Mr. Rawles:
Please tell me, what would be the best form to purchase gold to store, that is not a stock [or an Exchange Traded Fund]? I cashed out a penny stock that my father left me, which will cover almost one once of gold. Thanks, – Wendy H.
JWR Replies: At the present time, I don’t recommend gold for most investors. Instead, I recommend silver. The silver to gold ratio is currently around 63 to 1, which is way out of whack. It should be closer to it historic norm, which is 16-to-1. This means that gold is relatively over-valued, and silver is under-valued and has a lot of catching up to do. In my opinion, at the present time silver is far more likely to double in price than gold! Also, as I described in my novel “Patriots” (see Chapter 16, “For an Ounce of Gold”), silver is a superior choice for barter. Gold is simply too compact a form of wealth for most day-to-day barter transactions. For some advice on silver purchasing search the SurvivalBlog archives for articles with details on U.S. Pre-1965 mint date “junk” 90% silver coins. Silver dimes, quarters, and half dollars are your best bet. Also, as I’ve often been quoted, it is important to get your Beans, Bullets and Band-Aids squared away first, before considering any precious metals investing.