Best long term strategy is to diversify between PMs and bitcoin.
Many posts have mentioned these points already, but I love silver and so wrote my feelings on the matter:
Silver is undervaluedI think silver is undervalued at the moment.
SILVER:Price per Oz of metal: $ 22
Total refined metal on planet: 45 BILLION Oz
Total market cap: $ 990 BILION
GOLD:Price per Oz of metal: $ 1300
Total refined metal on planet: 4.5 BILLION Oz
Total market cap: $5850 BILLION
Why is it undervalued?Reason being is because gold is currently mainly used for long term wealth storage. Whales deal in gold, the physical size of silver makes it more expensive to store when dealing in Billions of dollars worth.
Silver market currently has more industrial weighting.
Should the shit hit the fan then PMs will probably be used instead of cash, in that case silver price will increase (relative to gold) due to it's more useful and safer smaller denomination.
Silver is more fungible (easier to arrange a transaction with) than gold:
X = Paranoia level of person receiving 1Oz gold in a trade and giving considerable silver change.
Y = Paranoia level of person receiving 1Oz silver in a trade and giving smaller silver as change.
X > Y
What does this mean for the future of Silver?Given its higher fungibility, we would probably see the gold/silver price change like:
(now) --> gold/silver = 0.017 ~= 2%
(shit hits fan) --> gold/silver ~= 0.1 ~= 10%
If a large gold holder converted all their holdings to all silver just before the shit hits the fan then they would be sitting pretty. And soon be holding much more gold after operating as a silver/gold changer. The initial flurry of changing would yield the highest % profit per week for their entire life.
It would be a Ferengi's wet dream.
What if the shit never hits the fan?There is shit in the air, it's not hit the fan yet, but many can smell it.
The Silver price will still probably rise as more minnows realise the hedging benefits of PMs.
In short the impetus that drives you to buy some silver rounds will also be driving others.
Oh and you will be holding a beautiful coin.