The idea of an economic collapse or a major disaster is not a new one, especially for those who have concerns for when SHTF happens. The survival community often considers various strategies and tools to ensure their survival in the event of a major event – from stockpiling food, water, and other essentials, to learning outdoor skills such as hunting, farming, and fishing. However, one aspect that is often overlooked is the value of precious metals and gemstones. This got us thinking, “Should precious metals and other economic safeguards be a part of your SHTF plans?”
Note: Nothing contained in this article shall constitute, or should be construed as, constituting investment advice or a recommendation by any author or Survival Dispatch. Any investment or financial decision-making should be done with an appropriately certified professional in accordance with governing law.
The Definition of Precious Metals and Gemstones
Gold and silver are precious metals, while diamonds, rubies, sapphires, and other gemstones are known as precious gemstones. They are considered precious because they are rare and valuable, and they hold value beyond their beauty. People have used precious metals and gemstones as a form of currency for centuries, and in times of economic crisis, they retain their value.
1. Tangible Assets that Hold Value
One of the main reasons why Preppers should consider holding funds in precious metals or gemstones is that they are tangible assets that hold value. Unlike paper currencies or stocks, precious metals and gemstones do not lose value suddenly overnight. Even in a recession or economic collapse, these materials will still retain some worth. They are valuable tools to have, especially when the typical methods of buying and selling become difficult or impossible to execute. In addition, precious materials are more easily convertible. A piece of silver is transferable into most currencies around the world, a local paper currency might not.
2. Protecting Purchasing Power
Another major benefit of holding funds in gold, silver, or other materials is that it can help protect purchasing power. Inflation is a common problem during economic downturns, and it can lead to the devaluation of paper currency. The value of precious metals and gemstones
tends to rise along with inflation, ensuring that Preppers’ purchasing and bartering power stays protected. Because these materials hold their value during inflation, Preppers can use them as a hedge against the risk of currency devaluation.
3. Portable and Easily Liquidated
Another reason why precious metals and gemstones are valuable tools for Preppers is their portability and ease of liquidation. Unlike other forms of tangible assets, precious metals and gemstones are small, lightweight, and easily portable. In an SHTF event, you can store them in a safe location and bring them with them in case they need to leave their home in a hurry. Additionally, in case of emergencies, these materials can be quickly and easily liquidated, providing cash to help during survival efforts.
4. The Importance of Diversification
Diversification is an important strategy for Preppers, as it helps to reduce the risk of losing everything in one asset class. Holding precious metals and gemstones is a perfect way to diversify against inflation or economic collapse. Preppers can spread their funds across different materials, increasing their chances of staying financially stable during tough times.
In summary, precious metals and gemstones are a valuable tool for preppers to hold as a hedge against economic crises, inflation, and other financial disasters. Not only are they tangible assets that hold value, but they are also portable and easily liquidated, making them an ideal way to protect purchasing power and diversify risk. While not the only strategy to consider, preppers should consider holding some of their funds in gold, silver, or other materials to ensure they have enough tools to survive a major disaster.
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