The high value of gold can sometimes make it less desirable than silver as a form of post-disaster currency (imagine having only $1000 bills in your billfold, and being unable to make basic purchases because so few sellers can make change). The great value that gold packs into a small space renders it much more portable and concealable, however the fact that silver can be used to make smaller day-to-day purchases makes it attractive. The reality is that metal holdings probably should consist of a mix of both metals to realize the benefits of each.
One factor to consider is that smaller gold ‘rounds’ and ‘bars’ are now available (as small as 1/10th of an ounce – which would have a value of about $130 today), making gold a little more feasible for smaller purchases (who hasn’t had grocery trips that haven’t totaled well over $130?). Another factor in favor of silver is that it has more industrial uses than gold, which means that in a post-disaster situation it may prove to be a better investment.
If you are new to buying metals – if your first experience is like mine – then you’ll walk away from the transaction not worried about the money you’ve just tied up in metals, but rather concerned about the savings that you have not “protected” from the constant corrosive effect of inflation. The feel of ‘real money’ in your hand will greatly diminish your respect for what governments today call ‘money’.
NOTE: Our book, “When There is No FEMA” (available for preview and order at http://nofema.com/), has an appendix that covers many more important aspects of buying, holding and selling precious metals.