![]() If the time ever comes that gold and silver coins were again used as money, coins would be worth only their metal content. Such coins are simply wrong for survival purposes. That is because hundreds of web pages promote numismatic and collector coins, as well as foreign coins. But, before going forward, it is imperative that we discuss which coins to avoid. The most useful forms of gold would be 1/10-oz Gold Eagles and 1/4-oz Gold Eagles. The best forms of silver for survival purposes are pre-1965 U.S. In doing so, these investors buy gold and silver in forms that can be used for money or to barter for goods and services. Those are the kinds of situations that investors who buy for survival purposes want to protect against. Shortly after those crises, Brazil defaulted on its international debt and its real sank. Meanwhile, the Argentinean peso and the Paraguayan guarani sank in value. Not only did banks close, but also when they reopened depositors were limited to the amount of money they could withdraw. Fear of a financial meltdown, which would close banks as in Argentina and Paraguay in 2002, is another.Īrgentineans and Paraguayans who had to foresight to bailout of the banking systems and covert their assets to gold or silver were protected. ![]() Those fears include the Federal Reserve printing so many dollars that the dollar will become worthless, which is the history of all paper currencies not redeemable in gold or silver. ![]() Investors who buy for survival purposes fear the worst. When the Federal Reserve got inflation under control in the 1980s, much of the gold and silver bought in the 1970s was sold and the proceeds put back in paper investments. 90% silver coins to 100-oz silver bars and 1-oz Krugerrands. During the 70s, popular precious metals investments included everything from 1-oz silver rounds and pre-1965 U.S. During the 1970s, precious metals prices skyrocketed in response to price inflation that reached 13%. Investors who fear inflation, either price inflation or monetary inflation (which causes price inflation), buy gold or silver as inflation hedges. One thing is certain, however, it was not for survival purposes. In fact, Buffett has said very little about his silver investment. However, it may have been an inflation hedge Buffett’s not saying. Buffett’s purchase, which became legendary in only a few years, was probably for investment purposes. For example, in 1998 Warren Buffett completed the purchase of 129.7 million ounces of silver. Investors who buy for investment purposes tend to view gold and silver as commodities, whose prices fluctuate because of supply/demand fundamentals. Generally, investors buy gold or silver for one of three purposes: as an investment, as an inflation hedge, or for survival purposes.
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