"Investing" all of your savings in silver is an absolutely terrible idea. Especially at these current prices. I don't know your financial situation. If you share some more info on your income/savings rate/assets I can help you come up with a better idea.
As a general rule of thumb, I wouldn't put more than 10% of your total net worth into gold/silver. Your first priority should be an emergency savings in cash. Next priority, make sure you are contributing to tax advantaged accounts and putting the money into funds that reflect your current age and risk tolerance. I suggest you do some serious research into personal finance before making this decision.
1) It's not a terrible idea if you think Silver is guaranteed to double over the next 5 years... I happen to think the real price of silver is around 80$ right now but it's being MASSIVELY suppressed by the central banking cartels (just look at the massive suppression over the last two business days). It's also a much safer bet to hold silver than FRNs because the FRNs are absolutely guaranteed to continue to lose significant value. I keep cash because I'm forced to keep cash but i'm investing A LOT of my money into silver.
2) The classic "no more than 10%" line has been spread by financial experts for years and years and years and I personally believe they only spin this line because precious metals are such an easy investment that they don't want the average person cutting them out of the equation by investing in it. What would be the point of having a financial adviser if the majority of your money was put into PMs? That's why they discourage investing into it...
3) The financial conditions that caused the precious metals boom of 2000-2011 are EXACTLY the same... why would anyone believe that PMs will not continue to shoot towards the moon in the next 4 years? I personally believe that QE3 will guarantee another PMs boom... QE3 is exactly why I started to research silver investing. The conditions are even worse now...
4) There's a serious physical silver shortage already happening... the central banks are being forced to suppress it's real price with silver paper certificates because once silver shoots through the moon it basically destabilizes their entire fiat money system and could bring it to the brink of collapse (Because while they hold massive gold reverses they hold almost 0 silver). The problem with them continuing to suppress this is that eventually the industrial demand will end up so great that the suppressed price will cause mining operations to operate at a loss- eventually those operations will be forced to raise the price despite what the central banks try to do. It's classic economics from Hazlitt's Economics in 1 Lesson- restrictive price controls ALWAYS cause a shortage.
5) Silver is real money, and if we truly want a monetary standard backed with real money than we need to all invest in it. Infact if every American invested into 2OZs of PHYSICAL Silver every year there would be a tremendous shortage right away and the price would boom. If everyone in America started to invest in physical silver we would almost be acting as the Hunt brothers in 1980 and the price would soar for everyone holding it. It's kind of that concept if everyone put their money into the same stock at once we'd all get rich except instead of going into a stock we're all going into a metal we could easily hide from the government.
6) As for everyone saying don't invest in the junk because it's easier to barter the ounces... ok that's technically true because you don't want to have to memorize the exact silver weight in the junk coins (and most people would have no way to believe you in a SHTF scenario) HOWEVER when we get to the point where people are bartering with silver the vast majority that knows NOTHING about PMs or Silver will feel much more comfortable buying pre 1964 coins because they were guaranteed at 90% silver at one point in time.
Just because a coin says .999silver doesn't mean it's real silver. Anyone could have put that stamp there and in a barter economy there will be massive amount of fakes going around and it could devalue the Silver OZs based on reputation alone. People will feel safer going with coins that they KNOW are 90% silver.
This is why I prefer the 90% Half Dollars because they are basically 1/3 of an OZ (32%) and that's something that could easily be bartered with and would be very damn difficult to fake. 3 half dollars = 1oz would work just as well as bartering with the 1oz and people will feel much more comfortable taking the government guaranteed coin.
