With inflation hitting levels we haven’t seen in decades and economic uncertainty becoming the new normal, preppers (and maybe even the sheeple if they’re paying any attention) are facing a tough choice: Do you stockpile survival supplies or put your money into hard assets like gold, silver, or even bitcoin?
It’s a question that keeps coming up in prepper circles I occasionally read, and for good reason. Every dollar you spend on canned goods or fire starters is a dollar not going toward precious metals, which as you well-know, continue to rise in price. Conversely, every ounce of silver you buy is money not spent on water filters or medical supplies or whatever else it is you might need.
My question for you is: which approach gives you the best protection when the economy really goes sideways?
The Case for Stockpiling Physical Supplies
Let’s start with the obvious advantage of stockpiling. When you buy supplies now, you’re guaranteeing access to items you know you’ll need. There’s no guessing, no hoping someone will trade with you (and not just take it or worse), and no worrying about whether your assets will hold their value.
Take something as basic as water filtration. If you buy a quality water filter today, you know you’ll be able to drink clean water tomorrow, next month, or next year. The filter doesn’t care if the dollar collapses or if bitcoin crashes. It just works so long as it’s been properly maintained and stored.
The same logic applies to food, medical supplies, fuel, and basic necessities. A case of canned vegetables will feed your family regardless of what’s happening with currencies five years from now. Antibiotics will still treat infections (with some caveats regarding effectiveness years down the road). Propane will still power your camp stove indefinitely. These items have intrinsic value because they serve essential functions we, as preppers, fully understand.
There’s also the psychological benefit. Having physical supplies gives you peace of mind that’s hard to put a price on. You can see them, touch them, and know they’re there when you need them. That certainty becomes incredibly valuable when everything else feels uncertain because panic is a real thing! And it causes us to make rash decisions, but having supplies on hand ensures there’s a buffer between you and panic.
Plus, many stockpiled items serve double duty as barter goods. This list of 50 bartering items, for instance, reminded me just how many everyday supplies become extremely valuable in tough times and how it’s always being talked about by someone. Things like batteries, soap, toilet paper, and ammunition aren’t just useful for you … they’re items other people will desperately want and be willing to trade for or fight for.
Of course, I’m not a huge fan of stockpiling for barter since I much prefer you’re stockpiling for YOUR own benefit and use. Honestly, I lean very much toward the stockpiling side of the equation.
The Hard Assets Argument
But here’s where the asset approach makes sense. Hard assets like gold, silver, and bitcoin are designed to protect your purchasing power when currencies lose value. History shows us that precious metals have maintained value through economic collapses, wars, and hyperinflation scenarios. It’s not perfect, but it’s better than holding cash or, worse, nothing at all.
The big advantage of assets is flexibility. Sadly, you can’t predict every need that might arise. What if you need major medical work? Emergency home repairs after a storm? Vehicle repairs to keep your only vehicle running?
If all your money is tied up in stockpiled beans and rice, you’re in trouble. But if you have gold or silver or other hard assets, you can potentially trade it for cash (whatever it’s worth at the time) or services to handle unexpected situations. Assets give you options that physical supplies can’t.
Bitcoin adds another layer to this thinking. It’s portable, divisible, and can’t be physically stolen (if you secure it properly) and the government hasn’t made it illegal. Some argue it’s the ultimate hedge against government currency manipulation; others point out that it requires infrastructure to access and use. Both are concerns, so only you can decide whether Bitcoin is worth your consideration.
The asset approach also scales better for larger amounts of wealth. For instance, you can store thousands of dollars worth of gold in a small space. Try doing that with food or water and you’ll quickly run out of room!
Why Stockpiling Gets the Edge (If You Must Choose)
Here’s the reality though. If you’re forced to pick one approach, stockpiling wins for most people.
Why? Because you’re buying items you know you’ll use. Food expires and gets consumed. Medical supplies get used. Fuel gets burned. These aren’t speculative investments. They’re necessities you’ll definitely need whether the economy crashes or not.
With assets, you’re betting that someone will want to trade with you when things get bad. But who says anyone will want your gold when they desperately need food? What good is Bitcoin if the power grid is down? Hard assets only work if there’s still some functioning economy to trade in and people willing to trade.
There’s also the knowledge factor. People understand food, water, and the other basic supplies we all need to survive. Far fewer understand precious metals markets or bitcoin storage.
When I wrote about lessons from Weimar Germany’s hyperinflation, one thing that stood out was how people with physical goods often did better than those holding financial assets. Having something real and useful trumped having something valuable on paper.
The practical reality is that most families can’t afford to do both approaches fully. If you’re choosing between a month’s worth of food or an ounce of gold, gathering food makes more sense for most people. You know you’ll eat the food, but you can’t be sure you’ll be able to trade the gold for food when you need to.
The Balanced Reality
Obviously, the best approach is doing both when possible. Having a solid foundation of supplies plus some precious metals or other assets gives you the most options. But that’s not realistic for everyone.
If you’re just starting out or working with limited resources, focus on stockpiling first. Get your basic needs covered. Build up food, water, medical supplies, and other essentials. Once you have a solid foundation, then consider adding some assets to the mix.
Think of it like building a house. You need a solid foundation before you worry about the fancy features. Your stockpile is that foundation. Assets are more like having investment property on the side.
As I’ve mentioned before, this is exactly why I prepare today. The goal isn’t to get rich or make perfect economic predictions. It’s to make sure you can handle whatever comes your way with a base level of confidence AND without panic.
For most people, that means having physical supplies you can count on, with maybe some precious metals tucked away for flexibility. It’s not the most exciting approach, but it’s the most practical one.
The bottom line is simple. Stock up on what you know you’ll need. Then, if you have extra resources, consider hard assets for the situations you can’t predict. But don’t put the cart before the horse. Take care of your basics first.
Well, what do you think? Am I missing something? Spot on? Let me know!
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