What would Silver be Worth if The Dollar Collapses?
There’s many people speculating on what silver will be priced at in USD after the dollar collapses. I’m not going to do that — I’m going to tell you what Silver will be worth, like you’re actually wondering — Spoiler alert: It’ll be worth silver, because it’s silver.
That’s not a very helpful answer now is it — The thing is, the price in dollars doesn’t matter. Silver might double in the next year in USD terms, or it could go up go up to 50x it’s current price. But that won’t change what silver is worth — which is whatever silver is worth — the price of silver — the value silver provides.
In all likelihood the price of silver will skyrocket and be able to purchase 2-3x the goods it can today, potentially quite a bit more, depending on the supply-chain constraints such an economic collapse comes with.
If I’m being honest with you, someone searching about and likely bullish on silver, other commodities such as gold or even bitcoin are likely to go up more in value than silver if the dollar collapses. Don’t go all in on silver just because you think it’s undervalued — think about what will cause it to be worth more or less in various scenarios.
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Allow me to Explain: Silver's Actual Value
Silver’s value comes from the reality that it must be mined, and that costs money. So-called “easy silver” has already been mined, so the price of mining will only go up in REAL (inflation adjusted) terms over time.
Silver is an industrial metal primarily at this stage in history, which makes it a commodity, and commodity-pricing is entirely determined on how much it costs to extract the resource and refine it into a marketable product to manufacturers, and in some cases, investors.
Will Silver Make You a ton of Money in a collapse?
In USD terms it’d go to infinity and beyond!
But in real terms, no, it’d provide modest returns — but more importantly gaurantee your purchasing power stays the same or more likely goes up quite a bit as debt-fueled bubble-prices collapse and sensible pricing returns. Due to the nature of the material, and the cost of production, the only real risk to owning gold/silver is you having to pay a vault for storing it, or have the risk of storing it on your own. It’s not realistically going to lose purchasing-power over the long-run.
If you want to make a ton off the dollar collapse you’re going to have to take on some risk — in our opinion the best way to do this would be to invest in gold or silver miners, as well as other commodity-industries such as logging (forestry) and copper mining, which are our personal favorites in the commodity-space right now.
We also personally invest a small portion of are assets in a speculation-play with cryptocurrency, predominantly bitcoin, as we believe there is a chance in a dollar-collapse scenario that it’d not only gain, but has a small chance at genuinely becoming the new reserve currency as fiat money loses faith. It also has no floor and thus can go to zero, which is why we consider it a speculative small play in our portfolio, but truthfully we believe it could go up massively in purchasing power — it’s just there’s a chance it completely evaporates as well and is a complete loss. This is why we still hold a little metals, and many miners, in our portfolios.
So What is Silver Good For?
We do not consider Silver to be an investment, but rather a hedge and safety-net. It’s what we do with the portion of our portfolio we’d like to remain in “cash” and what we do with our “emergency fund” to ensure it doesn’t evaporate in a true emergency!
As we want it as a safety net we want it physically present — because of this we buy from Silver Gold Bull which offers physical coins at the lowest prices we’ve found online (if paying in bitcoin or check), but if paying by other means they’re about the same as everyone else in our experience.
However while I buy it for a “safety net” I wouldn’t ever buy silver expecting the price to go up and you to gain purchasing power — instead I’d use it as a tool to ensure you don’t lose the money you have. If you want to gain money, opt for gold/silver miners who are leveraged and will have debt more or less wiped away in a dollar-collapse, just keep in mind that miners come with the risk of bankruptcy, improper management, and potentially inability to access funds/value for years if an economic collapse or global instability-causing event occurs.