Doomsday Prepper's Guide to Precious Metals

While some analysts advise consumers to trade in all their assets for gold and silver, others advocate buying none of these commodities. Considering the harsh economic times and the huge market spikes of today, it would be unwise to adhere to the latter opinion.

Despite the fact that putting some of your savings in gold and silver is a smart choice, not all precious metals are worth the trouble. As a rule of thumb, you should always stick to physical metals, meaning:

  • Coins

  • Ingots

  • Bars

  • Rounds

Which precious metal provides the best protection?

  1. Gold

Due to the price drop at the beginning of the year, many preppers have over-evaluated gold and starting selling. If you have gold, then you should keep it. Only sell gold when you reach retirement; alternatively, you can hand it to your grandchildren.

Without trying to undermine gold's investment power, take note that in case of an economic collapse it will lose its value. In this scenario, barter will be king and few people will actually accept gold or other precious metals in trade. Don't forget, gold cannot be eaten and cannot be used as a tool to grow crops or raise animals. Then again, when the situation stabilizes, there is a chance that a certain type of currency will be introduced; that currency could be gold.

  1. Silver

Although it is underappreciated compared to gold, silver has a better chance of being included in trade. Due to its form and shape, silver in the form of pre-65 dimes or quarters is easy to handle and is divisible; hence, it could be considered as currency after an economic collapse. Think of it this way: if someone asks an ounce of silver for a basket of bread, but you only want a loaf, wouldn't it be easier to pay the 2 dimes instead of cutting an ingot or trusting that person with a credit?

  1. Other metals

Investing in other precious metals than gold or silver is not really necessary for a prepper. The only time buying platinum, palladium or rhodium makes sense is when you're purchasing it as a collapse barter trade. Moreover, because the aforementioned metals are relatively new commodities, few people actually understand their worth and hence, can speculate correctly to make a profit.

HOW MUCH OF YOUR SAVINGS SHOULD YOU HOLD IN THE FORM OF PRECIOUS METALS?

Unfortunately, there are multiple answers to this question and none of them alone are correct. There isn’t and there cannot be a single solution for all investors, especially since there are so many variables directly correlated to personal circumstances. Granted, financial analysts advise entrepreneurs to allocate between 10% and 20% to precious metals, the problem with these numbers is that they don't account for consumers who don’t have the time to fully investigate every financial product marketed to them.

Bullion Exchanges can help you

Bullion Exchanges is here to lend you a hand with your portfolio. Our experienced team will analyze and account for all the individual factors in your case and help you reach the best decision. Contact us and start building your safe haven today.

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