I really don't see what the 16 oz. of silver I have now will ever buy me even if it even does act as a currency in times of trouble. Gold is too expensive by now for anyone who is in the middle class, much less someone like me below middle class, to get into.
16 oz =~about 125~130 Gal of gasoline, or about 10 ~12 visits to the gas station depending what kind of car you drive, or about 50~60 visits to the gas station if you drive a motorcycle.
You are going to retain that purchasing power +/- a few % forever.
Opposed to dollars.... which today 16$ for example cant even buy you 4 gal of gas....
In 2007, it cost me 18$ exactly, to fill up my VW Jetta (12 Gal), today it costs me about 50$ to buy the same gas (more than double).
In 2007 Silver cost about 11 to 12 $ an oz.
I was spending on Gas 2006~2007 1.5$ a gal (about) so 1 oz of silver in 2007 got me about 8 Gal of gas.
Today that same OZ of silver buys about 7.9 Gal of Gas.
So while the price of gas rose more than DOUBLE in terms of CASH DOLLARS, Silver only lost what ? a meaningless amount of value (which could be easily dismissed as a small fluctuation...
Silver is an important "savings" tool IMO, because we live in a world of earning "negative interest" on what we perceive as capital... (our money depreciates the longer you hold it).
Thats how I look at it.
Better than saving your money in a bank @ 0%
I look at silver as my personal "savings fund", it allows me to store away and save whatever "extra" income I have and put it away for a rainy day.
Its not as easy to spend as cash, because you have to go convert it.... so you tend to leave it there and it starts to accumulate which is good....
I call it a safety net against the piggy bank effect.... where you know you have a wad of cash in the house and you have the urge to just dip into it to pay for stupid junk all the time.... (pizza/delivery food) etc..
Thats how i view it, the smart people aren't buying Gold and Silver to "get rich quick" they are buying it to combat inflation in a high inflation environment (the govt is borrowing money into existence out of control).
Another great thing about it is, as the Govt devalues our money, it has the unintended consequence of devaluing our debts (like mortgages which are fixed).
Your 1,000,000 mortgage will have the same numerical fixed "sum of debt" today as it will 20 years from now.
So if you store away 100 oz of silver, and the govt continues to print out of control.... you might very well be able one day to pay your mortgage off with that bullion and get yourself out of debt, my current strategy is to devalue all my debt (forcing banks to devalue it/reduce it) and then hopefully with a little luck, I can just sell some bullion and tell the bankers to jump off a bridge.
A friend of mine has pulled this off and managed to pay some exorbitant taxes that he owed when silver spiked to 45 an oz.