Looking for the best tangible assets to stockpile or hoard in a case of a depression or financial crisis? Then read on for the Antique Sage’s unique opinion!
Pre-1965 U.S. 90% Junk Silver Coins
Pre-1965 U.S. junk silver coinage is a staple of the prepping industry, and with good reason. If you’re worried that a massive depression will crash the economy, then this is one of the best physical assets to own.
Until 1964, all circulating U.S. dimes, quarters and half dollars were minted from 90% silver and 10% copper. Starting in 1965, the U.S. Mint switched over to a copper-nickel sandwich composition, which has little intrinsic value. This is the same base-metal alloy that is still in use today for these coins.
Each $1 face value of circulated U.S. junk silver coins contain approximately 0.715 troy ounces of pure silver, which is worth around $11.50 with silver trading at just over $16 a troy ounce. Because of their silver content, pre-1965 silver coins offer a hedge against not only inflation, but also economic hard times.
90% junk silver would be incredibly useful in a depression because it is widely recognized and accepted by the public. It would be perfect for medium-sized transactions – anywhere from just a few dollars to several hundred dollars – in any situation where physical cash is either unavailable or unacceptable. And because these old coins are solid silver, no person in their right mind would refuse them.
As an added bonus, it is easy to buy and stockpile 90% junk silver in any quantity you desire, from just a few coins, to $5 or $10 face value rolls, to massive $500 or $1,000 face value bags.
Bottles of Hard Liquor
Liquor is one of the more overlooked physical assets that would prove quite useful in hard times. If you really believe that a severe economic depression is coming, then stockpiling a case or two of your favorite hard liquor might be a good choice.
An unopened bottle of hard liquor will keep for several decades if stored in a cool, dark place. This applies to pretty much any distilled liquor with a high alcohol content, including whiskey, vodka, rum, bourbon, gin, tequila, and brandy, to name just a few. Of course, all bets are off if you open a bottle, so no sampling the goods unless you intend to finish the entire thing!
Stashing liquid physical assets of this nature would confer three major benefits.
First, if the economy ever implodes, good quality hard liquor would be in high demand, making it easy to trade for other necessities. If you need a neighbor, friend or acquaintance to do a favor for you, nothing would grease the gears of commerce quite like a bottle of fine scotch.
Second, any suitably high-proof liquor could be used as a convenient disinfectant in a pinch, which may be important if medical supplies are ever hard to find. I know this seems insanely improbable right now, but just ask any Venezuelan about the unpleasant things that can happen during a severe economic dislocation.
And finally, regardless of whether the apocalypse arrives on schedule or not, you can always sit down with a bottle from your secret stash and enjoy a stiff glass or two!
Pre-1982 U.S. Copper Pennies
Pre-1982 copper pennies might seem like an odd physical asset to squirrel away, but in the context of a severe depression, they make a lot of sense. Due to their copper content, they have a definitive, easily calculated intrinsic value. Furthermore, they are not only instantly recognizable, but also readily available (at least for people in the United States).
Most people don’t realize that pennies in the United States are no longer made from copper. In fact, they haven’t been made from copper since 1982. That was the year that the composition of the lowly cent was switched over from a traditional 95% copper/5% zinc alloy to a debased, copper-plated zinc core.
It takes about 154 circulated pre-1982 pennies to equal one pound, but copper currently trades for around $2.80 a pound on the commodities market. This means that each roll of copper pennies (with a face value of $0.50) has a bullion value of close to $1!
Old copper pennies would be perfect for micro-transactions in a financially chaotic world. It would be superbly easy to slip someone a roll or two of copper pennies in payment for a much-needed good or service.
But best of all, pre-1982 copper pennies can still be found in circulation. So if you are enterprising and have the time, you can sort through your spare change and pick them out. Keep this up for 6 months or a year and you will have yourself a considerable penny hoard – one that will be worth more than its face value! Of course, if you don’t have the time to sort through loose change, you can always buy pre-sorted pennies from an e-commerce platform like eBay.
If you want to learn more about pre-1982 copper pennies, I suggest you read my recent article titled “5 Odd Investments for the Stock Market Skeptic under $100“.
Physical Cash
In a depression, cash is king. Out of all the physical assets you could possibly stockpile in preparation for a systematic financial emergency, cash is probably the best.
Just think. A well-placed $20, $50 or $100 bill can emphasize the seriousness of your intention far better than any credit or debit card.
Cash, of course, is accepted everywhere in practically all situations. Furthermore, physical currency can provide you with rare opportunities that no other form of payment can.
For example, I recently went to a garage sale where I purchased a set of sterling silver flatware worth $300 for just $110 in cash. But if I hadn’t shown up with a stack of $20 bills in my wallet, I never could have closed the deal.
In addition, in a truly widespread economic collapse, normal payment methods might not even be operational. Credit and debit cards are reliant on monolithic payment networks run by Visa, MasterCard, American Express and Discover. If these ever go dark for whatever reason (even temporarily), your credit card is an insignificant, useless wafer of plastic. Oh, and in this scenario, you can forget trying to buy anything online because there would be no way to pay for it!
Euphemistically-named “bank holidays” are another pitfall to consider in the context of a financial crisis. During a bank holiday, the banking system closes while the government tries to sort through the financial wreckage. But during this time, depositors do not have access to ACH and wire transfers, and only have very limited access to ATMs.
Basically, if you don’t already have a sizable stash of physical cash on hand before a bank holiday happens, you are out of luck. So start stacking those C-notes today, while you still can!
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