I don't understand the value of precious metals ... (natural, bullets, prices)
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Well, to a certain extent you can barter on a small scale ....... but anything bigger and steadier like wages for a job probably won't work that way. Nobody would want a crate of apples every week from an employer in return for the hard work of mining, refining, and shaping cast iron into skillets or whatever. They want some steady income that can be used to buy anything they need, a good medium of exchange. If paper money is still around but unstable such as hyperinflation, one could sell a bit of gold each day to get the paper money at that day's rate, thus avoiding paying large amounts of metal for a can of peaches or whatever.
It's important to realize that it is unlikely civilization will crash back to the Stone Age, where money and even gold have no value, and people live by hunting and gathering. If you anticipate a crash that deep, you might want to invest in primitive survival lessons such as those offered by Cody Lundin.
That depends, Roman Soldiers at one time were paid in Salt, Latin word Salis, where we get our word salary.
At times, high carbon steel was difficult to make and rarity but highly prized for weapons and tools which made it worth more by weight than gold.
It's always supply and demand. When times are lean and people need food above all else, gold isn't as valuable, but when times are good and people have disposable income, gold, diamonds and other ornimental materials are worth more.
Most cultures since the start of permanent settlements and civilization needed an agreed upon medium of exchange to purchase not only durable goods and food from the producers, but for wages as well.
During the Dark Ages in Europe at the height of the Viking raids, sometimes the entire silver production of a country would go to pay off the Vikings as extortion money to keep them from attacking. There would be no money at all in the kingdom, but people still survived by barter.
I agree with the second part of the above post as I don't see things going back to the stone age either, but I would probably pick another instructor than the barefoot hippy or someone not as concerned with "love pixie dust" .....
Les Stroud for instance would be a good choice,
Last edited by MTSilvertip; 11-28-2014 at 08:20 AM..
Here is a better example. If you want to buy 40 acres of land, you will be better off making your offers priced in gold than in paper currency. There is a gas station in Washington State selling gas for 29 cents a gallon payable in pre-64 dimes quarters and halves,
In 1914 you could buy a cow with a 20 dollar gold piece. Today you can buy a cow with that same 20 gold piece. A 20 dollar bill won't get you very far down the meat counter. So what has changed? The real values of the cow and gold have not change. The value of our currency has changed.
Inflation is a tax and it is intentional. It is controlled. It is not understood by the average citizen.
Some definite good points and further explanation on the value of gold/silver. Again, what does PM buy you/continue to buy you, especially versus dollars whose value is diluted by inflation from near unlimited number of dollars being printed?
openmike understands:
"Precious metals can be used as a bargining chip or bartering tool for the "real valued" item .......food!"
Quite correct as far as that goes, but take it step further. What do you need to make food? Land, seeds and water. Those who have those things well be well off IF they can keep them.
I love this thread and the posts within it. Some people have really thought things through.
I was a precious metal investor until I learned that the value is 100% manipulated by the powers that be just like the value of any company stock. Really look at who owns the most precious metals and they are in fact the ones running those markets (and they have vested interest in getting more and more people to buy into them; meanwhile they buy low and sell high using their leverage completely manipulating the system).
I suspect paper money and silver/gold will have the same value as any currency of the future... in fact we know it will ALL move to electronic currency eventually anyway. When TSHTF happens (if the powers that be let it happen you can bet there will be an agenda at hand), don't be fooled into believing your small piles of shiny metal will mean crap to anyone... it won't, it will be taken away. Everyone will be rounded up into organized/governed camps one way or another and a new government will be established. Everyone will be likely starting from scratch if it comes to this and of course practical skills and knowledge will be the currency most in need.
The best way to live life right now pre-TSHTF is not to worry too much about gold and silver. The silver market was revealed to be rigged and of course the gold market is rigged as well too. Likewise I wouldn't concern yourself too much with stocks as there will always be periodic "adjustments" with which you will have no warning and your savings will be literally pilfered by the powers that be anyway. Just live your life folks... live it aware that you are probably being watched, tracked, and manipulated as a caged animal for the explicit purpose of turning your lifetime's energy into someone else's profit. Part of that manipulation appears to be to assign value to nonsensical things such as pieces of paper or shiny metal. If you are aware, then you use that knowledge to just take advantage of the situation and game it so that you can live the best life possible.
I would say that the deciding factor would be what type of SHTF scenario we are talking about.
Scenario #1: The government collapses and takes the economy down with it. There are no more power grids, shipments into or out of ports or police forces. Your precious metals may be worth something during this scenario, but I would also think other items would be worth as much or more to people trying to survive without the water, food, heat and shelter they are accustomed to.
Scenario #2: We get hit by a mutated virus that sickens and kills 60% or more of the general population. I believe that your precious metals would be worth next-to-nothing in this scenario. Again, I think other items could be more valuable than gold or silver.
A couple of the examples given in previous posts talk about trading in precious metals for cash in modern times. Yes, you can make some good money if you have the gold or silver to sell, if the economy supports it, and if there are places that will give you cash for it. Take away the last two of these, because remember, we are talking a SHTF scenario, and you may have some very heavy, very pretty paper weights on your hands that no one wants because they serve no practical use (they can't be burned, eaten, turned into weapons, etc...).
Gold has always been scare and represented value. Apples rot eventually anyway .If your married or have a girl friend ask her why she values a diamond ring and diamonds are common.
Why do people say to have some silver around (and gold, if you can afford it) in a SHTF scenario?
Why would I want to trade you a case or a can of green beans for a roll of silver dimes or silver dollars. I can't eat the silver, I can't protect myself with it, I can't use it to build a fire, ad nauseam. Why would anyone trade something of practical value for a small piece of metal? It's portable, so it has that going for it. It's much easier to carry 24 coins than 24 cans of vegetables, but I still go back to "why?" If I take silver in trade, I need to find someone else who will take my silver and give me a bag of apples. I don't get it. What am I missing?
I have a rather large amount of .22 Long Rifle ammunition stockpiled. I shoot around 40,000 rounds a year but in a SHTF situation I doubt if I would use more than 300 to 500 rounds a year to put meat on the table. I think it would be better than Gold or Silver to barter with. However you would have to be very careful in WHO you traded Ammo with. Salt might be a better Barter item. Rock Salt is dirt cheap and could be used for food preservation with no problem. Maybe 50 # of Iodized for the table. Lot of things appeal more to me than Gold or Silver.
GL2
We'll forget about paper money for a minute and focus on gold. Let us not forget that something is only worth what somebody else will pay for it. So... Why does an ounce of shiny metal command more wealth than an entire week's groceries?
Natural diamonds are also shiny baubles that take nature millions of years to create. However, both gold and diamonds are plentiful enough that every married couple in the world have rings of varying size and weight that incorporate these rocks and minerals as a symbol of their unity. Yet, if all the diamonds held by De Beers were released on the market tomorrow, they would suddenly become worthless. Aside from the aesthetic value of either, what makes them worth anything more than a band of polished copper or quartz crystal? Again, it is due to an artificial value that was placed on them eons ago by primitive man who's ruling class prized them for their rarity and/or ritual (or religious) significance. Today, man does not believe such foolishness such as their "gods" have gold for skin (as the ancient Egyptians did), nor does anyone with an IQ higher than a golf shoe equate flaunting a heavy chain of shiny yellow metal makes you any more valuable to society than a man who does not display such vulgar symbols of wealth.
In a SHTF scenario, your gold is worthless to me. If you are looking to trade, I would want food, bullets and gasoline long before some shiny metal that has no practical use to me whatsoever. While you may find some people that do feel your gold would still hold wealth, I doubt many people would be any more interested in it than they would a chest full of shiny beads of glass, and they certainly wouldn't be lining up to trade you for guns, land, bullets, food or fuel as fast as the Indians did 300 years ago.
Quote:
Originally Posted by texdav
If your married or have a girl friend ask her why she values a diamond ring and diamonds are common.
My wife values her engagement and wedding ring for the symbolism they represent, not the materials they are made from. I wouldn't be married to her if she looked at it any differently.
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