A person might think I have worn out the buttons on my calculator as many times as I have been punching numbers the last few days. Getting my food drums started has been my major focus but two items bounced up on my radar. Gas because of rising cost $3.50 a gallon and Silver because it went on sale for under $30.00 per oz. This kind of price volatility makes planning my prepping budget even a couple weeks out much more difficult. I’m going to add more gas rather than the silver at least short term because silver may come down a bit more in price but gas is almost guaranteed to keep rising in cost. Another thing about silver is that it is only good if you can trade it for what you need or want and as a store of value. If you don’t have all of your basic needs covered it’s best to forget about PM’s for a bit and put those little FRNs to use on something you know you will use in the future. Rather than hope some item will become more valuable in the future as barter or even as money.
I think it’s a good idea to think about how quickly rising costs will effect your budget in the short term. Even a 25 cent jump in the cost of a gallon gas will affect my budget a lot more than a $3.00 per oz. jump in the price of silver because I use gas daily and silver is something I use as a store of value. I’m not saying don’t buy PMs if you are in good shape for all your basic needs and it is a good buy right now. But if you are buying hoping that people will trade food, water, ammo and fuel just because you have a shiny coin I think you are making a big mistake. Plus 100 gallons of gas is about the same cost as 10 oz. of silver. That amount of gas could last over six months fueling my car if I’m frugal, allow me over 600 miles range in my RV if I needed to bug out or run my generator for a couple of months at least. While the 10 oz. bar gives me a very pretty paperweight unless someone wants to trade it for something of value. Gas is something I know I will need, silver is speculation!
Think about how willing you would be to trade some of your basic food items and exactly how much someone would have to offer you to to sell ten pounds each of rice, beans and grain. Add a pound of sugar and salt and say a 1/2 pound of olive oil. That is enough food to feed a family of 4 for about 2-3 weeks. Think about value not cost, especially as you don’t know when or if you might be able to replace it. Today you can buy all those items for about $50.00 or less at the mega-mart but if all those stores are empty you won’t be able to replace most of those items unless you can grow and process them yourself.
You can’t eat silver, gold, stocks, bonds, 401k/IRAs or paper money. You can use many of those items to help keep pace with whatever happens to the economy but they won’t feed you or keep you warm at night. But a $12.00 shovel will dig a hole for a root cellar, an outhouse and start digging up the yard for a garden. A good 18 inch bow saw with a few extra blades will cost about $20.00 or less and I know I was surprised how quickly it would go through wood that was up to 4-6 inches thick even with my handicap. Keep value and not price always in mind when you plan your budget and goals.