Hedging
the act of securing economic security for future uncertainty is an essential principle of the banking industry and one of the smart practices for preppers around the world. While economic security ranks far below food, water, safety and energy on the priority list, investing in precious metals such as platinum, gold and silver is an important strategy that could help families and communities recover from a disaster and set their future on the road to stability.
In this guide, we review some of the key steps that you need to take while attempting to purchase precious metals. Most people choose to invest in gold and silver, but platinum is a far more precious investment for two reasons:
Over 80% of the world’s platinum supply comes from South Africa, and a natural or man-made disaster would only cause the value of the metal to appreciate.
Platinum has significant industrial application and remains a good investment that can be used to generate a steady flow of cash before a crisis hits.
A Guide to Buying Platinum
In the following sections, we will learn how to buy, test and store platinum.
What to Buy:
Platinum is available for purchase as coinage or as bullion——the only two choices you should consider. The limited supply of platinum has generated a significant number of companies that deal in platinum equities that are tied into the stability of the global commodities market. A crash in the automobile industry——the world’s largest consumer of industrial platinum——could lead to a catastrophic crash in platinum prices. However, the physical metal is one of the most secure long-term investments that can help you recover from large financial losses. The first step, therefore, is to ensure that you purchase the physical commodity and avoid any market-dependent financial instruments such as derivatives or funds that are worth nothing when markets fail.
Where to Buy:
You may purchase platinum from investment banks and registered commodity traders who deal in precious metals. When you choose to buy platinum bars, it is important to remember that all bars will be engraved with the symbol of the issuing bank, the purity, weight, and industry hallmark symbols. The purest form of platinum will be marked with 0.9995, 99.95 or 999,5 to indicate 99.95% purity. Avoid traders who charge you significantly higher prices for fake “100% pure” platinum. When choosing an investment bank or trader, it is crucial to ensure that you ask for their trading permit and license to sell the metal.
Check your Product:
As a prepper, you know that checking any product that you buy is essential to protecting yourself from scams. Platinum coins are only manufactured in the United States by the Federal Mint and are issued as American Eagle coins that feature Lady Liberty on one side and a bald eagle against the rays of the sun on the other. These coins are available as one-ounce, quarter-ounce and tenth-ounce platinum coins. Bullion is available as 10-troy ounce bars or 1-kilogram bars. Once you have verified the appearance of a coin or bar, a scratch test is essential.
Testing Platinum:
Unlike silver, platinum is a hard metal that does not scratch under a fingernail. Silver bars that have been disguised to look like platinum cannot pass the scratch test. Perform the scratch test on all sides of the bar or coin until you are sure of the quality. However, the definitive test is to check for the density of platinum with a water displacement test. At 21.45 grams per cubic centimeter, platinum is denser than white gold or silver.
Storing Platinum:
Platinum does not corrode easily and may be stored in safes, preparatory underground shelters and most bunkers. During a crisis, it is important to secure all precious metals and coinage in a relatively moisture-free environment. Since you will probably use coins to barter for produce, keep your coins in an easily accessible safe while storing bullion in a vault or relatively inaccessible location. Bullion is useful as a long-term investment or as a means of generating cash in order to ensure that you are well supplied during a crisis.
Wealth preservation may not be the highest priority for preppers, but it is important to ensure that a stockpile of precious metals such as platinum keeps you financially stable in the aftermath of a disaster. In the event that the disaster passes, buying platinum bullion or coins ensures that you have a reasonable stockpile that may be used to quickly resupply your stores and keep you safe before the next crisis hits.
