Precious Metals in the Collapse: Junk Silver vs. Pure Silver

Precious Metals in the Collapse: Junk Silver vs. Pure Silver

April 23, 2018 featured 0

Volatility is real. Whether its perceived or not it is a very real thing that we all must understand. Prices fluctuate because of it and that touches our savings, our gas tanks and our dinner table.  America has just dumped the Yahtzee cup and we must wait to see how this will affect the markets.

If you are uncertain about the markets put some money into tangible precious metals. The question we are exploring in this article is which type will serve you best in a time when these metals could be currency.

What For?

With all this talk of precious metals in the prepping community, what is the real purpose of having coins, bars and other shaped bullion on hand?

To really understand the answer to this question you must explore the collapsed landscape. Its easy to watch a movie that features a collapsed setting or read books about it but have you ever sat down and applied it to your life?

Most Americans save very little money and they don’t keep much cash around either. That means if a catastrophe shuts down ATM’s, jobs and mail services the flow of income to most Americans will stop as well. While most stores will be picked over the clear majority of Americans won’t have any cash to purchase with either.

In this instance you can see how silver would be an alternative that would give you buying power.

There are two types of silver that will work well as currency. The first is called “junk silver” also known as 90% constitutional silver. The second is pure .999 silver. Most silver coins and bars, from reputable suppliers, are .999 silver, unless otherwise specified. There is always an ongoing debate about which is better. We are going to look at both options in this article.

JUNK SILVER

Coins that were minted prior to 1964 had a decent portion of their makeup in silver. These pre-circulated coins also have premiums in price that are considerably lower than the amount over spot for .999 pure bars or coins.

In fact, the biggest benefit when it comes to junk silver is the fact that you can get your hands on it, by chance, for free! If you go through that change jar you will likely find some pre 1964 coins that have sliver value. Junk silver also comes with a familiar face. While the purity of random silver bars might come into question, that Washington face is going to make people comfortable when it comes to a barter or trade situation.

Now, the problem with junk silver is the dating and the understanding of values.

Let me pose you a scenario. A Washington quarter minted between 1932 and 1964 is going to have a silver value of nearly three dollars, based on today’s pricing on silver. Not bad, right? What if you want to buy $150 worth of good? The person you are bartering with will have to examine 50 coins for the proper date before completing that transaction, if they are smart. That is a lot of work to get $150 and those goods may wind up costing you more because of this added work and time. Now factor in dimes, nickels, liberty quarters, half dollars, peace dollars. These all have unique amounts of silver in them based on a certain date range. It can get a little complicated. I am not a fan of complicated when it comes to a trade or barter.

Chart Courtesy of Coinflation.com

PURE SILVER

The obvious difference and benefit of trading with pure silver is that you avoid the chart above. All .999 pure silver is the same price per ounce and that makes for a simple trade.

Now there are all types of mints across the nation. There are also people who melt down their own silver and create coins or bars of their own. The most common sizes that you are going to get your hands on will be 1oz and 5oz derivations.

The value of silver has remained stagnant over the last few years. That is not always the case with silver but recently its been right around $16-17 per ounce. So that begs the question:

What if I need something that is less than $16. Well, you will likely be paying more for something than you should. Now there are ¼ oz rounds that you can buy, if you want to go that route. There is a better way to prepare for the barter.

If you are looking for silver that is designed for the barter you must check out KOLGA’s dividable silver bars. These silver bars come in 4,5 and 8oz derivations. They break down to ¼ oz pieces, ½ oz and one oz to assure that you aren’t losing out on any barter. I have since referred to it as Prepper silver because that is exactly what it is!

If you are looking for silver that is designed for the barter you must check out KOLGA’s dividable silver bars. These silver bars come in 4,5 and 8oz derivations. They break down to ¼ oz pieces, ½ oz and one oz to assure that you aren’t losing out on any barter. I have since referred to it as Prepper silver because that is exactly what it is!

SILVER IN THE BARTER

After a full-scale collapse has set in, the idea of currency and dollars in the nation may go away. Cash will not hold the same appeal as before. Instead, the barter will rule. Our dollars will be exposed as the worthless chlorophyll colored sheets that they are.

You will want a currency that will get you the things you need. This could be any number of things, but I must imagine our minds will acclimate to silver as money much easier than, say, cigarettes or bullets. Not that these won’t have their value, silver is just more comfortable for everyone.

Gold is too valuable, and you will not be able to utilize its buying power, except in big purchases, without being taken advantage of.

There is also one thing I want you to consider in a barter. Speed. You want the transaction to go fast with little arguments or even discussions. Remember, you could be living in a time where laws are a thing of the past. A barter is about resources not inciting a gunfight. In my analysis .999 pure silver is the answer to currency in the collapse.

 

 

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