Last year, I finally bought my first gold coins after 20 years of considering it. Then I see Costco selling silver coins at 20 count each. $35 per 1 oz compared to the spot price of $30. Similar coins go for about $36 to $38.

It certainly takes less money than buying an ounce of gold and you get more coins.

I guess for me it would fall as a long term hedge against inflation. That’s my primary purpose. And let’s assume I have investments in the stock market along with lead. There’s also the secondary purpose for when SHTF. It strikes me as absurd for either silver and gold coins to have any value in SHTF circumstances with a protracted outlook.

But in any case, I’d like to hear people’s thoughts about the merits of silver compared to gold as a hedge against inflation and SHTF. IIRC, in the 80s, silver was $12 an ounce so it doesn’t seem like a good inflation hedge. And I’m not into it for collecting or appreciating its numismatic value.

There are other threads about this on SF, but here's my 2 cents.

Gold is more stable than silver. I'm still holding the bag on silver I purchased in 2011. I bought each of our kids a 1/10 oz American Gold Eagle when they were born 7-12yrs ago, they have all gone up in value nicely.

SP500 is a better investment and hedge against inflation over time. Guns are a more stable inflation hedge than silver and better in SHTF. That being said, Costco is a great way to purchase silver and gold. Their price is comparable to Kitco, Apmex and other online suppliers, but they charge more for credit card purchases. People buy through Costco having Executive memberships to get 2% back and sometimes additional credit card benefits of 1-2% back. You are then buying below spot. Before you buy, check local coin stores to check their buy price at the time so you know their profit spread and your ability to sell in the future (how liquid the Costco item will be in your geographical area).

I have bought some gold twice online through Costco and bought a silver bar in store. I shouldn't have bought the bar, it was $330 for the 10oz when it should have been $310 but I was there, and my wife didn't say no. The shipped versions come via UPS in an nondescript box, some people buy shipments totaling tens of thousands of dollars that way. Not me. I'm most likely done buying. It is cool holding a 1oz gold Buffalo, AGE or a gold bar though.

Whatever you do, don't buy from the US Mint, that collectible stuff hardly every goes up in value.

Depends how deep you're going into precious metals. $10K worth of gold is 4 coins in your pocket. $10K worth of silver is 326 coins weighing over 22 pounds. If your plan is to stack a substantial amount, you need a lot of room for silver. I think it is wise to have some silver but to set a goal (100-500 oz.) and once there, move to gold.

Oh, and referring to your comment about value in SHTF, gold and silver has been valued by humans for thousands of years through many, many SHTF's. I don't think it will be any different next time.

Good luck and have fun, and the above is nothing more than just my opinion.

I guess it depends on your purpose. Is it for investment to sell at a higher price later, or in prep if the dollar fails and we go into chaos.

I own both gold and silver but as stated, gold is more stable as an investment. I was stupid and bought a bunch of silver at $36 when it went up long ago and it has barely ever gotten above that since. Gold on the other hand has increased a lot.

If it is thinking of using as a bartering item if the SHTF and the dollar was no good, then that is where I have bartering goods like, sugar, alcohol, salt, pepper, rice, etc. Those items would be worth more in a SHTF situation, but it just depends on what you are buying for.

Gold is currently at an all time high.

Silver isn’t. Twice it’s been above $40 an ounce- 1980 $49.45 and 2011 $48.70.

The problem I see is- You pay a + premium to buy and a - premium to sell. A couple of weeks ago 10 ounce bars online had a delta of about $65 dollars between buying $345 and selling $282.

Silver is imho a better bet for profit in the next few years. If your goal is to preserve wealth that is what I'd do, prioritize silver. I hold about 5:1 silver to gold for that purpose.

Realize that the cost round trip to buy and sell is high. You will lose the premium basically. So if you pay $5 premium per oz of silver, that's a big percentage you will not get back when you sell. For pure profit, a fund that is truly 100% backed by physical metal (e.g. Sprott) is better math.

As an inflation hedge, it would have to be a pretty significant part of your portfolio to outweigh the drop in other investments. To put it another way, I view metals as part of a diversified portfolio not as a path to large profits. Even though I still expect a significant stock market drop in the next couple of years along with a rise in silver, I could be very wrong. Diversification is really important!

There are periods of time when gold and silver are terrible inflation hedges. I think of them more as their own category of market gamble.

For shtf scenarios, it depends what the event is. Generally I see physical metals as a backup for a major societal disaster. That is, once paper currency is no longer of real value, the next step will be barter to include silver and gold. So this would be a severe situation, like the Weimar Republic or worse. Maybe months into total chaos.

So I see other items as being more valuable. Food, water purification, medical supplies, other preps, defensive items, etc.

If the power goes down for a couple of weeks you'll be able to use regular currency even though electronic banking is down. And your preps keep you comfy.

Bottom line, I believe there is upside especially to silver. There are good reasons to go for physical coins, including privacy, but their purpose is not so much short term profit.

Having done this myself, the premium you pay to get into gold and silver is so large that it’s hard to recoup. I don’t have the spreadsheet in front of me, but the gold bullion in an IRA, having gone up pretty dramatically, I could sell for about what I paid for it.
I also have five figures worth of gold and silver coins, but now I see them as something worth cashing in to use the money for something else.

One other thing...don't limit yourself to Costco. Set up accounts or email notifications with other online dealers. You'd be surprised at how low premiums can go when they get a glut of something, and they'll let you know when that happens.

ETA: For instance, Monument Metals has 1 oz silver maples for under 5% right now and although I'm not usually buying silver, that's just too good to pass up.

Precious metals are probably not a good investment.Over time, historically the stock market will outperform them.

Gold and silver are also subject to government confiscation. Yea, I know, you won't turn yours over but it would severely limit your ability to dispose of your coins, etc.

For SHTF silver will be more useful than gold. Silver has historically been what the peasants used while gold was mostly limited to government, bankers, and international merchants. Plus, spending gold may bring unwanted attention from the local warlord wanting to seize it.

Silver should have an upside in that it is widely used in electronics and solar panels.

my answer is always the same - bags of junk silver coins.

I question the value of any precious metal holdings in a true SHTF scenario, Who would want to trade your metals for their food/ammo/etc? Inflation hedge, I get, but that still assumes a market exists, and that there will be no technical breakthrough or fad change that erases value. Lead+copper (ammo) should always hold some value, but cigarettes/coffee/alcohol/matches may be better trade goods.

My Dad had some silver. His logic was that while gold was worth more, Are you buying/trading in increments that large?

Kind of like buying lunch with $100. bills- and no one has change. Silver, in a SHTF situation, is a more manageable size coin.

New gold and silver coins are being faked in huge bulk.

People are buying them and selling them under spot or just at spot on eBay.

quote:

Originally posted by architect:
I question the value of any precious metal holdings in a true SHTF scenario, Who would want to trade your metals for their food/ammo/etc? Inflation hedge, I get, but that still assumes a market exists, and that there will be no technical breakthrough or fad change that erases value. Lead+copper (ammo) should always hold some value, but cigarettes/coffee/alcohol/matches may be better trade goods.

I agree. If the SHTF badly enough that people are bartering goods, lead and gunpowder will the be coin of the realm.

quote:

Originally posted by bigwagon:

quote:

Originally posted by architect:
I question the value of any precious metal holdings in a true SHTF scenario, Who would want to trade your metals for their food/ammo/etc? Inflation hedge, I get, but that still assumes a market exists, and that there will be no technical breakthrough or fad change that erases value. Lead+copper (ammo) should always hold some value, but cigarettes/coffee/alcohol/matches may be better trade goods.

I agree. If the SHTF badly enough that people are bartering goods, lead and gunpowder will the be coin of the realm.

One is not mutually exclusive of the other. Beans and bullets, You Bet. Silver has been money for a long, long time, right Judas?

The demand for silver in solar panels is expected to increase, which could lead to a silver shortage. The Silver Institute projects that the demand for silver in solar panels will continue to grow, especially in 2025.

In 2023, the solar industry consumed about 105 million ounces of silver.

The demand for silver in solar panels is expected to continue to grow.
The solar industry's share of global silver has almost tripled in the past 10 years.

The global silver market was undersupplied by 237.7 million ounces in 2022.

Primary silver mines produce only about 28% of the metal.

Silver use per solar panel is also growing.

WisdomTree Europe forecasts that the price of silver will reach $40/oz by Q3 2025.

I wouldn't consider either a solid investment plan.

quote:

Originally posted by 220-9er:
I wouldn't consider either a solid investment plan.

I agree. Silver and Gold are always easy to buy, but you get killed on the spread when you go to sell.


You will notice that Costco sells it but doesn't buy it back again

plus, if you have to pay sales tax, you get killed.

quote:

Originally posted by 220-9er:
I wouldn't consider either a solid investment plan.

As I said in a thread back in September,

"Gold is not for investing. It's for piling on the table and letting it run through your fingers. More is better."

quote:

Originally posted by Mars_Attacks:
New gold and silver coins are being faked in huge bulk.

People are buying them and selling them under spot or just at spot on eBay.