Most survival and preparedness sites suggest stockpiling lots of survival gold and SHTF silver. We don’t agree with this approach (which we explain in detail later).
But this doesn’t mean you have to miss out on the great benefits of owning gold and silver.
There’s a smarter way to get the gold and silver’s benefits without the barter economy risks.
Gold and silver have represented wealth since the beginning of recorded history.
These precious metals are used in jewelry, cups, chalices, flatware, eating utensils and tools.
Gold and silver are soft metals; they are both shiny and pliable. They are excellent conductors of electricity and do not oxidize, tarnish or corrode.
Gold and silver have been around for a long, long time yet never spoil or deteriorate. And in modern times, gold’s put into spacecraft as plating for electrical connections in the harshest environment known to Man.
However, gold and silver supplies are limited; it’s challenging to find either in bulk and hard to extract them. So they are “rare metals”.
And it’s due to gold and silver’s rarity and longevity that ancient empires made coins with these metals. And up until last century, gold even backed the value of the US dollar.
Historically speaking gold and silver have always had value. But the question is:
Will Precious Metals Always Have Value? Should You Invest In Them?
Historically speaking, the answer to the first question should be a no-brainer. Gold and silver have always had value throughout human history.
Gold and silver have had value during the rise and fall of empires. They’ve held value in the ebb and flow of:
- World wars
- Global pandemics
- Civil wars
- Economic collapses
Gold was valuable back when Moses led the Chosen People out of Egypt.
Is It Safe To Assume Gold and Silver Hold Their Value In The Future?
One key element of gold and silver throughout history is their ability to hold value regardless of the society. All historical societies who were aware of gold and silver valued them.
- Ancient Rome
- Nazi Germany
- Napoleonic France
- Edwardian England
Humans have always grouped into large Societies. Even after every Great War, purge or plague – Human Society continued – not always in the same form, but continued nevertheless…
In some cases, these societies evolved into empires, dictatorships, oligarchies, monarchies or communist collectives.
In other cases, history led to republics and governments for the people by the people.
In all cases, history moves forward, society evolves, and the basis of society was laws. Laws are the glue that holds a successful Society together. Without laws, you get chaos and anarchy.
So every successful society has a dedicated group whose sole purpose is to enforce and uphold the laws. And one essential building block of any lawful society is enforcement of property rights.
And by property rights, we’re not talking only about land – we’re also talking about durable goods, money, and hard assets (including survival gold and shtf silver).
So again, in all societies, property is protected by the law and enforced in some way. However, law enforcement can come in many shapes and sizes. The Chicago police, the French Gendarmes, the Nazi Gestapo or the East German Stasi are all different forms of law enforcement
In some cases, society’s private citizen’s property is protected. In others, the law states all property is ownership of the State (the collective).
The bottom line is property, capital, currency, gold, and silver have retained value in organized Societies.
But the question now becomes, will as a citizen of society be allowed to keep that value in troubled times?
Will The Value Be Protected For The Private Citizen?
Many countries, namely communist nations, make it illegal for its citizen to own precious metals. Since gold and silver have value, these governments want it.
They want to control their value and put it in the Federal coffers, instead of in someone’s sock drawer or home safe.
These governments view individual stockpiled wealth in precious metals, as a “tying up” the nation’s assets.
They believe this capital (or gold) is for the betterment of the nation as a whole.
They believe hoarding gold or silver undermines the collective good.
But That Couldn’t Happen In The United States…
We live in the United States founded in laws, capitalism and individuals rights to pursue, obtain, and keep property. That’s what the American Dream and the American experience is all about, right?
Did you know in the 1930s, during the Great Depression, the United States made it unlawful to own gold? It’s a fact. See for yourself – Executive Order 6102.
If you owned physical gold back then, you were forced by law to turn it over to your local bank or face prison time. Gold was deemed too important to National interest, too valuable to be left in the hands of the people.
Of course back then the US was on the Gold Standard, our paper money was backed by physical gold. The Government needed that gold to ensure its paper money had value in the world.
This is not the case anymore. The dollar is no longer backed by gold.
Still, does the Government have the power to outlaw physical gold ownership? Yes, it does. They did it before and could do it again.
Our current Government will likely compensate you with paper money in exchange for it. But it’s hard to say whether the paper money given will worth much.
So gold and silver will continue to have value but you may or may not get to keep the value. In times of crisis, your government will decide – and no government can be trusted.
What If We Found Ourselves In A Lawless World?
To be fair, those collapses don’t usually last long. When one empire falls, another rises out of the ashes.
When the Roman Empire fell it was replaced by their conquerors. These cycles have happened again and again throughout history.
When Imperial Japan fell, the Americans sailed into Tokyo Bay to establish law and order.
The same thing occurred in Nazi Germany. When Czarist Russia fell, the Bolsheviks were there to take over.
It’s the continuing saga of human history. Human tribalism. Human nature.
Someone always takes over and begins imposing their will on the masses. Powerful groups rise up out of the ashes.
Persuasive and charismatic individuals appear and soon you have a new George Washington or a new Joseph Stalin on the scene.
In either case, gold and silver will still be worth something. George might let you keep your precious metals, but Uncle Joe won’t.
Let’s Assume You Get To Keep It
Let’s say during an interim period of civil chaos you have a stockpile of gold and silver coins. So when paper money is no longer accepted, you decide to whip out the shiny stuff to trade for food and water.
That’s why you bought it, to begin with, right? To someday spend it. If no one trusts paper dollars, people will trade gold and silver, right? Some will; many won’t.
In such dark days, a good Smith and Wesson Model 29 will be “worth its weight in gold.” An egg-laying chicken will be worth more than a single gold coin.
Because a starving man can’t feed his family gold bars but a few egg-laying chickens can.
In such a scenario, as time goes on, the value of the gold coin goes lower as the value of a loaf of bread goes higher.
Now don’t get me wrong, in a barter economy, gold and silver will have a place. But it may take the right person to seal the deal with gold. Do not assume it will be universally accepted.
And realize when you whip out your bag of gold, you just painted a massive target on your back. You just highlighted yourself as “the guy who has gold“.
If you bring gold or silver to the marketplace, you’d better bring friends, along. Plus, all their friends – and their AK-47s.
And they better follow you home and stand guard outside your house.
Now, here’s the rub about survival gold and shtf silver in a lawless, post-apocalyptic world.
Many folks in a barter economy won’t trade with gold – it’ll be too risky.
Survival Gold and SHTF Silver Are Not Survival Supplies
You can’t eat it; you can’t drink it, you can’t shoot it.
But the criminals of this lawless world just sang the Hallelujah Chorus.
You see these lawless bastards are not just criminals – many also have an insight others might not have.
The ruthless ones will have a long-term criminal vision. They understand that civil society will eventually return. John Q Law always returns at some point. Some badass always rises up and restores law and order.
They know the value of gold will skyrocket again in the future. It’s a guarantee.
And the amount of gold they can get their hands on now will establish their station in future life.
So Let’s Go Back To A Stable Scenario
OK, let’s set aside the end-of-the-world, post-apocalyptic vision for a moment. Instead, let’s assume civil human society putters along at our normal, ups and downs. Presidents come; Presidents go.
The market rises and falls. Wars are fought – some lost; some won.
In general, let’s assume the world as we know it today continues to chug along. Are survival gold and shtf silver good investments in this scenario?
Gold and silver are both stable investments if your goal is to protect your wealth. Gold acts as a hedge against inflation and financial collapse.
Gold is an excellent hedge against inflation – and inflation can go nuts from time to time. When prices rise, the price of gold has historically matched this price rise.
For example, in 1974 a nice quality suit cost around $400, or roughly the value of one ounce of gold at the time. Today that quality suit sells for around $1100, or roughly the value of one ounce of gold nowadays.
From a historical perspective, the suit has not changed, nor has the gold. The only thing that’s changed is the value of the paper money we exchange.
Gold tends to hold its value through inflationary periods.
But inflation’s not the main reason you prepare. You are not stockpiling food and water for the day when inflation hits 19%. That’s like preparing in 1979.
What About In A Financial Collapse? A Nasty Recession Or Even A Depression?
People tend to buy gold and silver when they’re fearful. They’d rather own something physical instead of paper (or electronic) when markets are falling fast.
So the demand for gold and silver shoots up in times of market collapses.
Making gold and silver good hedges against collapses as well.
Not only does gold and silver hold their value during inflationary periods, and collapses, it also diversifies a portfolio.
As the adage goes “never put all your eggs in one basket.” You should put those eggs into several baskets, one of them being a gold basket and another a silver one.
Stocks, bonds, real estate, gold, silver, and bank savings accounts, etc. – these are the most common financial instruments we have at our disposal.
Most people have some of each basket to help mitigate financial risks.
The question any good prepper should ask is this: will gold always have value? And even more importantly…
Should You Invest In It?
Over historical periods of time, gold doesn’t deliver high returns on investment. But again, it holds its value.
Make no mistake Bill Gates, Warren Buffet and Elon Musk did not become wealthy buying and selling gold. Gold is a commodity and is a part of a commodity exchange.
The price of gold at any one moment is the intersection between the supply and demand curves – the market clearing price
Now, unlike wheat, pork bellies, corn and other commodities, gold’s supply curve does not depend on any weather or climate related factors.
Most commodities, such as grains, oil, and natural gas, have a demand curve based on consumption. You can’t consume gold, you buy it and mostly hoard it.
The demand for gold depends on how many people and governments think buying more gold is a good hedge against an uncertain future.
Yes, You Should Buy Precious Metals (but not in the way you thought)
You should consider adding gold and silver to protect your current assets. They will help maintain your portfolio’s value during the downs of a volatile market.
Survival gold or shtf silver can help to diversify your asset base. It may not perform as well as stocks in a bull market, but this hard asset should improve your risk-adjusted returns over time.
Gold holds its value better than most assets in inflationary periods. It also becomes a high demand commodity in times of collapse and fear.
This is the main reason to buy and hold survival gold or shtf silver – you’re protecting your wealth for an unpredictable “normal times” future.
However, gold and silver are not as useful as many suggest in a total societal collapse. Because if we end up in a barter economy, gold and silver may become more of a liability than an asset.
If you think having survival gold will be your saving grace in a post-apocalyptic barter economy – think again…
A Smith & Wesson firearm will have far more value in a post-apocalyptic economy.
It will provide me with personal and family security – it can get me your survival gold as well. That’s why you should add physical survival gold and shtf silver to your investment portfolios but not hoard it at home.
You want the asset protection for normal times without the SHTF economy liability. You want the non-apocalyptic benefits without the post-apocalyptic headaches.
So the only question left is:
How Do You Go About Adding Gold And Silver To Your Investments?
This one’s easy for me to answer – I recommend you check out American Bullion.
Gold is in my portfolio and American Bullion is the only gold company I trust. They have an A+ rating with the better business bureau, have second to none customer service.
Plus, I’m not the only one who endorses American Bullion.
But don’t forget about Silver, many believe now is a tremendous opportunity to add silver to your investment portfolios.
Be sure to read their important risk information to make sure buying gold and silver is right for you.
Remember: Prepare, adapt, and overcome,
“Just In Case” Jack
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