Some of you may heard that I needed to leave town for a family emergency. It's two days until pay day, supporting 7 people on one pay check doesn't leave much in reserve. How can i convert some of my preps into fiat currency so that i can purchase fuel and lodging for a 1500 mile road trip? Well, canned tomatoes aren't going to work, ditto with bullets, I guess someone would buy my old pickup but I need Paper dollars now, not a couple of days. but by golly, silver is money. I grab 30 ounces of silver rounds, head to the coin store (I could also have hit the pawn shop or maybe the cash for gold strip mall). 30 minutes later I've got a little over 800 in my pocket, go to the bank grab the available 250 FRN's and i'm on the road with enough to cover expenses for the trip and 6 days out of town. Now my PM reserves are gone, but at least I could be there for my family in their time of need. Long Live Real Money.
Sounds like your PMs did 'zactly what they were s'posed to.......serve as a store of wealth until really needed. I bet not only you are glad for that, but I bet your family is happier than you. Well done! Kajun
PMs are a commodity whose value currently varies due to daily demand in the world market. Anything of value can be used as an exchange medium aka money, all you need is an exchange rate and a purchaser.
.... and the manipulation of the market by banks, governments and those that want to see low commodity prices. Anyway, PM's are nearly liquid. Other items, not so much. PM's are great way to hedge against inflation, unforeseen situation and during times of instability. I.E. Pre-shtf. Post, then you are probably better off with other barter items (if it's truly the SHTF). The PM's did exactly what they were intended to do. Provide a means of getting what i needed at the time i needed it. Glad I had them. It's going to be a while before i can afford to resupply though.
Money has to have several qualities in order to BE money. A medium of exchange is but one.....Easily recognized, divisible units, and a STORE OF VALUE are the other properties of money. Paper money meets all but that last property. Paper money is a currency, a short term ( and getting shorter ) medium of exchange, but it is NOT money.....it fails miserably as a store of value......and thus, is NOT "money".
Yes and that is why the part you left of my post out fills the bill "all you need is an exchange rate and a purchaser" exchange rate is the divisor and purchaser/receiver decides the store of value, be it days or minutes or seconds and that is the value set at that point by that receiver. Call it what you want. YMMV Read more: http://www.survivalmonkey.com/threads/are-pms-money.34013/#ixzz20GkLtimE
I picked up a couple dollars per ounce. Avg was 25 sold for 27. way better than putting 750 in the bank or squirreling away at home. Yes Silver is Money no matter what others believe.
Well the dollar price fluctuates daily against any number of currencies, people buy and sell contracts on it. So it's a commodity too. But to me, the ability to print FRNs on a whim is asking for trouble. Give me an asset backed sec... scratch that, give me the asset and I'll give you the FRNs or what ever fiat currency you want. Paper money isn't worth the paper it isn't printed on.
