Gold and silver recently hit all-time highs, and I didn’t even realize they were heading towards the stratosphere. (At the time of this writing, silver is over $90 and gold is over $4600.)
I haven’t bought precious metals in years, and honestly, I’m kicking myself a bit. Like many preppers, I purchased some gold and silver years ago when prices were lower. Looking back now, I wish I’d bought more. A lot more!
But that’s the thing about precious metals. The best time to buy is always when the price was lower. My question is whether the recent record prices changes the equation for preppers or not.
I think it does.
The Precious Metals Dilemma
For those who’ve been stockpiling gold and silver for years, these record prices validate the strategy: you saw something coming (economic uncertainty, inflation concerns, geopolitical tensions) and acted on it. Your metals are worth more than ever. Congrats.
For those who haven’t started yet, the situation looks different, doesn’t it? After all, paying record prices for precious metals feels wrong, and seemingly goes against every investment instinct. Yet the reasons people buy gold and silver (protection against currency devaluation, economic collapse hedge, portable wealth) haven’t changed.
The metals are doing exactly what they’re supposed to do–they’re holding value during uncertain times. That is, safe-haven demand is driving prices up because people see storm clouds on the horizon. I’ve written before about whether rising gold prices signal worse times ahead early last year, and this latest surge suggests I was right.
(Somebody tell my wife that, please.)
What About Alternatives?
Precious metals aren’t the only option for protecting wealth or preparing for hard times. Bitcoin and cryptocurrency have become the digital alternative to gold. Some people swear by it. Others think it’s worthless without electricity and internet. Both viewpoints have merit from where I’m sitting.
While Bitcoin offers digital portability and can’t be physically confiscated, it requires infrastructure that might not exist in a serious crisis. And then there are ways the powers that be may subvert it, so who knows where crypto is really headed. But it does have advantages over precious metals.
Then there’s my favorite practical alternative, such as food, water filtration, medications, fuel, ammo, tools … the stuff most of us know we’ll need when times get tough. Besides, most physical items have immediate utility whether the economy crashes or not. And when comparing stockpiling versus hard assets for hyperinflation protection, there’s a strong case for focusing on tangible necessities above all else.
If things truly fall apart, what’s worth more than gold? How about antibiotics? Water purification. Seeds. Ammunition. Items people actually need to survive. You can’t eat gold. You can’t “drink” silver.
Everyday necessities offer value that precious metals and cyrpto can’t: usefulness now AND in the future. A stockpile of properly stored food feeds your family today and years from now. Extra medications (prescriptions, vitamins, herbals, etc.) keep you healthy. Ammo stores for years, even decades. These supplies, and dozens more like them, serve double duty in ways that precious metals never can.
The Real Value Question
Record gold and silver prices tell us something else important, too, that people are nervous and getting more so each day. They’re looking for safety, and they’re protecting their wealth against whatever comes next.
But protection takes many forms, doesn’t it? Especially when thinking as a prepper. That is, you could put some money into precious metals if you can still afford record prices, and also into supplies you’ll use regardless of what happens. And if your pockets are still flush with cash, then consider Bitcoin if you understand the technology and accept the risks.
I still believe precious metals have a place in preparedness planning. They’re portable wealth that’s held value for thousands of years. But at record highs, the opportunity cost becomes a real, current concern because that same money could buy a lot of food, medicine, and supplies that you almost assuredly use; the same can’t be said for gold, silver, or crypto.
Here’s what I know for sure: wishing I’d bought more gold years ago doesn’t help me today. What helps is making smart decisions with what I (and you) can do right now. Whether that’s precious metals, Bitcoin, physical supplies, or some combination depends on your situation, what kind of future you’re preparing for, and your risk tolerance.
Typically, the best plan is to diversify. But if you can’t do that, focus on supplies. Remember that the markets are telling us to prepare for something. How you interpret that message is up to you.
What I can’t do is fail to act.
And even if you act a decade early, it’s better than acting a day too late.
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