Originally posted by Dbriefed
I would disagree that Gold is good for trading.
Gold is good if local currency becomes worthless, you can convert to more currency.
If you barter Gold for goods, you'll need an assayer like during the Gold rush. No one really knows how pure your alloy is. You'll end up getting
14k or 18k prices for your 22k or 24k gold. If you need food, that box of soup cans becomes more valuable than that gold coin.
Experiment: Right now, grab a unit of Gold (nuggets, coin, bar, ring, ingot) and head for the mall or supermarket. See if you get the same value of
goods as what your Gold is worth. When SHTF, the value of your Gold goes down even further.
Sorry to quote your whole post but I need to refer to all of it.
Gold is good for trading (for food and other essentials) under some circumstances. I started my post by referencing what actually took place here in
central Europe in WWII. In other words I was saying that the circumstances have to be pretty extreme.
Most people traded/bartered gold rings and similar items. Their assay value is usually marked on them. When in doubt, the black marketeer would
downgrade their value. In any case, if that trader is the only person around who can supply what the person with the gold needs, then the trader sets
the "price". A gold ring for a jar of real coffee would have been a "fair" trade, for example -- and certainly occurred.
I closed my post by pointing out that I am upping my stocks of coffee, as in extreme circumstances it can be traded for just about anything. Believe
me, people traded their jewelery for coffee or other rare items when they were planning a special occasion celebration like a wedding or a major
birthday. In a hypothetical extreme situation I wouldn't trade my coffee for gold. I'd use it to obtain other consumables we might need.
Your experiment cited at the end of your post: I agree with you 100% that right now, there is no way that you'll get full value for your gold. You
and I both know that we'd lose out, especially at a time when our money still has purchasing power. But like I said, in an extreme situation, you
don't get the full, pre-crisis value for your gold either. People didn't in WWII and they won't in the next one. But they would get
, while those with only useless paper money (and no stocks of sought-after items) would likely get virtually nothing.
Summary: we're basically on the same page here. Having only gold for trading in dire circumstances is not the ideal. It's better than nothing, but
for those with foresight it's far more astute to lay in supplies of items that people will need (and/or crave) and that will be hard to obtain.
That's what I am doing and have done for some time. I chose coffee because all our coffee in Europe has to be imported. In a major crash of the
world's economy, there will be virtually no imports, so those items will be especially sought after -- and I know from talking to people who went
through the last massive crisis here that coffee was a significant item of trade. It stores well, which is a big plus.
I'm hanging on to the relatively small amount of gold I have as it is convenient for transport and can
be traded (at extreme marked-down
value) if necessary, but consumable items with a long shelf life are far preferable. I'm also hanging on to my gold as it could be useful in future
if my teeth need more fixing. Not kidding. During WWII, my wife's grandmother had a dentist make and fit a gold tooth for her from a length of gold
necklace she supplied. By agreement, the dentist kept some of the gold as his fee... This was not unusual, and in fact under the Communist regime
here, it was typical that patients who wanted gold in dental work had to supply the gold themselves.
Yes, the experiences I mentioned in my prior post were not just plucked out of thin air. They were family and family friends.
[edit on 24/9/09 by JustMike]