The Case For Silver Over Gold For Preppers

Dec. 21, 2012 came and went without the planet Niburu colliding with Earth. Though the world was spared from a supernatural extinction-level event, the global economy continues to be fragile. Most survivalist websites encourage preppers to stockpile gold in the event banks close down and paper dollars become worthless. This would be a great strategy if gold weren’t too expensive for the average person to afford. The price of gold has increased more than 500 percent since 2003.What gets lost in gold’s lustrous beauty is the price of silver, which has increased in price by more than 10,000 percent in that same time period. Here are a few reasons why survivalists should consider silver over gold.

Affordability

An ounce of gold, as of mid-January, will set you back around $1,700 per ounce. Silver, on the other hand, can be had at a much more reasonable $32 per ounce. Bullion dealers, such as US Money Reserve, sell silver bars and coins at real-time prices everyday. Silver investors can watch the market throughout the day and pounce whenever the price slightly dips. Another method is to buy junk silver. Dimes and quarters minted in 1964 or earlier were made of 90 percent silver, thus are considered bullion coins. It is illegal in the United States to melt down coins for bullion, which takes away some of the appeal of junk silver. However, the silver content in them makes them valuable for trading when dollars are no longer respected legal tender.

Industrial Demand Drive Value Up

Silver is a great hedge against inflation because it is in high demand. Solar energy is growing in popularity because of rising fuel costs and photovoltaic systems are more affordable. The solar cells that capture the sun’s energy are made primarily from a silver paste. The Silver Institute estimates the solar industry alone will require 100 million ounces of silver in the year 2015. Silver is essential in conducting electricity and is one of the best conductors of heat on the planet. Ethylene Oxide (EO) is an important element because it is used to produce products like antifreeze, ink, certain pharmaceuticals and many other common items. EO cannot be produced without silver.

$100 Per Ounce Silver by 2015?

High demand and limited supply will only force the price of silver upward if you believe in Economics 101 principles. There are some industry experts who predict silver will reach triple figures in the next five years. Others have gone as far to say silver will soon surpass gold and reach the $3,000-plus mark if the dollar completely collapses. Peter Schiff, commentator and owner of Euro-Pacific Capital, believes silver will eventually surpass $200 per ounce because of the central banks continually printing more money, and debasing its value.

By Melody Schwartz