Nick Rokke is an analyst for The Palm Beach Daily and is a close friend of ours. In a recent article for The Palm Beach Daily, Nick discussed the value of junk silver during times of uncertainty and how you can now take advantage of some of the lowest premiums on junk silver seen in over a decade. To read more articles like this from Nick, you can subscribe to The Palm Beach Daily newsletter here.

Here's How to Make 14% Hoarding Junk Silver

By Nick Rokke

The electric grid would crash. Planes would fall out of the sky. Banks would fail. Civil wars would start. Some even believed Armageddon would ensue.

During the late 1990s, fear gripped the planet. At midnight on January 1, 2000, clocks in most computers across the world would roll over to 01/01/00.

But there was a serious problem…

Some computer programmers thought a software glitch would make the “00” in 2000 indistinguishable from the “00” in 1900.

If you’re old enough, you may recall this problem as the “Millennium” or “Y2K” bug.

Back then, to save money and memory space, computer clocks were formatted MM/DD/YY instead of MM/DD/YYYY.

Computers were invented in the mid-20th century. Some programmers worried they’d misinterpret “00” in 2000 and reset the clock to 1900… causing a worldwide network crash.

Fearing the End Times, people stocked up on precious metals.

One that did especially well during the Y2K scare was junk silver.

At the Palm Beach Research Group, we generally treat precious metals like silver as chaos hedges. They act as a form of insurance against things that could go wrong.

We’re usually willing to give up some upside on chaos hedges to protect against future market crashes.

Today, I’ll show how you can make a 14% return or more on junk silver… all while using it to hedge your portfolio.

More Than Junk

Junk silver isn’t a bag full of broken jewelry or electronic scraps.

It’s a technical term for U.S. coins minted before 1965 and composed of 90% silver. These coins include half-dollars, quarters, and dimes. And they’re legal tender.

A pre-1965 silver dime is one-tenth an ounce of silver. At today’s silver price of $16.17, that’s about $1.61 per coin. Two would buy you a loaf of bread during the apocalypse.

That’s why Y2K preppers hoarded bags of junk silver—they’d come in handy in a crisis. Their demand for coins drove the premium to 50% over the spot price of the silver.

We saw the same thing happen during the Great Recession of 2008.

And again in 2015, when Greece nearly declared bankruptcy… the Chinese stock market crashed… and the U.S. Treasury had to “allocate” silver coins to dealers.

And it will happen again.

North Korea, Iran, or a constitutional crisis in the U.S.… any of these crises could send junk silver prices higher.

But here’s the thing…

Today, you can buy junk silver for its lowest premium over spot prices in two decades.

A Rare Opportunity

Rich Checkan is President and Chief Operating Officer of Asset Strategies International. They’re the experts we go to for coins.

Rich says junk silver is at the lowest premiums he’s seen in over 20 years. But it probably won’t stay that way for long.

The markets are calm right now… So, investors don’t feel any rush to buy junk silver. And with demand low, dealers have dropped premiums to move inventory.

But as soon as investors feel trouble is on the horizon, they’ll flock to junk silver like they did in 1999, 2008, and 2015.

When they do, expect premiums to return to their old highs.

A Chaos Hedge That Pays

You might get lucky and find a dealer who’ll sell you just a few junk silver coins. But most serious hard asset brokers sell junk silver by the bag.

Bags typically hold $100 or $1,000 worth of face value coins.

A $100 bag consists of 71.5 ounces of silver. Asset Strategies sells it for $1,199 at current spot price*. That’s only a 3.5% premium* to the spot price for silver—quite the deal (and an even further discount with higher quantities).

There are two ways to make money off junk silver: 

• The obvious one is that demand drives silver prices up. I believe there’s a strong possibility of this happening. There are plenty of brewing crises in the world.
• But even if silver demand doesn’t go up, you can still make money if the junk silver premium just reverts to normal. The usual premium is around 20%. If it returns there, you’d book about 14%.

If you’re thinking about adding some silver to protect your portfolio, do it now. A 3% premium* is almost unheard of and probably won’t last long.

Just remember, silver is a chaos hedge. So, treat it as a long-term commitment.

We've seen it in the past, and we'll see it again soon—whenever there's a crisis—be it geopolitical, economic, or otherwise—investors flock to assets they can trust, like junk silver. Instead of waiting for premiums to skyrocket when chaos ensues, we urge you to act now to secure some of the lowest premiums we've seen on junk silver in roughly two decades.

Available for just Spot + 49¢ per ounce*, this could be the best deal you see on junk silver for many years. We cannot stress enough how rare a premium like this is—so, if you plan on investing in junk silver, now is the time to do so. Don't wait until something bad happens; give us a call at 800-831-0007 or email us to prepare your portfolio for the next global scare.

*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. Offer expires Friday, December 22, 2017, or while supplies last.