Not too long ago, the idea of prepping and having the tools to survive in the event of a disaster seemed pretty far-fetched.
These days, it’s wise to plan ahead, as even Chase’s CEO Jamie Dimon has made dire predictions for the coming year.
The conditions we saw at the start of the pandemic, with empty store shelves and limited supplies of necessities, are likely to return.
Liquidity in the stock and crypto markets continues to suffer while more companies announce layoffs following a year of record profits.
A Bankrate survey published in June 2024 shows that more than 56% of households cannot cover a one-time $1,000 emergency expense from their savings.
The amount of emergency savings needed by each person depends on their expenses and emergency expectations. LifeHacker recommends that you estimate a week’s worth of expenses for food, bottled water, medications, and any other necessities for your family to calculate what you might need.
Silver Prepping
Having some money saved during difficult financial times is practical and common sense. Stagnant wages and high inflation have already been making things difficult.
One of the first notions that comes to mind is having fractional silver on hand for bartering.
“Junk Silver” is the best option for prepping and is the easiest fractional silver to store at home. It’s readily available and accessible to authenticate. Most importantly, it’s affordable and accessible to make regular purchases on a budget.
The coins in everyday circulation minted before 1965 were made from 90% pure silver mixed with some copper for durability.
These coins are of little interest to most collectors since most will show some wear and tear from circulation.
Each silver half-dollar, quarter, and dime minted before 1965 has known and verifiable amounts of pure silver and a small amount of copper.
When silver was still circulating, the coin had real intrinsic value.
Buying 90% junk silver coins is the most practical way to stack fractional silver, which is hard to counterfeit and simple to authenticate.
Identifying 90% Silver Coins
Visually, you can identify junk silver by looking at the coin’s edge. Coin roll hunters often use this trick when searching through boxes of bankrolls.
Weighing the coins is also a simple method for determining genuine junk silver. You will need a quality scale that measures in troy ounces or grams.
Most kitchen and herb scales that you can find at the local gas station or from Amazon are often sufficient.
The table below shows how many grams of silver contained in each denomination of 90% junk silver:
| Denomination | Face Value | Gross Weight | ASW |
|---|---|---|---|
| Half Dollar | 50 cents | 11.34 grams | 10.206 grams (.328 ozt) |
| Quarter | 25 cents | 6.25 grams | 5.625 grams (.1808 ozt) |
| Dime | 10 cents | 2.5 grams | 2.25 grams (0.0723 ozt) |
Each $1 of face value yields approximately .715 ozt of silver. So, a $10 Face Value roll of silver quarters has roughly 7.15 troy ounces of pure silver.
Holding onto even a small stack of silver helps one understand its intrinsic value and why it has been used as real money for hundreds of years. We’ve seen in the wake of hurricanes and other natural disasters that debit cards, Apple Pay, and ATM machines don’t work when the power grid goes out.
Junk silver is the most logical starting point for financial prepping with precious metals.
- It fits all of the characteristics that are important in a SHTF scenario.
- It is naturally fractional.
- It is easy to authenticate in the field.
- It is difficult to counterfeit.
40% and 35% Silver Coins
From 1964 until 1970, the Kennedy half-dollar coin was minted with an alloy containing 40% silver. Not long ago, many investors overlooked these coins because of the reduced silver content, though 40% Kennedy half dollars can often be found with much lower premiums.
The war nickel was reformulated to an alloy containing 35% silver so that nickel could be used for the production of tanks and vehicle armor. These coins were minted from 1942 until 1945 during the height of World War II.
1 oz Silver Coins and Rounds
After building a stack of junk silver, the next most practical prepping choice is typically 1 oz silver coins, rounds, or bars. This weight is widespread and can be found in online bullion dealers, marketplaces, or local coin shops. Even Costco and Walmart are now offering silver coins.
As the recession takes hold, one-ounce silver coins and rounds have become a popular way to hold an investment in silver.
What is the difference between a coin and a round?
There is only one single characteristic that distinguishes a silver coin from a silver round.
Coins are government issued and carry the legal tender designation. This guarantees that each coin’s weight and purity are minted to the exact specifications outlined in the law.
For example, the face value on bullion coins such as the Canadian Silver Maple Leaf, is one Canadian dollar ($1 CAD). But the intrinsic value is based on the silver spot price.
Silver rounds are similar to coins in shape, composition, and dimension. They are designed to mimic the feel of coins and have a similar composition and silver purity.
The distinguishing factor is that silver rounds are produced and distributed by private mints and have no legal tender face value. One-ounce silver coins and rounds share the same intrinsic silver value.
Premiums on silver rounds are lower than coins because of their face value and because they have the backing of a trusted sovereign government.
Silver rounds from private mints will typically be less expensive than coins.