So you have decided to acquire precious metals as a barter component of your survival portfolio. Now, what do you do next?
There are many possibilities available: silver, gold, platinum, coins, rounds, bars, US mint, foreign mint, private mint and more.
We suggest baby steps until you reach a comfort zone. Purpose is another consideration. Are you buying for future commerce (like buying food) when fiat currency’s value is zero due to hyperinflation? Or are you trying to create a hedge against inflation to protect the future buying power of your existing wealth? Seek professional advice before investing. Our focus is commerce.
We believe the easiest way is a product you already know: constitutional (or “junk”) silver (US sovereign coins) that were released to circulation prior to 1965. We exclude “special coins” that have numismatic value due to condition (proof, uncirculated) or rarity. That extra value is likely to fade quickly when SHTF.
Pre 1965 dimes, quarters, and half dollars are actually about 90% silver! One face value dollar of them (10 dimes, 4 quarters, or 2 halves) contain about 0.715 Troy ounces of pure silver. In today’s market, they are worth more than 20 times their face value (1 dime is $2+, one quarter is $5+, and one half is $10+). In 1964, a newly minted quarter could purchase a gallon of gas or a loaf of bread. Today, that “junk” quarter can still buy a gallon of gas or a loaf of bread. That does not work with
1965 or newer coins because they contain no silver. It also does not work with the paper “fiat” currency in your wallet. Purchasing power of the “paper” has probably declined while you read this article!
You are not likely to find many of these coins in circulation. Fortunately, many sellers are available. The Quad cities have several local coin shops. We think shopping here is good because you can see what you are buying before closing the deal. Loose coins allow your inspection. Heavily circulated coins can be a bit worn resulting in them being less than normal weight because some of the silver has rubbed off. Some dealers will weigh your purchase to confirm actual weight and may
compensate any underweight with an extra coin(s). There are multiple large internet retailers as well. Be sure to compare prices and reviews. Be careful on Ebay.
Junk silver coins are usually priced by one of three methods: a multiple of the face value for loose coins, a total price for packaged coins (rolls or bags), or “spot plus premium”. Spot is the current (but always changing) market price for 1 troy ounce (ozt) of silver. Buried in all methods is a seller premium that covers seller costs and usually includes a profit. The bottom line is you want the most silver for your money. Examples (round numbers for ease of calculation):
1. 20 x face means you pay $2 for a dime, $5 for a quarter, or $10 for a half dollar. Say you buy
400 quarters ($100 face value) for $2000 you get 100 x 0.715 = 71.5 ozt of silver. If spot is
$25/ozt, the silver content is worth $1787.50 and premium is $212.50 (or about 12%).
2. Say you bought ten rolls of quarters (40 coins per roll with $10 face value) for $200 per roll.
You have the same results.
3. If you paid spot plus 12% you get the same results. Contact the undersigned for additional information.
Jim Arroyo, President, Yavapai County Preparedness Team, 928-636-8895, YCPT.org
The above material is educational information, NOT investment advice. Seek professional advice before investing.