Bartering With Precious Metals

Discussion in 'Blogs' started by The Expendable, Jun 5, 2009.

  1. The Expendable

    The Expendable Bread and Circus Master

    I've been reading different advice about bartering, and I've reached a couple of conclusions. A lot of people think that gold is the end-all bartering metal. Here's my problem with gold as a bartering tool... The small denominations that would be useful to barter for everyday items are tiny. I think that most of the individuals looking to barter with you would be leery of accepting such tiny coins or bullion. Plus, if they are not familiar with the denominations, they may not trust it as being real. The same goes for foreign coins or commemorative coins. And what are you going to do, trade a $50 gold American Eagle for half a dozen MRE's? You'd have to be pretty hungry to make such a trade.

    Thinking about some of the other metals? How about platinum? Worth it's weight in gold, and then some. As of this writing there is a "1988 Platinum China 1 Oz Panda Proof Coin" with a "buy it now" price of $2688. It's a beautiful coin, but do you think that Bubba Joe out in the sticks would take in trade for a couple of chickens? Not likely. In fact, if you make the offer you'd likely get shot! It's a beautiful coin, but face it, it looks like a chrome plated souvenir coin from the Orange Chicken kid's meal at Panda Express!

    Maybe you'd like to trade something a little more exotic? How about palladium? Good luck with that. Bubba Joe probably hasn't ever even heard of palladium!

    When you buy collectible coins (mint, uncirculated, rare) you pay a lot more than the value of the metal content. You pay for the collectability of the coin. I have heard people say that silver is not valuable enough of a commodity to barter with, but I disagree. When I buy coins to save for bartering, I primarily buy the junk silver coins. I don't care if they're worn or pitted, as long as you can tell what they are. They are fairly cheap (lately they've been selling for about $15 - 17 per dollar face value) so they're easy to stock up a little at a time.

    I'm not saying this should be all you save. In fact, non-monetary items can be used for bartering as well. When a lot of people think about stocking up for a SHTF situation, they think in terms of food, water and ammo. A lot of people forget about the everyday niceties that we take for granted. Things like deodorant, toilet paper, toothpaste, soap, hand sanitizer... these are something that should be stocked up on, not only for your own use, but to be used as bartering tools.

    Don't get locked into a gold mindset. When considering bartering items to stock up on, think small... small denominations of silver coins.

    Just my two (copper) cents worth.
  2. E.L.

    E.L. Moderator of Lead Moderator Emeritus Founding Member

    I agree, I think silver will have a lot more use in that type of society. I think the gold is more useful during times of recession, and severe economic times. As the dollar drops, gold and silver will rise. The precious metals will always be worth something on the market even when the paper money is worth as much as toiler paper. There becomes a point though when food, water, ammo and the other bare essentials will be worth way more than any precious metal. Stocking up in items that you will naturally use is a good idea, if nothing happens then fine, the products get used sooner or later. Now, where can I find tooth paste by the case.........?
  3. The Expendable

    The Expendable Bread and Circus Master

    E.L., you're right. Those consumable items will be worth their weight in gold! Even though I have been buying a little silver, it's at the bottom of my list as far as what needs to be stockpiled.
  4. melbo

    melbo Hunter Gatherer Administrator Founding Member

    I just stockpile everything... covers all my bases

    Good read
  5. survival seeds

    survival seeds Monkey++

    Reading your options, They all sound good. I am learning.
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