Why Buy Silver vs. Gold?

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It’s a well-established fact in the financial industry that gold is one of the best assets to protect from the U.S. dollar’s decline and keep a healthy, flourishing precious metals portfolio. However, precious metals have taken something of a beating lately. Gold is still a great investment, and will likely rebound in very little time; but silver is a very important metal that is often ignored by investors. Once you read this, you’ll know why we recommend you buy silver instead of gold.

Why Buy Silver vs. Gold?

A Hedge Against Inflation

For one, silver is a great hedge against inflation. It has specific physical properties that ensure it is in greater industrial demand than gold. Even if the price of gold rises, silver will stay even with — and maybe even outperform — gold, on the whole.

An Important Business Transaction Metal

Additionally, you want to buy silver because it is useful as a business transaction metal. It has a lower value to weight than gold, meaning that it is extremely useful for small in person transactions, such as grocery shopping. If the dollar collapses tomorrow, silver can be a great way to have security and peace of mind that you can still afford basic necessities, no matter what the market does.

Just one half ounce of silver can buy you dinner. Yes, a half ounce of gold can buy dinner for you and at least 50 of your friends — but it is more volatile because of this increased value, while silver is not.

Stable and Dependable

Having a stable form of currency is critical for every economy. Just take a look at Cypriot’s banking crises, or barter markets and their continued evolvement and spontaneity. Greece and Argentina are two countries that prove particularly susceptible to the lack of a stable currency. This is where having a nice stash of silver can be of premium importance.

Useful in Technological and Industrial Settings

Another great feature of silver is that it conducts electricity and heat very well — better than any other metal on the planet. It has anti-bacterial properties, making it excellent for modern technological and industrial applications. Ever since the turn of the century, silver has been in high demand, with important applications such as photovoltaic power. This is one of the key reasons buying silver versus gold is so important.

Keep in mind that just one ounce of gold is 61.5 times pricier than an ounce of silver; but silver reserves, which are the amount of silver a mining company can get from the ground, outnumber gold reserves by a 10.6 factor. For this reason, the price of silver is roughly $116.50. This means that silver production is at least 9 times greater than gold — and most of the gold that is produced gets hoarded.

Silver is also much more appealing to small investors; you can go into a coin shop, take $1000 with you, and walk out with 40 or more ounces of silver. You can’t buy a single ounce of gold with that amount. This means that it’s easy to obtain, easy to trade, and easy to use as currency. American Silver Eagles are an example of one type of silver bullion that is easy for anyone to buy!

Fast and Long Movement for Silver Over Time

Silver has always moved faster and farther, historically, than gold. Since 2011, silver is down about 50%, while gold is down 35%. And, in the 1970s, silver bull markets rose about 38 fold while gold rose 25 fold. If you’re a believer in the idea that precious metals will turn higher in the future — as it is highly likely they will — then silver still always outperforms gold due to its natural quick and fast movement in percentage terms.

A Tangible Asset that Appreciates

Silver is not a depreciating fiat paper. It is a tangible asset that has intrinsic value and appreciates over time. Silver provides investors the chance to move into real stores of value, allowing for huge gains in future years. It’s often considered “The Common Man’s Gold” and is much more attainable for populations all over the world, while gold is not. Investors are gradually beginning to shift away from stocks, bonds, and real estate, and turning toward metals like gold because of its accessibility.

One can see that over periods of supreme inflation or destabilization, such as during political collapse, warfare, and dictatorships, silver holders always did well in these times. Maybe you live in a stable country where the chances of any of these events are unlikely, but owning silver will still give you the chance to protect your wealth — and also see immense appreciation.

Conclusion — Silver is One Metal Every Prepper Should Own

Since the gold to silver ratio has always reverted to its original historical average of 12 to 1, silver is stable, predictable, and valuable. The current affordability of this precious metal ensures that it is one of the most undervalued – and not to be missed – assets in financial history. Don’t miss the chance to buy silver before the price skyrockets to over $50 an ounce.

Silver is essential for any disaster prep kit. We keep American Silver Eagles and other silver bullion coins with our bug out bags, and we also utilize strategically-buried ammo cans to store other silver bullion. It’s going to be useful for currency in any survival situation!

We’ll be discussing this topic some more in the future, so stay tuned.