March 25, 2014 at 12:12 pm #2494
I know there is often talk of having some physical gold on hand to use as a barter medium in a SHTF situation.
One site I read often is Fernando “Ferfal” Aguirre’s good blog “Surviving In Argentina”. He lived thru the SHTF of the Argentine economic collapse of 2001 and offers some real first person advice on how to survive in a world that is harsh.
A hint he offered about having gold on hand is not to have gold coins, like SA Kurgerans or other larger coins, but hold gold necklaces instead. As things get dicey and the authorities clamp down on grey and black market economic transactions, you may need to deal with underground cash brokers, people who trade in metals for money just to eat and buy supplies.
A one ounce coin might be worth well over a thousand dollars, trading one of those, and leaving the cash broker with that in your pocket will make you a target. Those same brokers will know thieves and criminals who will be happy for the tip of someone with cash in their pocket they can rob, with a kick back to the broker.
A one ounce necklace with 50 links can be cut up. Each link then bartered in small amounts. A person with $100 in their pocket from selling a few links their grandmother left them is less of a target than one with a $1000 in their pocket from a coin. Coins are often part of a bigger treasure and may make your home the subject of an invasion and robbery, which will probably mean the deaths of you and your family. Everyone has an older relative with a little jewelry.
Another thing, when the SHTF is not the time to introduce yourself to a broker in metals and cash. You want to meet and make friends with a few of those now. Later when the authorities try to clamp down on unregulated transfers, those brokers will be watching their backs, hesitant to take on someone who they don’t know, for fear it might be the police looking for a sting. Someone who has sold to them for several years is a known quantity.
This might mean buying gold from one broker to only turn around and sell it to another. You may lose a few dollars in the transactions but set yourself up later for when you need someone you can do business with.
Something to keep in mind.March 25, 2014 at 2:06 pm #2606
These are very good tips, and definite food for thought. Thank you for the insight!March 25, 2014 at 3:31 pm #2741
Agree. When it comes to that, if you already really want to store gold for bartering, you need to have something that is usual, and not really valuable.
What I mean instead of valuable coins you need to have cheap gold necklaces and rings.
It is much easier to find customer for 50$ ring then more valuable coins. And if you are in trouble, and need to bribe someone, you can offer “my grandmother ring” to someone, it is gonna be cheaper for you, and everybody likes gold, but not everyone know real value of some gold peace. So for most of the people golden coin is worth same like golden ring.
Everyone have “their grandmother ring”, but not too many have some rare coins.
Just have lot of cheaper golden pieces instead less (more valuable) golden pieces.March 25, 2014 at 4:41 pm #2769
I read somewhere (it may have been on Selco’s pages) that one of the best things you can have when SHTF, in addition to necessities, is a bag of gold bands. Not too fancy, just plain, and it’s less expensive to buy thin ones rather than thick. It was put just like Selco said, above, because you can wear one around at all times (instead of carrying your stash), then make it seem sentimental to you if you have to part with it for barter, to increase your advantage. Then just go home and get another gold ring for next time. That way nobody suspects you have a stash of riches, assuming you spread out your bartering. This is not an expensive stash to build up, done this way over time.March 25, 2014 at 5:40 pm #2820
This has been an interesting discussion with some great insight, but I have some questions also. It is like learning about something for the first time… you don’t know what you don’t know. I may have put the cart before the horse.
What does one do if your coin rich (not my case unfortunately) and asset poor… i.e., gold or silver rings, necklaces, etc.
How does one go about determining fair value for gold and/or silver in a SHTF scenario?
How does one know if you are actually getting real gold or silver in a bartering situation?
In one of James Wesley Rawles books he mentions cutting up coins into smaller pie shaped pieces. Any thoughts?March 25, 2014 at 8:46 pm #3053
I am not some hard believer in having lot of gold as a solutions for something when SHTF, it is my opinion based on my experience. I might be wrong for some future events.
I would choose to have gold only when I am 100% sure that everything else that I have is on full capacity (and that is almost impossible).
Of course I have gold pieces for some situations, like bribe in specific situations or similar, but I simply put more effort in having goods like food, ammo, skills etc.
Popz, in real SHTF event there is no (or in my case there was not) “fair” value of gold. Value was determined by how hard you need something, how much gold you have, what kind of trader you are dealing with, how skilled you are as atrader and similar stuff.
Of course there was some value in determining how much cans of food you can get for golden ring that worth 150$ in normal time (example) but it was fluctuating a lot.
In that time people who did that (look for gold) knew is it gold or not, i guess by the look or “stamps” on jewelery. Another reason for having simple gold jewelery instead some rare things.March 26, 2014 at 1:11 pm #3509
Thank you Selco. That does give me a lot to think about now. I should probably find out how you would test metals to verify it is actually what is claimed.
You have been the only response to my question. Is it possible to make my question it’s own topic?March 26, 2014 at 11:58 pm #3789
The thing to buy is junk metal. That is quarters and dimes dated 1964 and earlier. These are 90% silver and are real currency. A dime is 1/10th of an ounce. A quarter is 1/4 of an ounce. There are also half dollars and other amounts such as small bricks or bullion.
To check value go to internet and type in spot price silver or spot price gold. You will get the price for one ounce at that exact time and it is listed internationally. The dealers usually charge 2% over spot. Don’t know what will happen when SHTF and how things will change. This is how it is right now.
Do NOT buy through the Internet! The prices are much higher and there is a paper trail… Buy cash from a local, reputable dealer. You keep them reputable by knowing the spot price and asking how much over spot do you charge?
For gold there are 1/10th coins that can be purchased. They are the size of a dime.
We chose silver because it is used in many industries and many say it will go very high in price. There is more demand for gold but it is usually out of the normal persons price range. Gold is not used as much industrially.
Never buy coins for historical or numismatic value (collector value) that is all trash now. You are paying for the purity and weight. It should be stamped with purity and weight right on the coin or bullion. You can read articles on the net.
Stock up on items that one can barter with such as soap, candy, coffee, tea, beans, sugar, detergent, etc. This is a good article to read about The Russian financial crisis in 1998 http://en.wikipedia.org/wiki/1998_Russian_financial_crisis
One item that is always in demand especially during rough times is alcohol (the kind you drink) of any kind. In depressionary times alcohol consumption goes out the roof!
dmarieMarch 27, 2014 at 10:56 am #3980
Thank you dmarie. Definitely appreciate your input.March 27, 2014 at 11:06 am #3981
Of course Popz, feel free to make new thread about that.March 28, 2014 at 2:54 pm #4291
IMHO there is no such thing as “coin rich but asset poor”. Nor is there such a thing as “coin poor and asset poor”.
Let me explain – if you have coin of the real;m you can convert it into something else. Most folks do that reguarly by buying gas for the car or groceries for the table. If you have some money left over after meeting the necessities, start buying small amounts of “trade goods” and barter currency (gold and silver are good but there are many other possibilities). If you don’t have enough ready cash for a purchase, start putting what you do have aside until you have enough to make the purchase.
Among other things this should get you used to planning and carrying out plans. It might also get you thinking about what will be valuable when money is no longer what everybody covets. I think Selco has mentioned cigarette lighters and alcohol, as well as foodstuffs, as barter medium. I stock some MREs – not because I want to eat them **spit! hack! ** but because I’m pretty sure somebody else will want to trade what I want for one when things get bad enough.
One thing I find most folks need is experience in how to barter and how to “haggle” over prices. Go to a swap meet and watch. Then go back with something to get in mind and something to use to swap for it. Just remember that you may have to do two or three swaps to get what you want.March 28, 2014 at 3:05 pm #4305
I agree skidmark. I can’t eat gold or silver. Have been in business selling stuff to people for years and your advice to learn now to barter and swap is spot on. It is a learned skill.March 28, 2014 at 11:13 pm #4580
We have time banks springing up all over the place here. The basic idea is you trade skills. You work for the time bank and get credit hours. When you want to use someone’s services your credits are used. There are many ways to do this and locally we even have a website. If one chooses to become a member they sign up and write up the skills they are willing to trade, while also posting what they want. Apparently this is very big in Greece. Here is a video. https://www.youtube.com/watch?v=9GpyQNsoipE
Here is a clothing swap in Greece and includes more information on Time Banking. https://www.youtube.com/watch?v=dz1KQkUJPkA
We have been doing barter for years. It is easy with people that you know and want to trade services. My suggestion is to start now.
DmarieMarch 29, 2014 at 4:06 pm #4992
Hi Dmarie. Excellent idea. Will take a looksee at the videos. Already my head is spinning. Thanks again!March 30, 2014 at 11:50 am #5370
Just to pick up on a specific point, having jewellery items for bribes, remember unless you are dealing with a trained professional (with access to the correct testing equipment) most folks you are offering jewellery too will not know how authentic/valuable the piece is. For those on a very limited budget, possibly look to purchase cheaper/lower quality gold pieces, along with a plausible story, can get you out of a situation just as well as a higher value piece…
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