Mr. R.:
Years back a good friend – a “tech incubator” and investment banker – asked me “What would make a good, easily portable medium of exchange ?” He was referencing some WTSHTF, post apocalyptic scenario. Good question. We thought about it and came up with answers, none of which were a pretty, malleable, ductile, shiny metal.
Same with diamonds. Pretty. How do they taste when brewed up in the coffee-pot ? … oh yeah, they don’t!
Wanna barter ? You’d better be bringing something to the table that has functional value. Food. Water. Shelter. Fire. Things that go bang. Things that when fed-in make those things go bang [i.e. magazines]. Medicine. Seed. Tools. Knowledge – the ultimate tool
I understand that we’re talking about a more rounded management and market-system where a universally-accepted medium of exchange would be operative, and that many here are interested in money and gold. But discussions of precious metals seem to be the economic analogue of the “Tommy Tactical” threads. The foundation of any pyramid that would support either an individual or some aggregate of individuals will have to focus on essentials. With apologies to Mr. Maslow, gold ain’t in that bottom layer, or any of the higher ones.
I’ve got a brick of .22 and you have a gold coin. If I have enough bricks, I’ll sell. If not, that one gold coin ain’t gonna be doing it. It’ll take two, maybe three. Your stock of gold just went down in valuation by 67%. And that would be on a good day, when the marketplace is beneficent, and there’s no gangs roaming the countryside, and you’re healthy and can walk, and your boots are in good shape, and so on. Ditto with a tin of butter, coil of rope, lighter, cold-weather parka
Actually envisioning the landscape and scenarios that’ll eventuate, should inform decisions we make. I’m hoping that I never need to use my resources in a world gone kaflooey, but since it might happen, I plan for that scenario. My stewardship of family wellness and preparedness entails investments and savings, and for us gold isn’t one, nor are gold stocks, gold funds, gold futures, gold coins, promises of gold or the lure of gold. Markets move up over time, and we’ll invest, just not in gold. Not till we’re squared away with our other funds, the kids and their UTMAs, our HSA, and other more tangible and productive ventures
Yes, I like the payoffs from expendable income, and the things that money can buy. But I’m skeptical that gold holdings will serve me in the world-we-hope-never-to-see. If the SHTF (Excuse me again, Mr. Farnham – when ) gold will be of little value, and I suspect that any surviving governmental apparatus will be rounding it up along with real assets. Flash yer gold and get what you want (or) loose it (or) get incarcerated …. hmmm ? Three outcomes, two bad … hmmm ? Woody Hayes is speaking to me from the grave. In the interim, I’ll be brewing real coffee, versus virtual coffee from my envisioned precious metal asset-base. – Monsieur Anon
Letter Re: Advice on Ammunition and Precious Metals for Barter?
