Resource Prospector In Agreement On Why Owning Silver Is Critical

Kevin McElroy, Editor of Resource Prospector is long- term bullish on PMs and commodities, but for the past 6 months he has been loading up on silver. His reasons for doing so are almost identical to mine. One reason to buy silver is that it is still cheap. Today, silver sells for under $19 an ounce. If silver catches up to its historic, inflation adjusted highs, it would sell for over $300 an ounce. Also we both believe that silver is undervalued relative to gold, and it's nowhere near its nominal highs, let alone inflation adjusted highs.


One of the primary reasons I own silver has almost nothing to do with its current valuation. Silver has more tangible benefits in the event of a total currency meltdown because of its much lower value-per-unit than gold. If hyper-inflation is in the cards, the question of how many dollars can I get for an ounce of PMs just won't matter. The better question will be: how many gallons of gasoline can I get, or how many pounds of rice, or how many cartridges of 9mm ammunition?

This is what I tell my friends and family. Tally up your living expenses (food, water, gasoline, etc.) for six months, and buy the commensurate amount of silver. In the event that the dollar implodes, your daily expenses will likely be more easily met by silver bullion than gold. A one ounce gold coin is a large amount of money, so unless you're buying food for a dozen people, it would be tough to find daily living expenses that would require gold bullion. Silver coins are much better suited to daily expenses like food and gasoline. So, I'm buying silver for the same reason. In the event that the dollars in my bank account become worthless, or near-worthless, I want to have something that I can fall back on - as an insurance policy.