There’s always something to worry about and the recent global health crisis is just one event that proved how quickly a crisis could put your currency in a nosedive.
Being left with no time to save your assets from the crash in the middle of a crisis when you need your money the most is definitely an experience worth learning a lot of lessons from.
But you don’t need to wait for the warnings nor should you watch the news anxiously.
You can act on preventive measures as early as today for the security of your family and your assets.
And if there’s one currency that can perfectly serve as your lifesaver in times of crisis, it’s not bitcoin nor paper currency.
To be frank, it’s not even gold.
Your perfect hedge against doomsday is silver.
And in this article, I’ll explain to you why.
Prevention Is Your Best Course of Action
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The next crisis is just around the corner, and you don’t need to wait for a warning sign or a prediction to dictate your next moves.
Why? Because most of these warning signs and predictions are just false alarms.
They’re all designed for the same goal; to leave you doubtful after failed predictions of a possible crisis so that you will dismiss all the warning signs including the ones that are more likely to happen.
That is why you don’t need to watch the news if it’s just crying wolf more often than not.
Let me brief you on the urgent warning signs upfront.
Signs Of A Looming Financial Crisis
Consumer Debt Continues To Rise
Since the 2008 Global Financial Crisis, the consumer debt has kept rising in the U.S. where over $4.2 trillion had been recorded last February 2020 –just in time for an approaching health crisis.
The continuous rise of consumer debt even after the occurrences of crises indicates the system’s disregard for the future.
Soon, such massive debt will demand payment, which in itself will cause a crisis that you should be prepared for.
Corporate Debt Is On Record-High
Low interest rates are enough to make corporations borrow more than what they need, and it’s not like they use the money to increase productivity, advance technology or promote business opportunities.
In reality, most of the money these corporations borrow goes into stock buybacks, executive paychecks and other compensation packages.
Without a clear sight of these corporations performing well in their respective industries, there’s no guarantee in their capability to pay once the interest rates start rising.
Big Banks Are Left With Their Lowest Record Of Capital
Left with low capital ratios, banks are certainly in a vulnerable situation once again.
This isn’t new. And we’ve come to know their strategy to stay afloat. It’s through toxic investments, just like what they did a decade ago with subprime mortgages.
This time, they got a new name for another trap. These are called NPLs or Non-Performing Loans. So, obviously, there is a familiar pattern being repeated.
The Rise Of U.S. National Debt Is Quicker Than Ever
When you compare the U.S. national debt of March 2020 to that of March 2021, the difference is a whopping 4.44 trillion U.S. dollars. In one year, the national debt skyrocketed from $23.6 trillion to $28.1 trillion. I’m pretty sure that’s alarming enough.
If you can’t see any visible sign of it slowing down, you should act just as quickly with your preventive measures.
The Global Economy Is In The Late Stage Of Its Business Cycle
Several authors and analysts suggest that we are past the expansion phase of the business cycle since 2020, and that the economy is now at the peak of its business cycle.
The late-cycle phase precedes the stage of recession. This is when investors start hedging their portfolios. And it’s one reason why precious metals are the commodities they invest in.
Major Investors Are Leaving The Stock Market
You know times are changing when you see top investors start selling their stocks.
Investors like Warren Buffett, George Soros and John Paulson had started releasing a significant portion of their shares recently.
Their investment pattern suggests that the stock market is not in its ideal state. And we know these investors act earlier for you to have enough time to follow.
People Haven’t Saved Enough For The Worst
Since the record-breaking level of consumer debt suggests that people are more geared towards borrowing rather than saving, a larger part of the population is more likely to suffer from any given crisis.
With a devaluing currency and less amount of savings that people have, not enough cash is expected to go around the economy. Months further into the crisis, everyone would turn to commodities such as precious metals as their currency. Thus, possessing one means more than just hedging your assets.
Why Silver Is Your Best Option For Survival
When it comes to precious metals, the first thing that’s more likely to enter your mind is gold.
Perhaps it’s because of gold’s quality.
But there are times when the “quality over quantity” principle doesn’t apply, and you need to be practical enough to collect more of those that deliver quantity.
Here are the reasons why silver should top the list of precious metals you’ll use to hedge your portfolio against any crisis:
Reason #1: Silver’s monetary history is as rich as gold’s
In more than 3000 prominent years of these two precious metals, silver has always been of equal importance to gold.
Not in terms of value, but of influence that it has over humans and their monetary system throughout history.
Recognized by the people of Inca Empire as “tears of the moon”, silver is both a treasure that’s precious enough to keep and a tool that’s light enough to spend.
Reason #2: It’s more affordable to collect silver
At the time of writing this article, an ounce of gold is priced at 1,774.96 USD, while an ounce of silver is priced at 26.07 USD.
Since silver is way cheaper than gold parallel to its humble value, it enables you to begin your investment in precious metals earlier than those who prefer gold as their first metal.
Thus, silver is the ideal metal for beginners as it offers the chance for them to explore the market and learn the benefits of a diversified portfolio.
Reason #3: Gold is for storage, silver is for expenditure
In Warren Buffett’s eyes, silver is shinier than gold. His preference of silver over gold stems from silver’s usefulness in the real world. That’s what you would expect from an investor who doesn’t like unproductive assets in his portfolio.
He’s famously quoted for his 1998 speech at Harvard stating that gold, “gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
When we go back to the context of surviving a crisis, Buffett’s opinion on gold makes sense. If you just want to store your metal, go for gold. But if you’re looking forward to utilizing your metal at some point, you might want to consider following the steps of Buffett.
Reason #4: Silver is safer to go around with
As mentioned from the quote in the previous reason, gold has to be guarded. Gold’s high value makes it an attractive target of thieves and robbers. You wouldn’t want to risk your life going around a crisis-ridden city with gold coins in your pocket.
With silver, it’s safer to walk around crisis-ridden streets to buy your essential needs given that the value of your cash can no longer afford products with inflated prices.
Reason #5: Silver is an indispensable metal for industrial production
Not only is silver useful as a currency, it’s also a vital element for various industries. To name a few, silver is an ingredient to the following:
- LED Chips
- RFID Chips
- Touch Screens
- Water Purification
… and the long list goes on.
There’s a tangible reason behind the demand over silver. Its value is not solely dependent on people’s trust. Nor is it just a jewelry to wear on glamorous occasions.
We use silver in our day-to-day lives through the products that contain it. So, the likelihood of a crisis won’t entirely define the performance of silver on your portfolio. With or without a crisis, your silver will maintain it’s well-performing value.
Reason #6: The volatility of precious metals are in favor of silver
The market for silver is smaller than the market for gold. This can be translated into higher volatility compared to gold. With silver’s volatility, the price would either perform at its worst or at its best.
Once a crisis hits the economy, people turn their attention to silver. With a rapidly soaring price due to growing demand, those who will find the need to obtain one will face frustration for paying a high price. While those who acted on their preventive measures early and are already considered as silver investors will be enjoying abundant returns.
You can’t utilize what’s not in your hands. So, if you’re buying silver to prepare for a crisis, it must be clear from the beginning that I’m not referring to ETFs, futures or shares. You will not be able to spend these assets on essential goods found on a local market.
Silver bullion is a physical coin or bar that you can hold using your hands. Bullion coins are made of highly-refined silver and are investment-grade by quality. The most recognized bullion coins are those that are minted by governments and possess a face value.
However, do watch out for numismatic and commemorative coins as these coins aren’t for an investor like you. These are for hobbyists and coin enthusiasts to collect.
Now, let’s see where you can buy silver and the next steps you’ll be taking moving forward.
Where Can I Buy Silver and How?
If you’re early enough to read this and have also decided early on buying silver before the recession, you’ll be in a good place. If a crisis has already been confirmed and days have passed under such a situation, it will be too late to buy silver.
You may be saved from a plunging currency if you would buy silver even at an incredibly high price, but you can no longer expect to reap the same rewards as those who were able to buy one at its earlier price.
Thus, the general rule is to act while it’s still early.
Two of your best choices for coins are the American Eagle and Canadian Maple Leaf. There are also bullion bars if you want your silver in a greater form and weight.
You can buy these coins online or through your local dealer. There are websites where you can shop for widely-recognized coins and those companies can help you get started if you consider yourself as a beginner. They will provide beginner-friendly resources and materials like this article which may serve as your first step towards an in-depth understanding of the market.
For more than 3000 years of recognition as the primary currency, silver bullion has landed on the majority of hands and pockets that formed our modern world to what it is today. Silver has helped humanity survive various crises throughout history. But crises are never similar to each other.
This time, expect that the next crisis is much more complex than the previous ones. The more our technology advances, the less number of people are left who understand such complexity. In protecting our family and our assets, we can only opt in on a currency we’ve grown to know. And that, my friend, is silver.
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Thanks for reading and have an amazing journey on your silver investment pursuits.