Survival Planning - The Argument Against Precious Metals

Starting to get a "back and forth" on Precious Metals whether or not this is an essential item for the well prepared survivor. Anonymous has left this new comment" "I didn't sink all my available liquidity into gold and silver. I suppose I could have just left it there. My point was that for 20 years I could not make a profit with it and in fact since those were to 20 go-go years of the stock market I probably could have turned all that into a million dollars. So I don't have a problem with some PMs but keep in mind the silver you buy today for $38 may drop like a rock and not reach that price again in your lifetime. I don't like to gamble and PM investing is gambling. Yes it is a viable way to prepare for an economic collapse but hopefully you have other plans as well. Today I am PM free but I am a prepper never the less. When TSHTF I my well sell you some food for gold and silver."

UrbanMan replies: Nor did I sink anything but what I could afford to spend on Gold and Silver,...mostly Silver. I don't think the word "profit" should even in the equation when it comes to talking about the validity of having Gold sand Silver in case of a major collapse.....again, the lifeline purpose as opposed to investment.

Sure there are many investors who think the coming collapse, as bad as it may be, will also be fairly short and the Country will come out of it on the good end and those with Gold and Silver will be the new rich people. This is what George Soros and many others are doing and that is ensuring they have a lot of Gold and Silver so they can ensure they will be among the riches when this Country comes out of a major collapse.

I have been talking to a friend of a friend, who is a local investment advisor from a national chain. Aside from the fact that he is very close to having to find another line of work because of the downturn in investing and returns, he recognizes the probability of a collapse. With two small children under 6 years old, he is very scared. Even this guy who made his living helping people with financial planning and investing has now bought some physical Silver as a lifeline......as well as stockpiled some food and bought a handgun to supplement his hunting firearms.

Without a doubt there are Preppers, and I know some of them, that refuse to buy PM's, even coins for Silver melt value, because they believe they won't be able to buy enough to make a difference. I think that's just crazy. If you didn't have a firearm, would you not buy one even though you couldn't afford a high end AR? To me this is the same line of thinking.

I have never placed PM's in a priority position unless all of your other needs are met. Everyone has to determine what that is on their own. In fact, I would consider many other items more essential than Gold or Silver. Those items would be: firearms and ammunition; food and more food; water purification means (in depth meaning many systems); seeds; tools; radios, flashlights, batteries and recharging systems to include solar panels; good clothing and footwear and other personal survival gear. There should not a major issue with one getting better in all areas at the same time to include purchasing PMs even if you only can afford one Silver ound at a time.

I won't be using Gold or Silver to buy food, firearms, ammunition, batteries, seeds, clothes as I have enough of those items already,...at least for the short term.

I have PM's in case I need something I forgot, or maybe a fuel purchase or just about anything that cannot be foreseen, hence stocked.