I have to make a confession, and all I ask is that you don’t tell my wife.
I took advantage of the suddenly lower silver prices (it is down 10 to 12 percent since last week) and I bought $100 face value in junk silver the other day. This is more precious metal in one shot than I have bought in the past decade.
“Junk silver” is pre-1965 dimes, quarters, half-dollars and dollars, which were minted out of an alloy that is 90 percent silver and 10 percent copper. It is sometimes called “constitutional silver” or 90 percent silver. Ten rolls of quarters, 20 rolls of dimes, or any other combination of junk silver that adds up to $100 has 71.5 ounces of silver in it. That makes its melt value about $1,540. Of course, the dealers charge more than that.
As we move closer to a collapse of the dollar and the dollar-driven global financial system, my concerns have grown enough that my focus has shifted from buying brass and lead to buying silver and gold. Well, silver at least.
Will we use Silver in Barter after the SHTF?
The idea that people will use silver coins to buy and sell goods after a collapse appears to be a near-universally accepted concept. Let me remind you. it is an idea, not a fact. I have to question whether people will want to trade food for shiny bits of metal that can’t be eaten. I expect we’ll get to that once the die-off is over and the recovery has started because we will need some sort of currency, and using one that is based on precious metals makes the most sense. But don’t make the mistake of stockpiling silver instead of food, thinking that you can just use it to buy what you need. That might not happen.
People who are clued in know that a 1960 quarter is worth more than a 1990 quarter, but does the man- on-the-street have any idea? If you try to buy a gallon of gas for a silver quarter, which has a melt value of $3.85, will they laugh at you? The middle of a disaster is not really the time to explain, is it? To use silver, you need a somewhat educated trading partner, and I doubt most people alive today know the value of silver or junk silver coins.
Gold, on the other hand, is more likely to be recognized as having an inherent value, although I doubt people realize that a one-ounce gold coin is worth more than $1800.
Using my Silver
If we experience an economic collapse, this silver might be useful to make purchases while the dollar is failing. If we experience a more tradtional SHTF event, I expect to hold on to my silver until well after and use it primarily in an emergency. What constitutes an emergency? A life-threatening situation. And while that could be starvation, it could also be a medical emergency where we need to buy the services of a doctor or a bottle of antibiotics. It might also mean buying livestock to ensure we have a lasting supply of food.
Let’s assume that after the collapse, people sell a dozen eggs for a silver dime, which currently contains $1.52 worth of silver. In that case, my recent acquisition can buy me 1,000 dozen eggs, easily a ten-year supply. But if they sell for a quarter, then I can only afford 400 dozen eggs. My best bet may be to buy some chicks to produce my own eggs. So what is a good price for a hen? Maybe $3 to $5 in junk silver? I guess the market will establish itself and set the price if we reach that point.
Lead and Brass
Speaking of precious metals, I can’t help but notice that Palmetto State Armory has a 100 round box of CCI MiniMag .22LR rounds for $9.99, which is the best price I’ve seen since before Obama took office and we say ammo price shoot up. They are also selling their AAC 5.56 rounds for $7.99 a box. That’s $400 for a 1,000-round case, which is a pretty darn good price these days. Their 9mm FMJs are as low as $249 per thousand. Whether you buy from them or your favorite dealer, prices like that mean this could be a good time to stock up on these other “precious metals.”
I tend to think ammunition will have more value immediately after the SHTF than silver. If I recall correctly, it was Mel Tappan years ago who suggested .22 ammo would be “ballistic wampum” after the collapse. I expect standard NATO calibers and key hunting rounds will be worth even more than .22s.
They say you can’t eat gold and silver. You may not be able to eat your bullets, either, but they still may provide dinner.
