When it comes to the metals debate most people identify with one of two camps, Gold Bugs or Silver Bugs.

Gold bugs say buy gold its been used as a monetary metal for over 6000 years and the price is going to explode.  Well if you take into account gold went from $640 in January 2007 to its all time high of $1260 in June 2010 and many experts are calling for it to go higher, Gold bugs might be right. This could be the best way to positively secure your retirement  On-the-other-hand, silver bugs say the price of gold is too high and silver is greatly under valued, making it the better purchase. Some silver bugs even advise to only buy pre-1964 silver coins (which are 90% silver)  to use for bartering in the event of an economic collapse. So who’s right? Where should I be putting my extra money: gold krugerrands or mercury dimes? My answer is both!

I think it is extremely short sighted to only focus on one metal over the other both have there own particular uses. Let’s take a look at bartering situation: if you needed to secure a couple bars of soap it would be more practical to count out a few walking liberty halves or mercury dimes than to try and get change for a 1/10 or a 1/4 of an ounce gold eagle. However, what if you needed something more than a few bars of soap or chicken or two? What if you needed to have your leaky roof fixed or needed to have your transmission replaced? In either instance you’d probably be better served with a couple of gold eagles or Canadian maple leafs.

Now let’s look at retirement investment. The average Joe will need anywhere from 100k to 1 million dollars to retire. Just taking into account the physical space needed to keep 1 million in “junk silver” is enough to me look to gold. Secondly but more importantly, you have to take return on investment. Over the past ten years gold as majorly out performed silver. Some speculators would assure you that silver with hit astronomical highs of $500 and beyond.  Despite their wishful thinking there really isn’t any precedent to support this conclusion.

In short,  don’t put all your eggs in one basket. Diversify and protect yourself and your investment.

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