings - not the emergency fund, savings! I have no other debt. I have a very good start on most of my preparedness basics thanks to you, but there are holes yet to be filled. (I realy would like to invite you and your hubby up here for dinner and talk about that whole house generator thing.)
My problem is, my hubby wants to build a new house. I got in a bad accident a few years back and broke my back in a couple of places, messed up a hip and both SI joints etc. Unfortunately, my almost paid off house has stairs. I have to admit, some days the stairs get the best of me and have thrown my back out and then I am in bed crying,praying and hoping the pain pill, muscle relaxers, anti-inflammatories etc. kick in so I can function again. My hubby means well, he just wants me to function pain-free, but the thought of selling is so scarey I can't think straight. I have shown him your articles and he thinks highly of them, but he thinks I over worry about it. I feel like things are going to come down in the space of the next few years, not 15 years from now when the new mortgage would be paid off.
I have been praying and I asked for a blessing, but the feeling I continue to get is fear - just plain scared. Please help. I know your answer is not "the" answer, but maybe it can help me organize my thoughts and feelings. There are lots of good, really good reasons my hubby and I can comeup with for moving, not the least of less pain for me and a whole empty basement for food and preparednes storage, but I am just so scared to sign any papers. Two hard to find good lots have slipped away because I am stalling (it is surprisingly difficult to find a lot in my area that ultimately wont have several stairs up to the garage door even in a rambler design.)I feel kind of silly asking for your help online, but then again,I figure that is why you are here - - to help people who may not have all the tools to make a solid decision. Any thoughts???

I have a couple of suggestions that may or may not work....Is there any way you could build a ramp? Or if the stairs are inside, I've seen some lift systems that you could install....

Ok. First of all you've got to recognize that the Fear is a distortion of truth. You simply can't give into that.

Secondly, if you want an answer from your Heavenly Father on this matter that's clear, you're going to have to work for it..."wrestle with the Lord" so to speak. You may find the perfect resolution is out there waiting for you, already built with what you need. I certainly wouldn't hesitate to pray for that. Timing is EVERYTHING with the Lord. After all, what would have happened if He had answered Elizabeth and Zacharias' prayers, pleading with Him to have a baby, when they wanted it? If He had granted to them their virtuous request, then the timing would have been all off in John the Baptist preparing the way of the Lord and baptizing him, etc. I'm sure it would have been just easy for Mary to have conceived Jesus AFTER she was married, but again, timing is everything. So trust that His timing is a part of your life and pray and search in earnest to understand it, to see clearly, and for the perfect resolution. Certainly you know He's capable of providing that.

I have to say, I would be sick to my stomach at the thought of going into such large debt right now. If it were me, I wouldn't purchase anything that I couldn't pay off in 19 payments if I were in your shoes. I'm with you on the guesstimation of timing of when things will really start to get rough--a few years at the most, not 15.

I love that your husband is concerned with your well-being, you're very fortunate in that regard. I also believe that it's a matter of PREPAREDNESS for you to be in a better situation physically. That's not something to mess around with, so I wouldn't oppose the rationale. But I just think that there's more than one way to skin that cat without going further into debt.

Also, how about we take a look at you getting your body healed rather than just masking the pain and letting it run your life? E-mail me directing (you can do that through the contact us section of the blog) and let's explore what resources I'm aware of that might help you.

Lastly, I have a rule, "when in doubt, don't"--especially when it comes to spending money! Keep in mind that that's NOT "when in fear, don't." I believe that we can feel confident in every sure decision for ourselves when we have His help. So if you're in doubt, then I always believe there's a good reason for such. But you can't make your decisions based on fear. Put yourself in control both financially and physically and make plenty of room for HIM!

Thanks for expounding on this, Kellene. I'm always wishing you had another hour at the end of every show.

Donnella, thank you very much for your kind words. Doing a radio show with NO human interaction to measure the connection with the audience is pretty challenging. So I appreciate getting some insight as to what folks are thinking on the other side of the signal. :-)

This is excellent advice. Most advanced preppers on the internet such as a YankeePrepper, SouthernPrepper1, dsarti1 totally agree with you. You can't eat gold and silver.

However, I noticed that most preppers neglect the most important aspect of prepping and that is health. Very few of them are concerned about diet. Do not exercise at a professional gym, do not take nutritional supplements, do not spend time in prayer. First comes personal health and prayer, and then comes food, water, shelter, protection, etc.

Most preppers fail to prep for tornados by building storm shelters. Most preppers fail to prep for fires by building a metal roof over their home or bug out cabin. Most preppers in the woods fail to protect from brush fires like the ones in Texas by clearing the land of dry grass and brush. Most preppers do not have a smoke alarm in every room or a fire extinguisher in every room. Most preppers do not prep for home invasions by having burglar bars around their house and a few doberman pinchers.

You see, a year's supply of food does you no good if it is destroyed in a brush fire like you see in Texas. Having a lot of guns and ammo does you no good unless you can store some of it in a large storm cellar when the tornados come like they did in Alabama. Having a bugout cabin does you no good if it is flooded by rising river waters like we see happening now.

You see, most preppers put the cart before the horse. They do not know how to prioritize.

I have to disagree with a couple of points here, Kellene.

"When one invests in gold/silver one is assuming that someone, somewhere, at some point in the future will successfully bring about a financial rebound in which a person can exchange their metal assets for currency at a gain in profit."

Not necessarily. I expect to use some PHYSICAL gold or silver as a medium of exchange for things I need and do not have, with others who do not need or want any of the things I have to trade with. There will be some, just as you say: "At which point the gold will only be worth whatever the seller of goods says it is..." EXACTLY. Precious metals (PMs) have the stature they have now because they have been valued by PEOPLE in most societies for thousands of years. That won't go away.

Others hold PMs as a means of wealth preservation during and through the crash. Exchanging increasingly worthless fiat money for PMs allows us to escape the destruction of the wealth we hold. Granted, you can't eat gold, but reasonable scenarios allow for the survival of society -- and trade. That's where "gold and silver take up less space than wheat..." is very handy. I'm trying to prep to thrive in the wide variety of possible outcomes.

"The time to actually invest in gold and silver was several years ago..."

I'd love to have bought gold at $200, but I didn't. However, if you believe the dollar will only continue to crash, gold at $1500 will look pretty good when it's $5,000/ounce and no one will take those ugly slips of paper...

"Is your utility company set up to accept gold as payment right now from you? Do you think they will actually have time or the inclination to do so when the fit hits the shan?"

They will if people have it, and they want to be paid. I think better questions are "Will they still be producing power? Will I still be bothering to pay them, or any other outfit I'm paying now?" If I still have a mortgage, I'll pay that, and my property tax. Anyone else can just go whistle.

All that said, I agree with you that Financial Preparedness is pretty far down the list, and other systems of exchange, like swapping and Time Banking (http://www.timebanks.org) will be more common and useful than PMs.

I think I'm going to leave Scott's comment(below) as a response to yours Featherjack, other than to say that I wrote this article specifically to educate those who feel as you do. That obviously doesn't mean it would work, but I'll be happy if it only clarifies one persons thinking on the matter.

Thanks so much for the article..I finally got my husband to take half of the money out of his 401K he dosen't have much in it but his company matches so they only let you take half on a loan,,I made hime listen to your radio show and he went to work and took out a loan(only way you can do it unless you quit)the payments are minimal and then if nothing..lol..happens he will have the money back in 18 months..but it sure makes me feel better and I think it does him too..your a a wise woman..I wish I was as knowlegable as you are but I am learning soo much from you..bless you and keep up the good works..you are adding many stars in your heavenly crown.

As the price of gold continues to climb, many people feel that it is a good investment. The problem with this belief is that gold does not increase in value over ANY amount of time. An ounce of gold 2000 years ago bought approximately the same amount and quality of goods that it buys today. We see its value changing only because in our minds we continue to believe that the dollar, which we measure its value against, continues to hold a particular or specific value, and that view of the dollar is wholly inaccurate. (Side note: if you do decide to invest in gold or any other precious metal, get actual physical control of it. Don't buy gold certificates or stocks - they're just another form of fiat paper waiting to become worthless in your hands - and don't leave your investment in the hands of anyone else. If you do, you don't have it.)

So, the question then is: Why not hold gold to use as money or exchange in the future, as featherjack said.

The problem with this is that, as Kellene said, you are counting on someone else to have what you want to trade gold (or any other precious metal) for. If you believe you'll want what no one else wants, scrap metal comes to mind, then this might work out for you, but if you believe you'll want roughly the same items as everyone else wants, such as medical items or attention, sanitation items or facilities, clothing and shelter, fuel, water, food, communications gear, etc, then those who have it will value your gold less than they value other items of trade and barter, such as manual labor, etc.

It is a dangerous game to hope and trust that someone else will be willing to trade or barter things that can and need to be consumed, for something that is not consumable. I'm not saying that gold will not have a place in the future, but I simply don't believe that it will continue to hold value for people the way it seems to today, at least not for a while once things begin to rock and roll.

So, all this being the case, why would I spend money on something that people will value less in the future because they can't eat it, when I could spend the same number of dollars to buy something that will only increase in value, real or perceived? Because, unless you believe that beans, bullets, and band-aids are going to go down in value, you've got a situation in which the value of gold falls during the same period of time in which (compared to) consumables go up in value for people because they failed to prepare.

It is really a numbers game: going with gold indicates a belief that you will be able to trade it with others for the goods that you need or want, not realizing that those who are prepared are the exception, not the rule, and thus will be trading with those who are not prepared for items that they can either turn around in trade again or that they can consume. In general, those who are prepared will continue to survive and flourish due to trade, not become investors and collectors. You might find one or two that venture outside that box, but are you willing to bet your future on those odds? I'm not, which is why I prepare for and with those items that have intrinsic value to the human body, not just as a shiny object to the human mind.

Numerous examples throughout history bear this out. Not from a religious standpoint, but from a practical example, the Israelites could not have cared less about all of the gold the Egyptians sent them off with when they needed a defense, a water source, or food. All that gold to trade, but no one to trade it with; what a shame.

Sally, my heart goes out to you, and although I don't presume to advise you, here are a few thoughts:
I too, have a disability, and live in a house with a lot of stairs. How I'd love to have everything on one floor! On the other hand, dealing with these steps everyday has made my body strong.
No matter what the Lord leads you and your husband to do, why not pay off that mortgage now? You have the money, and it will be YOURS-not the bank's. No matter what, that's a good thing.
If you feel strongly (as I do) that Kellene is correct about the soon-to- be financial collapse, perhaps this is the Holy Spirit's guidance, and although, yes, it IS scary we must remember God's Word: "For God did not give us a spirit of timidity, but a spirit of power, of love and of self-discipline." (2 Timothy!:7)
Once your home is paid off, is there any possibility of adding on to the first floor?
If lots are hard to find, well, maybe that's the Lord protecting you from a terrible mistake.

Kellene,
Sometime ago I wrote to tell you about our preps. Enough food, water (Berkey),grains, beans,oil,etc,etc, to feed my wife and myself for at least 10 years and I have added more since then as I am blessed with ample financial resources. I can now feed my entire family if necessary for at least 5 years and we are in the process of adding ample supplies of baking chocolate, cocoa, and other specialty items that will prevent appetite boredom. I also have ample supplies of PM's of the protective type.

I have placed substantial money in silver over time and my plan is to buy additional land post collapse as things finally settle down. At my age it will be for my children and grandchildren.

Your article has caused my to change my thinking and I no longer will buy precious metals but continue to purchase things that we will need. We have ample clothes, shoes, boots, etc. to go for a number of years and we no longer donate to Goodwill or other charity when we get tired of our clothing. Our new plan is to put all clothes we no longer wear into 55 gal. metal drums and save them to share or to alter for the grandchildren as they get older.

It is painful to talk to some family members and find that they think I am a nut for being concerned. We have told no one of our preps and plan to keep it that way. Rather than to continue to store more in silver/gold we will continue to acquire more usuable food goods to share with those who do not know enough to put necessary things back. They will need all the help they can get. This will be done through the church so that God gets the credit and we don't disclose our stores of needed items.

Keep up the good work and for your readers, tell no one of your preps in detail for your own safety.

Sandman

Thanks, Sandman, and the best of luck to you. Know you've got a friend here in Utah County.

Gold and silver will always have value, even in the Bible, it says that "Gold is good". I fully trust that. I will continue to buy it and keep it on hand.

However,...I also have been stocking up on food, water, supplies, and I am constantly thinking of contingency plans for any event. This has been my way of thinking for over 6 years. My wife and I do not go and enjoy a 100 dollar night out in town for mere amusement, and have not for some time. Every thing we do is for reason or a purpose. I live in a rural/country setting and I am also set up to defend it in a worst case scenario. I have found that faith in God helps me, my family, and gives me positive thinking every day since nobody will ever win thinking they will lose.

I agree gold will always have value. However, I do not believe it has the value at present that the "precepts of men" are placing upon it, thus it is a risky investment.

"A permanent decline is what you will see, not a economic collapse. Think about it for a second. Let’s go on over to any of a dozen of craphole African nations. Like Zimbabwe. They have out of control hyper inflation. The kind where they cancel last months currency, drop a dozen zeros, start over until at the end of the new month the darn thing is toilet paper again.

That is real inflation, not the pretend kind we have here. And yet, folks over there are still getting along. They aren’t dying in the street of famine.

I wouldn’t want to be there, worried that in a mere fifty three minutes my One Gabizillion Zimbo-Bucks will only be worth a half gabizillion bucks, but there is a somewhat normal life going on there despite that".

Unfortunately, Jim, we're dealing with historically unprecedented circumstances that are not present in Third World nations.

Also, let's not mistake the need for sanity (i.e. making the best of what we've got) as an endorsement of what is taking place in these other nations. It's also a bit naive of any of us to assume that since they are making it, we will too. Um, one key missing piece of information there. They are making it because WE are helping them significantly. When the U.S. falls, the World Bank falls. That means there will be no more nursemaid for all of these other nations as well as none for us.

I don't believe I can bite off on the phrase "pretend inflation". Just because it is contrived and manipulated, doesn't mean that it's simply a figment of our imagination. The results are very real. We're not all going to wake up one day and see the money we've lost as a result of these manipulations suddenly deposited back into our bank accounts.

One of the things we did is after we got a year's supply for 2 people, a berkey filter, and some other basics, was buy some silver (this was about 3 years ago, when spot was $14). We did this with some of our savings, mainly because my husband is uncomfortable having less than a certain amount of money in savings, so he didn't want to put it all into tangibles in case of emergency. We left enough in cash to meet 2 months of expenses, minus the mortgage and the things that are automatically withdrawn, plus an emergency fund. Since we don't really have enough savings to do real investing, this way has kept our purchasing power from diminishing. And if we ever have a personal emergency, we can convert it back fairly quickly (I keep track on ksl.com of how easy it is to unload), and if there is a large emergency, it won't matter anyway, and we have enough cash to make last minute emergency purchases, which we are working to make sure won't be necessary. We're actually almost there, as far as the essentials go, and I'm going to sell some of the silver soon to take care of some more preps as soon I decide what I need to do.
Since we bought the silver long enough ago, and after we got our food, I think this has been a good solution for us, especially since we didn't have the room at the time for everything we needed. But I agree that buying silver before buying food is not wise, especially right now with the price of food and silver going up.

I agree that the time to buy gold and silver was several years ago, if you wanted to buy. My brother bought a whole bunch right after high school and he's now selling it off so he can invest in preparedness items like food storage, land, guns, etc.

Im so glad you wrote about this. I was worried because I dont own any gold or silver, but I do have a years supply of food ready just in case. The only debt I have is my car payment. I was feeling pretty good until this whole gold craze thing starting happening! I have always felt like you do, that its better to have food and supplies on hand and I really dont want to have to go and find someone that has toilet paper and hope he will take silver for it!( I think toilet paper is in the priceless category!) After reading your post I feel much better, thank you! Its always nice to find someone who thinks like you do!

Ditto what FeatherJack said!

No need to polarize.
Why do we get off in an "either or" scenario? (churches are constantly fighting about which is better: fruit or gifts?)
IT IS BOTH/AND, not either/or!!!!
I completely agree with FeatherJack. But I also am prepping food like a crazy woman! : )

Always love to read your articles! Keep 'em coming!

It's impossible to ride both horses, Dear. This article is not which warns against the investments which have already been made in gold and silver nor is it intended to deride the value of such metals. This is about investing in them NOW with the intent to be ready for what's coming.

Just keep what you're doing in alignment with the Ten Principles, and even if mistakes are made in the lower priority principles, it will bring with it lesser impacts. :-)

I've always figured you can't eat or drink gold or silver so it can't be of any real worth!

I'm prepper and I'm a silver bug. I think of silver as insurance for wealth. That being said I did finally convince a major Gold Bug to start stocking up on the basics of food water and security. He had lots of PM, quite bit of cash ready to get on a plane and fly to a new country and avoid all the unpleasntness. Said he would just use his gold to buy what he needed. So I asked what if no one is willing to sell? Or if nothing is availible to buy ala Japan and Alabama?
He's stocking up now. ;)

Jamie-I wouldn't even know where or how to buy silver.

Karen if interested you can stop by my site and shoot me a comment. On my "You can't eat gold" post. LOL I agree with Kellene on getting your basic TOP 10 first at least 12 months of food, 30 days of water(Filters to make more safe) and Security. I can guarantee you will need all of those items no matter what happens next. Even if nothing happens, you will have a great camping/Tailgating setup.
Silver spot price is bouncing between $40-50 per oz. Gold 1535.00 and 1575.00 the last couple of weeks. For the price of silver that's 2 50 lb. bags of rice, almost 4 50 lb. bags of of wheat, 1.5 bags of sugar, around 10 gallons of fuel for a generator. I don't where you are at for prepping, but that just food/fuel prices. Not counting all the other areas of prep. Use Kellene list of priorities it really works. I'm speaking as someone that did it all out of order. I started a while ago and had time to correct my mistakes and learn.
One of the best ideas is if someone gave the money for an oz. of silver or an oz. of gold what would you spend it on? Would you buy an oz. of PM or something else?
Also I really sucked at keeping cash on hand. I always spent it. It was to easy $20.00 here and $10.00 there and in a few days my "cash fund" was gone. Silver made it easier for me to save. Cause I had to sell it before I could get anything and I hated selling it. I'm getting better with cash now.
The first thing I would ask myself before buying silver or gold is "What do expect in return?" I'm sure if you buy a couple of acres in the country you have an expectation of value. Or having stored food for a year or growing a garden. It's about value not money and they are different.

Jamie, I'm looking forward to reading through your site!! Thanks so much.

I guess it all comes down to if one believes that elitists are the ones running things in this world or not? Obama is nobody in comparison to this group of world "managers". The elitist's currency is STRICTLY silver and gold, and as I said the bible says what it does about gold (it is good), and it also makes reference to a new world order,...which will be directed by the elitists. Is America's Gold really at Fort Knox? Is it at the Federal Reserve? Nobody even knows, and they would not allow our very own Congressmen in to see it either!

I hope I am wrong though?

"The time will come that gold will hold no comparison in value to a bushel of wheat." - Brigham Young, June 5, 1853, Journal of Discourses 1:250.

Share your thoughts on the matter

Disclaimer

Please note that the name you use in the "Name" field above will be the name displayed on your comment.