Survivalists and preppers accumulate silver in preparation for a crisis, but there are more benefits to investing in silver. Here’s a list of reasons why everyone should start thinking about buying and selling silver.
In this article:
- Why Silver?
- Manufacturers’ Demand for Silver Is Massive
- A Big Market of Willing Buyers Look for Silver
- Silver Coin Investing Have Helped People for Ages
- Preppers Consider Silver as a Great Hedge Against Inflation
- Preppers Are Buying Gold and Silver for Survival
- Historically, in Times of Crisis, Precious Metals Usually Rise in Value
- Survivalists Optimize Their Stockpile with the Best Silver Coins for Survival
- Preppers See Silver as a Real Physical Currency
- There Is a Limited Supply of Silver
- There Are Different Ways for Investing in Silver
- Those with IRA Can Invest in ETF
- Silver is Cheaper than Gold
- There’s No Limit to Silver They Can Have
A Prepper’s Guide to Investing in Silver
Investing in silver is one of the effective ways to accumulate wealth, especially for retirement. Silver has a myriad of uses.
For example, the smartphone or computer you are using to read this article has parts made of silver. It’s also used in everything from making medical cream to helping create solar power.
Additionally, investing accounts for a large portion of the demand for silver, with some people even purchasing it within their IRA. Even collectors hoard even junk silver coins for speculative profit or hobby.
Like collectors, survivalists and preppers recognize silver’s worth. They tend to store it for safekeeping in case a disaster occurs in the future.
1. Manufacturers’ Demand for Silver Is Massive
In 2017 alone, manufacturers used a billion ounces of silver. Electrical products, like wirings, and electronics, like computer chips, used 242 million ounces of silver.
The jewelry industry used 209 million ounces. Silver has the highest thermal conductivity of any element, making it perfect for manipulating temperature.
Since it is brittle, it has the highest electrical conductivity of any metal. It is easy to shape, investors and preppers alike see the value in storing silver.
However, not all kinds of silver are accepted in a silver IRA, so investors should read about investing in silver IRA rules before doing so.
2. A Big Market of Willing Buyers Look for Silver
Due to silver’s relative abundance and lower price in comparison to gold and platinum, public use is higher. Thus, a market of buyers is easier to find.
For example, jewelers love this precious metal due to its malleability and shine.
National banks or central banks also have reserves of both gold and silver. Many countries still use silver as the main component for minted coins.
Another reason to begin silver investing is the growing popularity of precious metals as legal tender. It is now acceptable in Texas, Utah, and Louisiana.
It means investing in silver isn’t limited to storing silver bars. These now have purchasing power, and owners can use them as cash.
Connoisseurs and collectors also gather as many important and collectible silver coins as possible to add to their collection.
3. Silver Coin Investing Has Helped People for Ages
Here’s another reason to do some investing in silver. Preppers see silver coins as a stable and reliable mode of exchange.
Since investors tend to think the same thing, silver coins have been part of IRAs for quite some time. In fact, some investors have seen great returns with it, especially when the economy is not performing well.
Silver has also been used consistently throughout history. While gold has always been the subject of envy and interest, silver has remained an unsung hero.
Kings and nobles used gold to exchange assets, but the masses used silver simply to buy food to live.
Preppers, on the other hand, recognize the value of both gold and silver. Gold is capital, and silver can be used as a method of exchange.
Due to the price, stability, and many uses of silver, preppers see this metal as a necessary investment in order to prepare for whatever may come in the future.
4. Preppers Consider Silver as a Great Hedge Against Inflation
Precious metals like gold and silver have been physical stores of value since time immemorial. Wars have even begun due to these shiny pieces of metal.
Survivalists and preppers recognize the value silver has maintained over centuries. Due to this, they store as many ounces of silver as possible to stay prepared.
Fiat currency, on the other hand, relies on the governing entity to back up its value. Even these entities, which are governments and banks, store precious metals to function as real physical assets to give further proof of a bank’s solvency.
What is fiat currency? It is a legal tender issued and backed by the government. Since inflation is a natural byproduct of printing fiat currency, a real physical asset like silver can sustain the waves of inflation as the market dictates supply and demand and not just any entity.
5. Preppers Are Buying Gold and Silver for Survival
Silver and gold both function as stores of value and modes of barter.
When an economic crisis or economic downturns arrive and leave the current fiat system untenable, preppers can use these precious metals to exchange and barter materials.
Surviving does not only mean gathering food and securing shelter and water but also sustaining a specific lifestyle.
Since people want to maintain their standard of living, preppers must consider what items can fulfill as many roles as possible.
Among all precious metals, silver has unsurpassed utility both as a currency and as a necessary electrical material.
This makes it one of the precious metals worth investing in for preppers.
6. Historically, in Times of Crisis, Precious Metals Usually Rise in Value
Survivalists and investors alike accumulate silver and gold. Survivalists think that the price of precious metals will increase in crisis situations mainly as a mode of barter.
Investors speculate that if the market turns bearish, smart traders and investors will move their assets to safer investment vehicles like precious metals.
For instance, if the bears dominate the stock markets, money may flow from stocks and shares to bonds and precious metals like gold and silver.
During the housing bubble and credit crisis of 2007 to 2008, stock prices crashed while precious metals and commodities saw an increase in value.
While past performance is not indicative of future results, the psychological concept of safer investments still perpetuates the market.
Due to the longevity, as well as the stability of its value, survivalists and investors see silver as a financial safeguard in crisis situations. That’s another reason for investing in silver.
7. Survivalists Optimize Their Stockpile with the Best Silver Coins for Survival
Preppers prefer to invest in bullion bars, rounds, and coins. Bullion is purchased by weight, so survivalists can determine precisely how much they want to have on hand in case an emergency occurs.
They can also select the size and shape by opting for bars, rounds, or coins depending on their needs.
The bars tend to be heavier and more difficult to carry around. This is why some preppers choose to invest in bullion coins instead, especially if it’s premium or fine silver.
One of these coins is the American Silver Eagle. It’s known both for its purity, having 99.9% silver, and its reputation as being the official silver bullion coin of the United States.
Another is the Canadian Silver Maple Leaf, which is also a legal tender. Like the American Silver Eagle, it also has 99.9% silver.
Getting your gold, silver, and other precious metals from a reputable specialist is a must. For instance, Birch Gold offers silver coins that are legitimate.
Buying bullion from anonymous sellers can have pros and cons. By using the services of a reputable entity, you can be assured that your silver coins are genuine.
8. Preppers See Silver as a Real Physical Currency
Survivalists do see the vital role of fiat currency. It is easy to use and to acquire compared to digging out mineral ores and then purifying them into tradeable assets.
Silver is a happy compromise, though. This shiny metal is more difficult to acquire compared to fiat but is easier to get than gold or platinum.
Due to the middle ground that silver offers in terms of its acquisition, silver is a sound currency to use as a mode of barter for everyday life if a crisis occurs.
9. There Is a Limited Supply of Silver
Mineralogists and geologists have studied the global silver ores left unmined. According to a global silver supply study, silver mining will reach its peak around 2027 to 2038, with 2038 as the most likely date.
A growing global population means a more significant demand for products, especially for electronics and electrical parts. As silver is an essential metal for manufacturers, acquiring physical silver, as well as currency derived from the metal, can help put a prepper’s mind at ease.
10. There Are Different Ways for Investing in Silver
Preppers and survivalists may consider investing in silver for their industrial applications or their value during buying and selling. Thus, they look for actual silver.
There are other ways to invest in silver, however. These include the stock market and futures and options.
Investing in Silver Mining Stocks
For those who want to trade in the stock market, they can search for mining companies (silver miners) with public offerings. They can then buy mining stocks or shares.
Depending on the type of shares they purchased, they can receive dividends on top of the profit from the increase of their stock value, which are tied to the fluctuations in silver prices.
Silver Futures and Options
Futures trading is for those who want to hedge their current silver investments. In this type of investment, the investor’s profit depends on the changes in the value of silver over time, not on current value.
When a person has a silver futures contract, it means they need to purchase or sell their silver at a specific date. Since this type of investment requires in-depth knowledge and expertise of the market, it’s more ideal for more savvy precious metals investors.
For options, the buyer or seller of silver has the right but not the obligation to complete the transaction anytime at a specific price. This is as long as the transaction is within the contract period.
11. Those with IRA Can Invest in ETF
Preppers and survivalists can also invest in precious metals through exchange-traded funds, which invest in bundled assets under a single investment. A silver ETF offers a way of investing in the precious metal without having to directly buy bullion.
A silver ETF investing primarily in hard silver assets will typically be set up as a grantor trust, with the custodian holding the assets. In this scenario, each share represented by the ETF gives it a right to a specific quantity of silver (measured in ounces).
This type of investing in silver can create more stable cash flow. Compared to actually owning the precious metal, a silver ETF is liquid and is easy and fast to trade.
Silver ETFs, however, can have high capital gains tax rate. To avoid that, they can hold these investments under their IRA, which are exempt from this tax.
12. Silver is Way Cheaper Than Gold
For preppers who are looking into investing in hard assets like precious metals, it can come down to a decision between investing in silver or gold. However, for investors who are just starting out or those who don’t have a lot to spare just yet, gold can be too expensive. Silver is way cheaper than gold, so it can be a good entry into precious metals investing.
13. There’s No Limit to Silver They Can Have
How much silver should a prepper have? The answer is there’s no limit.
Silver comes in many different forms. They can buy silver bullion for sale, which can be cheap and a good complement to sovereign coins.
They can also invest in the commodity through the stock market, ETF, futures, and options. These can provide higher returns despite their volatility.
In fact, it’s ideal to own different types of silver for diversification. This way, if one class doesn’t perform well, the others can offset the possible losses.
Is silver a good investment? The answer is yes.
These are thirteen reasons why preppers and investors alike invest in silver. Due to its flexibility, luster, conductibility, malleability and other practical uses, a market is easy to acquire
Investing in gold and silver, though, requires planning and research. It also demands a better understanding of the prepper goals.
Most of all, to succeed in it, even survivalists should work with professionals who have a deeper technical knowledge about precious metals.
Do you have other reasons why you are investing in silver? Let us know in the comments section below.
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Editor’s Note: This article was originally published on November 15, 2018, and has been updated for quality and relevancy.