Like any investment, the key is to make sure you can truly afford it; breaking the bank on something you may not ever use is not wise.

Here are some general tips on precious metals and whether they are a good investment for use in a survival situation.

1. “If I can’t eat it, drink it, or use it to defend myself, I don’t need it.”
Precious metals have been used as a stable store of value and a medium of exchange for thousands of years. Although you cannot actually eat, drink or use it to defend yourself you can use it in barter or trade to get any potential needed items.

2. “I’ll just get stuck buying some worthless coins and never get anything out of them.”
Collectible coins, or “numismatic coins,” are like art. Their value is largely subjective. Some people might pay millions of dollars for the Mona Lisa. Personally, I wouldn’t pay 20 bucks for it!

So buy BULLION!

In 2011, silver jumped up to $40 an ounce even though the rest of the country and economy were still trying to pull themselves out of the grave. Precious metals are not only a good option for a survivalist perspective but they also help to hedge against inflation and perform well in periods of economic turmoil.

What You Need to Know for a Survivalist/SHTF Scenario

In a barter/trade situation, it’s important to remember that having different sizes and metals is always smart. Having Pre-65 junk silver is a great option, it is in smaller fractional sizes, and, because it is 90% silver (containing 10% copper.)

Silver rounds, especially in the smaller fractional sizes, is also an attractive option. And consider getting gold for some larger cost barter situations too.

With our government racking up a national debt of over 19 TRILLION dollars and climbing, it’s time to start preparing for our currency to be obsolete in SHTF scenarios…

Remember: “You won’t always know what people may need in a barter or trade situation. That’s why having a form of currency is essential!”

Investing in precious metals is a hotly debated topic – some swear by it as a hedge against a survival situation, others insist it is nice if you can afford it, but not really worth it given you may never have to use it.

What you decide should be governed by two things: What you think you may need to use it for and how realistic is that? And, can you afford an investment in precious metals that will make it worth sitting on something you may never use.

To get more advice on precious metals, please visit SHTF Dad.