“You need more dollars to buy the same gallon of gas than you needed 10 or 20 years ago. You need more dollars to buy the same size car or basket of groceries or a two bedroom home than you needed 10 or 20 years ago. Those things didn’t get more expensive; your dollars lost their value over that time so you need more dollars to buy the same thing today. This isn’t normal or natural. In fact it’s a deliberate act by the government. In effect, they’re stealing the value of your dollars from you because they’re printing dollars like crazy.”
“These coins are yours as part of your holiday tip. But there’s a catch. They’re going to become even more valuable very soon because the government has gone mad printing money. I want you to sign a promise that if you ever decide to sell or give them away, you’ll give me the first right to buy them back before anyone else. If you don’t want to sign that promise I won’t give you the coins, just the cash.”
“Here’s a list of coin dealers in the area where you can buy old worn out coins like these. They’re called junk silver and if you say those words they’ll understand. I suggest you try to buy $100 a month of silver and more if you can. You don’t need to buy collectible coins, just junk silver. Call ahead to make sure they have some in stock because they go fast. If you have a problem finding some, stop by my office and I’ll make a few calls and locate some for you. Is that a deal?”
I'm sort of an accidental silver holder. I started acquiring silver because of a California law that charges sales tax on small bullion purchases (until recently under $1000, now under $1500). If gold was trading at $800 and I only wanted one coin, I'd take $200 in junk silver to get over the sales tax hurdle.
More recently, I've bought physical silver not just for rounding on gold, but for its own sake. Gold is fine as a store of large-denomination wealth, but it's not convenient as a medium of exchange for small transactions. Silver is both a store of wealth and a convenient medium of exchange. I wholeheartedly agree with the suggestion to buy $100 a month or more in junk silver. But if you're in California, you may need to save up $1500 and buy once a year to avoid the sales tax.
In related news, silver is blowing through $31 this morning.