Posted: 2/2/2009 8:38:08 AM EDT
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Ok, I am paranoid enough that I've pulled enough cash to "get me through" a SHTF scenerio. The problem is stuff gets worse daily. So my question is:
How do you actually use gold? Here is what I know, limited as it is. Gold futures are paper. Some foreign coins are gold. Gold nuggets exist. So, if you have gold, who would take it? I can't imagine going to the store and flipping out a Krugerrand. First, how would the guy know it was really gold? They don't have testing kits behind the counter at 7-11's. You'd have to buy exact amounts, cause I don't see them having change (pun intended). Anyone have any thoughts on this? |
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The has been discussed and discussed over in the Survival forum.
Basically, yes, there are folks who take gold and yes, the ones who do generally only take it from people they already know and trust. I used to take it at my business from regulars, for example. But buying it now and setting it aside for a rainy day it not a very good solution to preparing for that type of barter. |
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Quoted:
Ok, I am paranoid enough that I've pulled enough cash to "get me through" a SHTF scenerio. The problem is stuff gets worse daily. So my question is: How do you actually use gold? Here is what I know, limited as it is. Gold futures are paper. Some foreign coins are gold. Gold nuggets exist. So, if you have gold, who would take it? I can't imagine going to the store and flipping out a Krugerrand. First, how would the guy know it was really gold? They don't have testing kits behind the counter at 7-11's. You'd have to buy exact amounts, cause I don't see them having change (pun intended). Anyone have any thoughts on this? I think the people who buy gold do so for a SITUATION you can't imagine, not a trip to Blockbuster. From what I remember, they suggest 1/10th oz pieces, junk silver, etc. (Not a gold bug, take it for what you will). |
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Quoted:
Most cities have one or more traditional Asian jewelers who handle gold by weight and can discretely handle transactions. It's a long drive for me to get to a city that has those. I know that generally this is a "SHTF" or survival topic, but I'm seeing stuff that is bringing this to the "general topic" discussions. Maybe I should buy more tinfoil instead 
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Most pawn shops also buy and sell gold by weight.
Traditional Asian jewelers simply have thousands of years of tradition as their community's "banker", and are very atuned to the "gold-based" economy. Yes, they make a profit on every transaction. Their main advantage is utter discretion. Pawn shops handle gold by weight, and likewise make a profit on all transactions. They are more of a mixed bag so far as trustworthiness, and they are subject to a ton of paperwork documentation on transactions. It's always a good idea to make a friendly aquaintance with your local pawnbrokers –– even buy something practical there once in a while, like tools –– just to be on eyeball-to-eyeball terms whenever you might need or want to buy or sell gold. Coin and stamp dealers as well, handle gold. Some antiques dealers as well. These are just general observations from having grown up in my mom's antique business. Yes, there are a lot of people who handle gold as a matter of day to day commerce. |
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Collect old computers, the older the better.
There is gold in them. You could use old 66mhz processors as money. Old motherboards that are gold plated as money. Eventually they started using less gold on the processor pins and now no gold on the motherboard. The older the better. You will find people will give you gold or that you could spend a $1 to get an old computer at a yard sale and have maybe a gram of gold on the processor which would be worth $30 today. My wife hates me for it but I collect old PC's and rip the gold components out and stockpile them. You can even buy old CPU's from Ebay for a buck and have way more than $1 in gold. Don't tell too many people. We don't want everyone knowing you can buy Gold far cheaper than market value. |
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I'm in the coin business and it's easy to buy and sell gold now. Roosevelt banned private ownership of bullion gold in 1933 and we went off the gold standard around 1971. Gold has been, is, and always will be "money". If a SHTF scenario develops, remember that our currency is ink on paper made from 75 % cotton and 25% linen, and is merely a promise to pay via the government. Or it is electonic bits that say you have money. It is wise to have some gold put aside. Coin or bar gold will always be worth the most in relation to the actual gold content, so if you want the most for your money now, buy coin/assayed bars. Many foolish citizens do not keep currency, but instead put their money into a bank or use a credit card. The government can find out what you buy, when you buy, and how much money you have access to via your bank. They can seize or freeze your account at any time for real or imaginary reasons and you will be unable to access your funds. Roosevelt instituted a bank holiday in 1933 that prevented any bank from issuing currency to a bank customer.
A word to the wise. |
| My take is you can't eat gold. It would be nice to have around in case someone is interested. In a longer SHTF scenario, foods (especially the freeze dried stuff) , medicine, fuel and possibly ammo would all be much better barter items. In a short term situation then gold would probably do pretty good. Just my two cents. |
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Quoted:
My take is you can't eat gold. It would be nice to have around in case someone is interested. In a longer SHTF scenario, foods (especially the freeze dried stuff) , medicine, fuel and possibly ammo would all be much better barter items. In a short term situation then gold would probably do pretty good. Just my two cents. Just like over on the Survival Forum, this only applies to a certain extent. My dentist has more food than he will ever need. Same with guns and ammo. But he'd probably take gold if I needed his services (and he's said as much), much as I would for mine since a guy with some food isn't offering me anything I don't already have covered. Gold isn't the answer, by any stretch. But once you've covered the basics to a solid level of prep, a lot of survival-oriented folks add it in. |
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This has been discussed alot in the survival forum.
The consensus seemed to be that owning gold is a good long term investment/hedge against inflation, but in a real world SHTF situation how would you go about using it to pay for basic items? Sure if you wanted to buy large items it might work but most people are not gold experts and honestly are not going to take some shiny metal from someone they don't really know. If you needed 5 pounds of sugar how would you pay for it with gold? How would you buy milk from the farm near you with gold bullion? Many of the survival guys say it is better to have ammunition, liquor, bulk food stuffs like rice or wheat, etc. to barter with. For the record I am NOT saying owning gold is a bad idea....I absolutely wish I had gold bars in my safe at home rather than the bytes of data that my banks computer says I have in my savings account! |
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i look to gold not as a shtf currency but rather for it's ultimate attribute as an easily transportable store of wealth.
as a safeguard; not as an investment, not as a currency. picture being a successful jewish businessman in warsaw as the wermacht closes in... gold and diamonds in your waistband, a backpack full of food, grab the family and GTFO with at least some of your hard earned wealth intact. my philosiphy; don't put any money into physical gold that you can't afford to leave there for the rest of your life. for short term shtf currency i look more towards junk silver, cigars, booze, and of course the biggie is bartered services. make sure you own all the tools for whatever trade you are skilled in. |