Storing silver and gold is one of the best ways to protect yourself during a financial crisis.
But while they share a lot of similar properties, they both offer separate, unique benefits.
In today’s issue of Money & Crisis, Jim Rickards, bestselling author of Currency Wars, reveals why he stores both gold and silver… for two completely different types of crisis.
All the best,
Editor, Money & Crisis
P.S. Jim Rickards’ new book on the coming financial crisis uncovers one of the biggest threats to your wealth today… and shows you the simple steps you can take to protect your money and your family. For a limited time he’s giving away hardback copies to readers of Money & Crisis. Claim your free copy today.
How Gold and Silver Behave
During a Crisis
I’ve seen every kind of market you can think of dry up.
I’ve seen stocks fall with almost no bottom, I’ve seen derivative swap spreads blow out, I’ve seen the corporate bond market paralyzed, I’ve seen junk bond market paralyzed, I’ve seen mortgage markets just go no bid.
I’ve seen all these markets with liquidity lost, runs on the banks, runs on the money market funds… but gold is always liquid.
In the early stages of a panic, gold tends to go down as investors sell to try to raise cash to meet other obligations.
But once the weak hands are fleshed out, gold finds a floor and then it tends to go up. We saw this in 2008.
If a severe financial panic hits tomorrow, gold would probably go down for a few days or a week, maybe two weeks, but then it would go up sharply. And I would certainly be a buyer during that initial phase when it’s going down.
Silver During a Grid-Down Situation
If the power grid goes down, none of our digital payments work, there is no more bitcoin, there are no more cryptocurrencies, no ATMs, no debit cards, no credit cards, no wire transfers.
You’re down to cash if you have any, or gold and silver. And in that situation, silver would be the most valuable form of money.
Gold is an excellent store of wealth — at this point, gold is about 80 times more valuable than silver by weight. But silver is a more practical medium for transactions.
A one ounce silver coin is like a $20 bill in the market, whereas a one ounce gold coin is worth over $1,000.
You’re not going to pay $1,000 for a shopping basket full of groceries… you’re not going to pay $1,000 for a pair of jeans and a t-shirt… but you might pay $20 or $40.
On the other hand, if you had millions of dollars, you can’t put it in silver. That’d be too much silver, you’d need to build a walk-in vault. And that’s where gold is practical.
But to have something for transactions during a transition period… where maybe governments are instituting martial law, and they’re relying on the military to restore order, and the power grid’s down… in that world, silver is probably the best form of money.
That’s where the monster box comes in.
Everyone should have at least one monster box.
A monster box is a collection of 500 American Silver Eagles. They come from the U.S. Mint, so they’re 0.9999% pure silver.
They come in plastic tubes of 20 coins each, so you’re going to get 25 tubes in a monster box. Silver is around $17 an ounce. With commission, they’re probably going to charge you around $19 an ounce, which comes out to a little less than $10,000 for 500.
I would put it in a safe place. Don’t put it in a bank, just store it away. Don’t tell people you have it, don’t show it off to your friends, and just put it in a safe place.
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