Mr. Rawles,
I recently read your post about your attending a coin show in California. What are your recommendations for getting started in collecting a few gold coins in case the monetary system collapses (I don’t have the foggiest idea how to begin)? How much should I purchase, what types, and in what quantities? I assume that having a couple extra cases of shotgun shells and a few boxes of .22 [rimfire] rounds will also go a long way in a barter environment (not to mention a water filter or two.) Any advice or direction that you can share would be greatly appreciated! – Sean
JWR Replies: As mentioned in my novel “Patriots”, I think that common caliber ammunition is preferable to precious metals for barter. In the U.S., I recommend stocking up on extra .308, .223, 9mm, .40 S&W, .45 ACP, 12 gauge (2-3/4″ only), and .22 Long Rifle rimfire. You might also lay in a smaller supply of the two or three most popular big game hunting calibers in your region. (They do vary quite a bit. Ask at your local sporting goods store which are the most popular. Where I live, it is.30-06. But in other parts of the country it might be .30-30 or .243 Winchester. I’ve read that in Canada, New Zealand, and Australia, the venerable .303 British cartridge is still quite popular )
If you decide that you want to supplement your supply of “ballistic wampum” barterables, then I recommend buying silver rather than gold coins.Gold is just too compact a store of wealth for most barter transactions. If and when you want to buy (via barter) a gallon of kerosene, a box of ammunition, or a can of beans, then gold is inappropriate. How would someone make “change” for a transaction that is priced at 1/100th of the value of a one ounce American Eagle or one ounce Krugerrand gold coin? With a cold chisel? But pre-1965 (90% silver) dimes should work just fine. These are nice small, readily recognizable silver coins for barter. Parenthetically, as I have mentioned in the SurvivalBlog Investing sub-page, I recommend that you get your key logistics (“beans, bullets, and band-aids”) squared away before you consider investing anything extra in precious metals–either for barter or as a long term inflation hedge.