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Wednesday, March 16, 2011

What Is the Value of Survival Silver?

As you see at the top of the page one of our tag lines is, "The number of ounces you own define your wealth (survival), NOT the price per ounce."

The trouble most people have with valuing silver as a survival tool, and this includes even the most savvy investors on Wall Street, is thinking of it in it's value in terms of acquiring goods and services rather than being cashed in for units of currency.

If the US Dollar is worth nothing, then silver can not be equated to US Dollars per ounce. One needs to think entirely differently about the value of Gold and Silver as a currency. It's very hard for most people to think in those terms and to be honest we won't know what an ounce of Silver or Gold will buy you when the dollar in no longer the means of exchange. The market, at that time, will set the cost of goods and services; food, water, gasoline.

One must assume that in the beginning most people will think in terms of it's Dollar value, but as time moves forward a real value in terms of tangibles will be established.

Eric Sprott says this about the subject:

I think most mainstream investors still struggle to appreciate the changes that have occurred in precious metals market since 2008. Gold is reverting back into a world reserve currency – it’s so clearly visible now. It’s one of the only asset classes that has ‘worked’ for investors and savers. And yet there remains this large contingent who continue to question its legitimacy as an asset class.
Mainstream America, or for that matter everywhere in the world, will struggle when it comes time to use it as a monetary alternative. Categorically across the board money mangers in all forms refuse to view precious metals a a measure of wealth, a means of measuring value, if you will. They have been trained and have worked their entire careers investing and managing a fiat currency and have not come to understand that it is a hard currency. It is without a doubt a risk free investment even if the dollar, some how, manages to hang on. As Eric Sprott said above, the world is moving to Gold (or Gold backed currencies) as a reserve currency.


In today's financial environment one simply can NOT count on dollars as a wealth source. Owning precious metals is the only safe place to place your investment dollars, while you can still use them to purchase Gold and Silver.

Silver is the most easy to obtain, anyone with a few bucks can buy an ounce, and is of a lower value then Silver, again based on dollars. Gold has always been that pretty, shiny yellow metal and therefore has always been valued much higher using a fiat currency as a unit of measure. 

However, using it as a hard currency for small purchases such as water, food, gas, medicine, etc. would be difficult. Remember, for a long time people will equate it back to it's former value based in dollars. Therefore Silver will have a much better trading value for small purchases. A couple of ounces of Gold could buy you a car, but not a ham sandwich. You can't just hack a piece off of your bar or coin.

We recommend buying Silver in ounces, either bars or coins, and we have our Silver broker manufacturing fractional Silver coins, in 1/10 ounce coins. 5, 10 and 100 ounce sizes are great for investment if things were normal with regard to the state of the economy. 


Fractional sizes are readily available in Gold now and they are also a great idea. Remember, while more cumbersome to store and keep track of, you'll be glad you have small sizes when the crunch hits.

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