Economic Meltdown! - Time To Buy Gold or Silver?

If you were to ask practically anyone today, they would most probably all agree that we are currently experiencing some pretty hard times, not just here in America, but in most places around the world. Political unrest, bank failures, corporate layoffs, and high domestic unemployment seem to be the constant topics of most conversations. On top of all this, looming inflation caused by the unrestrained printing of currency, has many people nervously checking out investment potential in silver and gold. Precious metals investment can be a viable tool during hard times, but it is just one of many tools available. Before you decide to run out and spend your life savings on a few gold coins, rolls of silver, gold or silver bars, first make a plan and decide exactly what type of "investment" you are making. In quantity these items can be a possible hedge against inflation, but only in good times. However, if "crisis survival" is your goal, you must plan for a different set of circumstances. In a full crisis there won't be a bank. Currency may be worthless. There won't be any ATM's or grocery stores that still have any food remaining. We could be totally on our own for days or much longer.There are other tools such as real estate, or collectibles like rare coins or stamps, that can also be attractive to some investors, each depending upon their individual gefort level. If you choose rare coins as an investment, you should only invest in very fast moving, popular varieties that are currently active and in demand in the coin market. These coins should be undamaged, circulated Key Date coins that have been graded and authenticated by a reputable service. Such pieces should range in value between $300-$1500. Pieces that aren't rare, not currently in demand, or those valued above $1500-$2000 may prove too difficult or expensive to sell "fast" in hard times. Those individuals with resources will still buy or barter for the difficult or rare pieces, but the higher the price, the less interest or sale potential.You must remember that in times of total crisis, currencies usually fail. Failure of civil law and human morality usually follow closely behind. Your survival will then depend upon the immediate marketability of whatever you have for sale or trade. Under relatively normal circumstances, items such as stocks, bonds, mutual funds, some money market funds, antiques, and expensive jewelry can often be viable tools to individuals with large amounts of liquid cash reserves. They can afford to take chances and tend to be better suited to these more lucrative types of investments. Many of these investments, although posing a greater risk of loss, can also offer much higher potential profits, but only in situations where "sanity" is still prevailing. During "crisis", the best type of security will be limited to "portable security". This is the kind of items that you can carry with you and use for barter or trade. These, however, are not the types of investments suited to those without substantial funds who are more concerned with protecting what precious few resources they possess. Keep in mind, that in times of absolute crisis, even stores of nonperishable food and water have proven to be extremely valuable.Lets talk a little about investment, risk, and potential return. Overwhelmingly, most Americans are truly not suited for major precious metals investment. This kind of investment requires a LOT OF MONEY and the courage to take chances. Far too many Americans live "pay day to pay day". We waste money and surround ourselves with useless objects and so-called creature geforts. Most have little or no savings. By far most are too busy trying to support their families, pay the mortgage on a home that, in many cases, they really can't afford, make payments on two or more overpriced autos, and send one or more children to school or college. Many earn enough to still be able to do this, some gefortably, but most are so busy supporting their imaginary lifestyles, they don't have the funds required to sufficiently invest in precious metals. Anyone can own some precious metal, a few rolls of silver coins, or a few gold coins . . . BIG DEAL! What is this going to do for you in an emergency? Is it going to feed your family for weeks or months? Will it be able to save your life if total anarchy were to break out? NO! . . .NO! . . . NO! If this is your idea of making an investment you would be much better off going out and buying a few hand guns. If total collapse were to happen, at least a gun could protect you. If everything were to "go to hell in a handbasket", some guy with a gun will probably take your food, your water, your silver and gold, and maybe even your life! This was proven many times after Hurricane Katrina in 2005. There were numerous reports of people selling gallon bottles of drinking water or loaves of bread for as much as $100 to individuals stranded by flood waters. One elderly man, who along with his wife, was stranded on the roof of his house for two days without food or drinkable water, told how he was forced to trade his expensive Rolex wrist watch and his wife's wedding ring to a man with a boat for rescue and transport to safety. In New Orleans hundreds of homes and businesses were looted of all valuables, and several people were senselessly murdered for their jewelry or valuables by roving gangs of thugs.If you are truly interested in precious metals "investment for profit", as opposed to just playing mind games with yourself, you will probably need somewhere between Half a Million Dollars and One Million Dollars of totally expendible wealth with which to work. Keep in mind that this is Investment Capital, and like any monetary investment, it can be lost - all or part! Lets do some simple math: Lets presume that Silver is $33/oz and Gold is $1650/oz. 1) If you had $500,000 to invest and you bought silver at $33/oz you could buy about 15,000 ounces less purchase fees. If you were lucky enough that silver went up 20% in that year, you could have made a profit of $100,000, less fees. After paying these fees, along with state, federal, and social security taxes, you would be lucky to net $45,000. How long is that going to support you and your family? 2) Had you purchased gold in the same quantity, you wouldn't have fared any better. You would however have paid considerably higher fees on both ends of your investment, whereas on the silver you probably could have purchased 90% silver US coins at or below actual melt. Remember, bullion prices have historically gone down much more rapidly than they have risen.Keep in mind that both gold and silver prices at any given time are only a direct reflection of the world's state of unrest and trouble. Most people would agree that in times of international crisis, as opposed to normal times, precious metals are the ONLY real money in the world. But, try as you may, you can't eat silver or gold. If you want to have some crisis protection, put away some precious metal in the form of recognizable quantities. This means U.S. silver dimes, quarters, halves