Re-thinking the role of PM's post SHTF

Don't forget that you were still trying to sell PM's in a world where FIAT is still more readily recognizable as currency than PM's. It's quicker to determine the value of it and easier to use elsewhere. If someone accepted gold in a liquid fiat system that is still perceptually viable, then THEY now have to find a way to turn that into their local currency.

Put it another way.. if a widget is roughly the same as a snoogit, but widgets are the local currency, what would you accept as a daily business transaction? On the other hand, if widgets were hyper inflated, I'd be willing to bet that you could use your snoogits to buy what you need rather easily.

 

I heard that there are a lot of counter fitting going on in the PM market as well, and seeing a silly westerner trying to sell gold might have turned them off..

Like some silly westerner having a foreigner walk in and try to sell some gold, would be skepticle..

But I agree with you, be wise to spread your hedges with other barter items..

Buddy of mine has ammo he can't utilize, solely for barter purposes..

I have ammo components that I can throw together, for barter purposes.. Bought back in 08' when I cashed out some, and picked up PM's as well..

On a side note, I got fellow oilfield Indian friends there (educated here, fairly respected families there), if you ever find yourself in India, coulda helped you out through the grapevine..
Just throwing that out there as well

 

It's hard to eat PMs.
It's good to have some, but if things are really bad, they won't mean much. People will be looking for tangible items. Guns, ammo, food, shelter.

 

Next time let me know, surely there are Western Union locations in other countries.

 

90,000 of em in India

 

I'm guessing the Indian market would have been more receptive to products they are more familiar with. I imagine it would be similarly difficult to sell middle eastern Dinars in the USA.

What products did the locals over there have for sale? 1ozt bars/ingots? What brands?

 

In a post shtf world, as compared to real needs PMs aren't worth much. In ancient times, PMs were more for the "upper crust" than the rest of us.

In a short term event, Katrina etc; PMs would be valuable but highly discounted. People would probably want to see your driver's license also.

The driver's license has the potential to be the place mark. If it no longer offers recourse; PMs may lose value or become worthless at least they will to me.

 

I think that at the beginning of an event gold and silver will have an inflated value. As things taper off people will come to the conclusion that little or no demand means no value. It will take some time for the value to return and society reestablishes itself.

 

I view the role of PM's as something to store value in the time of transition.

Take for instance, I buy 10 ounces of silver now for 310 and 1 ounce of gold for 1660 today.

total cash outlay is 1970 FRNs.

Lets say that in a year a
loaf of bread goes from 2 to 3 dollars
a gallon of gas goes from 4 to 6 dollars

basically the value of the FRN is in the crapper.
what you could buy for 2000 will now cost you 3000.

I HOPE at this time the value for my PMs has now gone from 1970 to 2955 FRNs.

let's say they come out with a new fiat currency the NEWFRN and you trade in your old bills at 1 : 0.667 ratio if you had saved 1970 old FRNs bills you would get only 1300 NEWFRNS

If however you had converted those FRNs to PM prior to the inflationary time you might be able to convert the PMs to FRNs (2955) and those would be worth the original 1970 NEWFRNS

Take a look at the past (no guarantee of future results but ...) Back in the 60s you could have bought a gallon of gas for .25 cents. You know, if you had the same 1960's quarter today (silver) you could get 1.25 gallons of gas ($5.50+) as the coin contains about .1788 troy ounces of silver.

PM's are not for everyone but there may be the possibility to use it as a vehicle to hedge against inflationary pressures if done wisely.

YMMV.

 

I only have a few bucks worth of silver....a friend kept telling me to get gold, but where I intend to go (bug out site) there's NO way on this earth I'd get any fair exchange as there are no banks for over 60 miles (not even a town for 11) and I doubt the gold would have any value ( for me) if things go sideways, especially out in the boonies! Silver Coinage people recognize and accept....I put my extra funds ( of which is dwindling anymore) into barter stuff .

 

Barter stuff will do much better the pm's. I have a good friend that is crazy about buying silver. He thinks that if the shtf, he will be able to go to town (yea right) and use silver to buy food and gas. I have 5 acres of tators, you have silver coins, and you come over to my place to trade for my tators. You lose, as I can't eat the silver and can trade my tators for maybe some beef or pig etc. I doubt very seriously that very many people would trade you for pm's for much of anything that you really need to survive.

 

If your attempt to sell was in the time frame of your first post then you may have hit the most recent low point of gold purchases in INDIA. Little in any buying or selling.

Then there was also the recent TAX increase on gold sales in India and a reaction of the India gold marketeers to shut down all sales! This as a "Shove It" move against the India Gov.

None the less, gold trinkets in India are a more saleable item and easier to check. Maybe next time you could have a heavy chain or a wrist wrap of some kind.

Just be sure you know the weight and purity so you know how much to ask on any given day.

BTW, actual gold and silver chains were more common for barter in the past. This so a link or so could be cut off and sold as needed.

Also you can claim the Gold or Sterling Silver as you enter and be safe having it as you leave or not.

YMMV

 

How many here can test to see if it is real gold or silver?

 

Pretty simple, kits are easy to purchase and all real preppers should have this skill set.

None the less I believe the first post was about trying to sell to "Gold Merchants" etc. So of course those folks as well as Jewlers have the min. equipment. Check around and you'll find it's not that big a deal.

On track, on time.

 

Here is how to test and here is how to beat the test; the YMMV was quite appropriate.

In today's world gold has value. In a post shtf world, how many here plan on accepting gold in trade for their medicines, preps, tools or weapons?