The last two years have seen the U.S. economy edging closer and closer to downturn, depression, and possibly even a full-blown collapse. It seems every bit of good news is followed by two pieces of bad news. The trajectory is not a great one with unprecedented bloating of the national debt, forced ESG investing, an incessant push for CBDCs, de-dollarization, and a teetering banking system.
You know it’s bad when 3% inflation is considered “good” news. The Fed’s target is 2% and leftists complained about that being too high during the Trump era.
Understandably, many Americans are seeking to protect their wealth and retirement with physical precious metals. But here’s the thing, and this is important to understand. The vast majority of precious metals companies in America deal only in numismatic, or “rare,” minted precious metals.
In a good economy, there’s nothing wrong with this strategy. These “special” coins and bars have an opportunity to appreciate outside of the price of gold and silver.
The problem is we’re not in a good economy and unless one believes things are going to turn around in the very near future, it makes more sense for Americans to purchase simple rounds or bars based on weight rather than rarity to put in their safes or to back their retirements through self-directed IRAs.
This is why Ira Bershatsky at Advisor Metals strongly recommends rounds and bars. He can sell numismatics just like everyone else, but considering the current state of the economy, filling your safe or depository with as much gold and silver as possible based on weight makes the most sense.
He listed three reasons why this is the case:
- Easier Liquidation: When the time comes to sell your precious metals, finding buyers based on weight is far easier than finding them based on rarity. This is especially true if the “crap hits the fan” in an economic collapse. During such times, an ounce of silver is an ounce of silver. Nobody’s going to pay a premium just because a coin has Joseph II of Austria engraved on it if the apocalypse is happening around them.
- Tied to Value of Metals: With numismatics, the value is based on demand. This is why they can be marked up literally hundreds of percentage points above the cost of the gold and silver itself. With rounds and bars, the value is based on the weight. This means far less price fluctuation. And while the chances of scoring a big return from rounds and bars is low, the stability they offer act as the ultimate hedge in a down economy.
- The Post Apocalypse: If things don’t get as bad as many think they will or if the economy dramatically turns in the right direction followed by a red wave in 2024, then rounds and bars make sense. If things continue to go south for the economy, then rounds and bars make even more sense. But if the situation deteriorates and the economy collapse, rounds and bars make FAR more sense than numismatics. In a post-apocalyptic society, both the ease of liquidation and value retention of rounds and bars go up exponentially.
The Doomsday Naysayers
“You can’t eat silver coins!”
This is a common retort whenever anyone writes an article or does a video about buying gold and silver ahead of a “crap hits the fan” scenario. In truth, they’re partially correct. If the economy collapses and society devolves instantly into chaos, gold and silver will not keep your family from starving… at least at first.
But throughout human history, precious metals have been the only constant within the world’s economy. They have always held value. There have always been those willing to buy or trade for them. Even during stages of localized apocalypse when huge groups of people were displaced, they kept their precious metals with them to help them rebuild in their new homelands.
It is safe to assume that if the “crap hits the fan,” the initial state of chaos will be followed by new normalization. Any time this happens, alternative economies have formed and invariably gold and silver have been the centerpiece in such scenarios.
And as Ira always tell people concerned about a soon-apocalypse, gold and silver are secondary considerations AFTER you have food, water, ammunition, shelter, energy, and medicine covered. Those who are struggling to keep food in the cupboard shouldn’t be buying gold and silver. Those who have their supplies and situation in order and are ready to prepare economically should DEFINITELY consider gold and silver.
Contact Ira Bershatsky at Advisor Metals today to see how he can discreetly send metals to your home, help you with rollover or transfer retirement accounts, or both.