I will NEVER forget an experience I had in then communist Poland while doing independent research, right after martial law was lifted, but there was still much oppression. There was suddenly a very large line of people going into a store. I heard someone yell : SREBRO, which means silver. The store in Krakow had somehow gotten a hold of an extra quantity of Sterling silver forks and spoons, and people were desperate to get a hold of them. Poland was and still is a top 5 worldwide silver producer, producing more than both Russia and the US. But back in the 80's it desperately needed hard currency, so almost all of it was exported. I did manage to pick up one historical silver coin while there, paid $5 for it with a US note on the street in a shady section of Warsaw in a rougher part of town across the river. It is now worth about $40. The sentimental value of it to me is greater than that.
The US is in an increasingly precarious national debt/interest payments situation and political strife, with significant danger of major instability. Do you feel that the quantity of silver and gold coins you already have in your possession is adequate for insurance purposes? IF so, then by all means go ahead and do the option trade you outlined. But if you really want that extra insurance provided by the silver ETF, don't do the option. Another possibility is sell it and instead buy some additional silver coins, while they are still extremely cheap compared to the historical average silver/gold ratio...
