Episode 7: Our Financial Priorities and Precious Metals

Welcome to another episode of the Be Prepared Channel. Today we are going to get into the topic of our financial priorities as a prepper or modern survivalist and discuss how to organize our financial decisions based on our needs as we are learning how to be prepared. I had a couple of friends ask me about this topic of precious metals so I thought this would be a good time to layout our financial priorities and the "how" of getting into precious metals.

Episode 7: Our Financial Priorities and Precious Metals:

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Precious Metals types:

• Numismatic
• Bullion

Financial priorities listed by importance:

1. Emergency Cash (at least one month in your possession)
2. Get out of debt (pick your smallest debt and pay it off, then take the free cash from that and pick the next smallest debt)
3. Basic Emergency Kit (food, water, first aid, basic supplies to get you through a reasonable amount of time)
4. Self Defense (skills, training, firearms, security, planning)

Investments (tangibles in this economy will be key, farmland, commodities, precious metals):

• Precious metals investing, recommend 10% of your regular savings into precious metals
• Shop around for the best deals, many dealers in this frantic market are very expensive and charging large mark-ups, high shipping, or tacking on high fees.
• Avoid panic buying
• Don't buy in bulk, take your time an pay attention to what the market is telling you

Fundamentals of purchasing and selling:

• Wholesale pricing
• Retail pricing

Reasonable mark-up vs rip-off:

• High demand causes price pressure and price mark-up to increase
• Gold reasonable mark-up in today's market appears to be right around $50 over spot price for a 1 oz gold coin
• Silver reasonable mark-up in today's market appears to be right around $2-$3 per ounce over spot price.
• Know what spot price is when buying. We have the Kitco web display here on the blog(on the right hand side of the page, you may have to scroll down to see it) to show you the current prices or you can go out to Kitco.com

Risks and downside:

• Due to retail mark-up of precious metals it may take some time to recoup the price spread between wholesale spot price and retail price.
• Due to the price spreads it is difficult to jump in and jump out of the market or flip due to the retail mark-up in prices.
• Prices are volatile so if you get nervous or sea sick don't what the price of metals!

Benefits of Precious Metals:

• They are liquid and can be exchanged for cash at any time.
• Good inflation hedge
• Tangible and have intrinsic value unlike paper money.
• Precious metals have survived the test of time unlike fiat currencies

Places to buy:
ebay.com
apmex.com
blanchardonline.com
gainesvillecoins.com