Precious Metals… What are they worth? Really? My view is that they’re worth very little until you come across someone else post SHTF that has use for them. Then and only then is their perceived value realized. Sure they’re worth something while the markets are up and running, when you buy them, when you sell them, etc. But how valuable do they become post market value if the grid is down? The markets of course fluctuate and the value of the precious metals fluctuate with it, whether organically, propped up, or artificially suppressed. I believe precious metals become more valuable to those that are prepared to use them, have them, and have resources to barter and trade for. Otherwise, precious metals are worthless, with the caveat that if someone on the outside sees them being used to sell or procure resources, they will realize value in their minds. They will suddenly need some silver, gold, platinum, copper, or whatever is being used as the currency of choice.
So what does this mean? I believe it means that unless you know anyone else who has the same belief as you about precious metals as currency they are pretty worthless. Those that don’t have them pre-SHTF may not see the value in them when you need to use them. I believe you have to have a network of people that plan on procuring, storing, using, and bartering with them when the time to do is made apparent. I also feel that in order for this to happen, you’ll need to be in a situation where you have to have a relationship with, and are in relatively close proximity to those that feel the same as you. That is not to say that pop-up merchants, merchants on main street America, etc. won’t eventually see the value in using them. In fact, I am pretty sure that is an inevitability that they will see it as high value. I also make the assumption that those same merchants will take any consumable that has perceived value as currency as well.
What are your thoughts?
I agree. PMs are useful before a collapse as a way of converting cash into something other than cash that retains value. If a collapse is an economic one with a bit of a lead time, those PMs could go up a lot in value. If you see that coming, you could convert PMs into food, medical items, ammo, etc. Right after a collapse PMs will probably be useless. If it’s a no-kidding Mad Max fall, eventually PMs will probably become used as money again, as they have been for thousands of years. Then someone will come up with fiat currency and the cycle can repeat 😉
Thought I left a comment here… anyone home?
Sorry Redstone. Have been out of the loop with personal stuff for many weeks.
Gold and silver in my line of business is used heavily in manufacturing. You have given me a new perspective on the worth of precious metals in the event that the shtf. From now until the EOT I will stock soft goods for trade for precious metal so i have a one up on the rebuilding of society. My garden helps.
My thoughts on it are, not many people will rely on PM’s as a currency because they’ll be to focused on “what do I need to survive”. IF they managed to keep a stock of PM’s either in coin or jewelry most will quickly give up anything to someone with the item/product they need. If your family is absolutely desperate and I have a ton of food, you will give me whatever I want even if it’s all of it.
I do however believe Alcohol, fuels, foods, weapons (all of them) and ammo supplies (cartridges, arrows, bolts etc) will become extremely valuable.
To those people/families that have a stock, they will be fine/ok with using their sources in moderation and trading/gathering/growing more (thinking long term here) and what they have will become trade goods for those in need.
In short, PM’s… not so much.