Gold and Silver Coins as a Survival Cache
Gold and silver coins are the primary way to stock up on recognizable assets that you will be able to use in the future if for some reason or situation arises where you will not be able to use the printed money from your country to by food or provide for your family.
The price of both gold and silver are relative to the international exchange rate of your local currency to the U.S. Dollar or the Euro, but that is irrelevant in the bigger picture of things when you look at the buying power of your paper money today and in the future.
If something happens that causes your local paper money to not be accepted by local vendors for daily purchases, then you need to have some sort of higher quality and a “more in demand” type of valuable in your possession to buy the food and water you will need until the government gets back on track which may take a few months to even a year or two.
If you live in a country that is not primarily English speaking, the best types of gold and silver coins to stock up on are the ones that people from your area will recognize for their international quality and value.
The U.S. Double Eagle and the Canadian Maple Leaf are very recognizable, but the South African Kruger Rand is the standard when it comes to gold coinage for the specific purpose of quality and weight.
Almost all of the gold coins that are produced by government mints are exactly 1 ounce and 90% pure. Traditionally a mint will convert the gold you dig out of the ground into a coin or bar, but they have always charged a 10% fee that is realized in the form of the purity of the final product you receive. The governments and mints try to tell you that they add nickel and copper to make the coin stronger so it will withstand the wear and tear of daily use, but that is a load of bull because I do not know of any place today I can spend gold.
If I walk into a Chevy dealership will I be able to convert 20 gold one ounce Double Eagle coins into a new Corvette? Certainly not; they will send me down to some dealer that will buy my gold coins and then I need to take a sack of cash back to the dealer.
What if things get a bit bad socially or economically and I want that same Corvette and my paper money is worthless? Or at least worthless to the person I want to purchase a product from. Then I need to have a type of commodity that has a value above and beyond the value of the worthless paper.
This is just an example, but for three to four generations the American society has been taught to save their money, their paper and copper clad coins. These do not have any true or real value. This type of currency is worth less than poker chips and they cost about 4 times more to produce. Yet our children are banking them and hording them like they will be their salvation at some point in the future.
I personally do not think the banking system will collapse as bad as the dooms day people say, but I do think there will come a time when gold and silver will be a great investment for safety and security.
What, that time is now. In the mid 90’s I was buying silver coins as stock silver from coin dealers. They were in bank bags and weighed 52 pounds per bag. When silver hit over $40 per ounce, I was not disappointed at all.
At the same time gold was very high at $285 per ounce so I am not too upset that I bought Double Eagles and Kruger Rands by the pound also.
Even though the relative price of gold and silver looks like it is very high today, the truth is that the value of both metals is mostly relative to the buying power of your local currency. If the price of gold seems like it is up, that only means the value of you paper is down and the price of a loaf of bread or a gallon (or liter) of mil is up also and probably exactly proportional to the price of gold.
The value of precious and industrial metals is pretty much constant over a long period of time and they are the best way to preserve and protect your buying power when you do not know or have a concern about the value of the paper you are holding.
This is why countries and governments mint gold and silver coins in the first place. The value of their paper money is only as good as the way people feel about their money. Not the actual value, the way people feel about the value.
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