Precious Metals (PM)

There is some controversy in the Survival/prepping community on PMs if you should have some or ignore them.
They tend to break down into the “You can’t eat gold.” and the “Barter/Real Money”  schools of thought.
I am in both camps because I think you want to as be flexible possible for any situation. That being said I think the first items to concentrate on is 1 year of the food and 3 months of water. Shelter/security, first aid, Sanitation and getting out of debt. A mortgage you may want keep making the regular payments, but all other debt must be paid off. Once you get everything else taken care of then look at the mortgage on payoff, sell or keep.
Now you have all of the basics covered for bugging in. Do you have a bugout vehicle and place to hold up for 3 weeks. California has had several evacuation orders because of flooding. Could you live 3 weeks away from home given 12 hours notice? It could be in a tent, an RV or with friends and family. But have a place to go and the stuff you need when you get there!
As you can see I think PMs are one of the last things to get and only when you have all the stuff you know you will need every day and a bit more. You can trade that extra sleeping bag for silver/gold if needed. But if you don’t have the basics, all the gold in the world will not entice you to give up your sleeping bag. ( I hope!) LOL
After all the reasons I have given not to get PMs.  I do think PMs do have a place in prepping.
I look at PMs as a store of value, a hedge against inflation/hyper-inflation. The worse the economy does usually the better PM’s accrue value. It’s portable, most folks think it has a value all it’s own, and you don’t have to pay taxes on it to keep it. (So Far…)
Now this is about protecting yourself and is not investment advice. I think I’m right on PMs as insurance but I’m not an trader, investment guru or money manager. My info is based on my study of history, economics and my own gut instincts. Do your own research and find what level of risk you are comfortable with for yourself and family. PMs carry risk, I just think that risk is lower compared to most things including stuffing dollars in your mattress. Find 3 coin dealers in your area you trust, Buy only from trusted mints, mines . Don’t pay extra for collectibles, focus on purity and melt weight.
If you are interested in learning more check out my blog roll. Both the Watchtower and zerohedge have good info. Both are very bullish on metals, I think with good reason but it does color their commentary.

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One Response to Precious Metals (PM)

  1. Rhonda says:

    Good post…lots of info to chew on.

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