What’s a good amount to have?

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  • mikefraz

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    I’m finally at the stage where I’d like to start buying some silver and other metals in the near future for an alternate form of currency as well as just diversifying my investment portfolio. I’m happy with my contributions to my 401k. What is a good amount value wise to have on hand? Silver is pretty cheap right now, but do I need $1,000 worth? Is there a magic baseline that is generally accepted as have atleast X amount of silver, Y amount of gold, and Z amount of copper(or platinum or whatever)? I understand that your baseline greatly depends on your available capital, but I’m hoping you guys can point me in the right direction.
     

    Leadeye

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    Stuff like that will be what you will need to deal on the black market to get things you need, but like Act posted, it's better to already have those things. Look at the precious metals as an insurance plan for things you forgot, or to deal with unforeseen problems.

    I'll trade my ability to make booze and raise tobacco to cover those squares, there's always going to be a need for those.
     

    DCR

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    I've thought of this as well, but am not certain it's going to be spendable currency. Wouldn't it matter what the scenario was? If not widespread, couldn't you just drive to where $$ would be perfectly acceptable? Would it be better to just protect your portfolio with gold rather than buying coins for currency? Wife and I have discussed and we're pretty certain in some scenarios a couple shotguns are what we're most in need of. In other scenarios all we'd need is enough gas to get out of state. Planning for all contingencies is a *****.

    A 1oz gold coin is about $1500, but a 1oz silver coin is only $20, making the silver a better choice for most purchases. Keep some cash around too.
     

    Lex Concord

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    While, speaking generally, a certain percentage of one's portfolio in PMs of some form is not a bad recommendation, commodity ETFs can't be considered "on hand", as the OP indicated. It seems to me he's thinking direct exchange medium at some level of SHTF.

    As the possibilities are endless (just pick up a few prepper novels to see just how wild the imagination can run with such a thread), the only advice that seems prudent to me is to imagine what scenario requiring PMs seems plausible and what type, form, and overall value would you feel comfortable with having in such a situation and target accumulation to that goal. Again, the possibilities are endless, but try to maintain a balance with enjoying life right now.

    Regardless of the overall amount or value, one thing to consider is the acceptability of your PMs as "currency" in whatever situation you envision. That is to say, how likely are average people (say, folks not capable of performing an acid test) to accept your items at face value? The more well known minted items such as American Eagles, Maple Leafs, or even "junk silver" (U.S. dimes, quarters, halves, and dollar coins from 1964 or before) are fairly well known, have broad recognition, and will likely engender trust more easily in such a situation than a commemorative round from a relatively unknown source.

    If you're not already familiar, I would suggest looking around at APMEX for ideas on what best fits the scenario(s) you might have in mind, not necessarily due to prices (which follow spot + some amount), but because they have an incredibly wide array of options from kilo gold bars to .5 gram marked gold beads intended for threading onto a necklace (concealed carry?) to junk silver by the bag, loose jewelry silver, and of course a plethora of rounds in gold, silver, platinum, and palladium.
     

    dwh79

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    I travel a lot for work and I have thought about this as well. Looking at having a certain amount of silver with me so that I could use it to help me get home if shtf while I am away. Tough thing to figure out it is all subjective for certain.
     

    spencer rifle

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    Junk silver is worthy of consideration. It has actual monetary value, plus PM value, is widely recognized as LC said, can be obtained locally. Just go in armed with spot prices and your percentage knowledge.

    Sterling silverware is also good - again, widely recognized, has PM value, and is healthier to eat off of (especially in a SHTF event when cleanliness tends to fall off) due to oligodynamic effect.
     

    Expat

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    So if you go into the local shop that traffics in silver coins and such, how much should you be paying? What the spot price is listed at that day? Or do they get a mark up? Or a discount?
     

    spencer rifle

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    They get a markup (more or less depending on the shop and how up-to-date their spot price is), but you have to figure in that the coins are only 90% silver and adjust accordingly. You could try to time the spot price if you have very current information and they only update once per day. But the market giveth and the market taketh away.
     

    Lex Concord

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    Good advice from spencer rifle. One more reason I like APMEX... they have up to date spot prices listed on their site, and are clear about their markups (they generally advertise as "spot + x"), which will give you some idea.
     

    luger fan

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    Gold has held value since the time of the Egyptians.

    Yes you do need food and ammo but that's a small part of it. We will not go from todays society to Walking Dead overnight. Also if you need cash you can sell bullion to a coin shop for cash, hard to carry in 3 cases of Mountain House and 4 bricks of .22lr.

    Modern Coin Mart is a pretty square dealer also just check e-bay prices for gold and silver prices. For silver you are better off buying the 10 ounce bars, about $170. Gold is running $1347 per ounce , spot price. For smaller amounts of gold I buy the 20 Franc Swiss and French coins. Sty away from the Tunisian, Belgian, or Italian, actually with Italian it's 20 Lira nor Francs.

    I am NOT a dealer but have been collecting since the 1980's. Any questions fell free to send a p.m. Be glad to help.
     
    Last edited:

    dusty88

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    My view: first get debt free, have supplies of food, water, ammo, other essentials.

    Gold and silver should make up 5-20% of your investable net worth (investable meaning not counting things you need to survive like your home). 5% is probably a good number for the long term. 20% makes mores sense right now with what has been happening with fiat printing, high global debt etc.

    There is quite a markup on coins but AFAIK it's still the most practical way to buy silver. You can buy a bit each month so you are kind of cost averaging into it.

    IMO, silver is the currency to store at home or locally that you might use in the case of some local or regional emergency like grid failure. If you get into larger amounts then silver becomes a big volume and it's time to think about gold and where you would store it.
     

    KittySlayer

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    Cash: Maybe keep a couple of months worth. Can be used in a local/regional event. Family emergency/crisis. Job loss or disability. Not subject to the whims or hours of the banks.

    Silver: If the SHTF and paper money is no longer accepted silver may serve you well initially. First few weeks there will be people greedy enough to "make money" off of the crisis and you may get things you want/need/find helpful in exchange for some shiny metal. Silver is a small enough increment to allow you to negotiate and get close to paying a fair price.

    Gold: Think of it more as a means to transport value (weight to value ratio easy to carry). Also a means to hold wealth until things return to some semblance of normal. Remember a gold coin can always be halved to get a smaller increment.

    Do not think of any of these as investments like your 401(k) but rather tools to use in an emergency. Cash can be decimated by inflation, the simple creep over time or sudden gouging by merchants in a crisis. Precious metals have weird market fluctuations from time to time that sometimes defy logic.

    You can read post apocalyptic novels and decide which ones to believe. Look to history and what you would have found helpful in: WWII Germany, Venezuela, New Orleans Katrina...
     
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