The U.S. mint no longer uses precious metals in the production of our coins.Where do you buy physical Gold and Silver? Coin dealers only? Can you buy straight from the US Mint?
The problem with that scenario is that the barter system rarely works well for long. The barter system only works when the two people involved have precisely the right quantity of specific items that the other wants. Suppose someone comes to you wanting to trade ammunition for aspirin. You, being the smart cookie that you are, stockpiled both aspirin and ammunition. Your root cellar has 15,000 rounds of ammunition. You probably aren't going to want more ammunition, especially since the ammo he's got isn't the right caliber for your guns. What you really need is some clothes for your three year-old. You have something he wants but he has nothing you want. The barter system doesn't work in that scenario.However, if we're talking about more than just a down-turn in society... wouldn't other things have far greater inherent value? Like food, clothing, shelter, medicine, etc?
Both. I figure when 'it' happens, it won't be overnight. It may well be a short time however. If, for instance, the current situation keeps getting worse, a store of gold/silver would help you get through it. You currently probably can't barter for your mortgage, electric bill or gas at the quickymart. I don't have a box to check on my mortgage statement for the amount of gold I am sending them this month. Unca sugar's response has been to pump HUGH amounts of bogus cash into the economy. That WILL lead to massive inflation and gold/silver will grow in value against a paper 'dollar.' If, however, it keeps getting worse, at some point money won't be of much use, no one may be using 'dollars' and barter will take over. Then your stores will be of greater value to you.So, is the buying of gold and silver intended as a short-term store of wealth while the economy flounders, or are you counting on using it as de-facto currency?
Fachento
I (politely) disagree - I think the barter system is less bound to "exact" quantities of what either party wants than a system based on currency, even currency made from pure precious metals. Even the value of a gold coin in that same situation would vary, depending on who you asked. So, maybe the person who has ammunition and wants aspirin (this is starting to sound like my Economics Professor) doesn't have clothes for an infant, but has 1 dozen mason jars of canned peaches instead. Suppose you know a tailor who has been looking for canned peaches. I believe that such flexibility is more likely to be found in a bartering situation.The problem with that scenario is that the barter system rarely works well for long. The barter system only works when the two people involved have precisely the right quantity of specific items that the other wants.
I've seen these, and similar 'coins' of this type. All have been the right weight/purity. I think if you want to have and use them, great, but I would not pay a higher premium for them than another recognized 'round' from someone else, unless you are either supporting the cause or want to collect them. Bullion is one thing, numismatics and collectables are another.How do you know that the purity is good? Never heard of those coins. coinguy do you know about them?
Gold will only retain it's allure and value as long as someone sees value in having it. In some circumstances, I could imagine a gold "round" not being worth a good pair of work boots or a mule. If someone is starving it might not be worth a loaf of bread. It all depends on circumstances.The problem with that scenario is that the barter system rarely works well for long. The barter system only works when the two people involved have precisely the right quantity of specific items that the other wants. Suppose someone comes to you wanting to trade ammunition for aspirin. You, being the smart cookie that you are, stockpiled both aspirin and ammunition. Your root cellar has 15,000 rounds of ammunition. You probably aren't going to want more ammunition, especially since the ammo he's got isn't the right caliber for your guns. What you really need is some clothes for your three year-old. You have something he wants but he has nothing you want. The barter system doesn't work in that scenario.
This is why things that have intrinsic value (but little practical usefulness) like precious metals make such useful trade medium. In the above scenario, instead of bartering, you can sell him some aspirin for 0.05 Troy ounces of .999 sterling silver, take that silver to someone who makes children's clothes and use it to buy what you need.
Actually, precious metals will always retain value. It is commodities that have no value other than what people place on them. You may not find someone with whom to buy or sell, but the value of the metal is in its rarity. How much value depends on a number of factors but no society that I have ever heard of considered gold or silver to be worthless.Gold will only retain it's allure and value as long as someone sees value in having it.