Why silver and gold won't protect you from the economic collapse that's coming

by Michael Smith (Veshengro)

Silver and gold, especially in the form of so-called trade rounds, are often advocated by people in the survivalist community – who also have a vested interest in doing so – as the currency after the event of an economic collapse or such like.

old-us-silver-and-gold-coinsHowever, silver and gold coins, and even less so bullion, will not be accepted as a means of exchange, that is to say as currency, by anyone after such an event and the reason for this is first and foremost that no one has the faintest idea as to how to value such coins nowadays.

There may come a time, long after the initial collapse, that such coins will become the coin of the realm, so to speak, again but even that is questionable. Thus acquiring and hoarding such – and investing money in them – would be more than foolish.

Mean of exchange after an economic collapse or other such or similar event will not be silver and gold coins or bullion, unlike it was the case after the two world wars and during the Great Depression but skills and products and, yes, the original currency of the country, in cash. Anyone who thinks and believes otherwise will be in for a very rude awakening.

The skills that will enable you to barter for things you want and need and cannot produce yourself will also not be academic or high-tech but will be skills of the hand and of working the land. Anyone not possessing such skills will do well to learn them and, in addition to that, it will be advisable to keep money, in the form of the currency of the realm, in cash somewhere safely stashed.

Look at the sites that advocate silver and gold coins and also bullion and think laterally when you see all the adverts for the vendors of such coins and bullion advertising on the site (or in the magazines). It should give you some idea as to why they are advocating such as means of economic exchange. They pander to their advertisers or, alternatively, they are very naïve and believe that people really will accept silver and gold coins and precious metal in other forms as means of payment for goods and services.

This, as said, while that worked after the two world wars will not in the modern world when the economy collapses or the political structure as we know it today, and it will. The reason is a simple one. After World War One and World War Two people still understood the value of silver and gold, having not so long ago had such coins in their currencies, very much in the way that the Pound notes in Britain did state “I promise to pay the bearer one, five, or whatever Pounds Sterling” and the Sterling here referred too Sterling Silver. It was directly valued against the value of such silver. Not any longer and thus the belief that such coins will be accepted are total hogwash.

The means of economic exchange after a collapse will be barter, and that means skills or products, and cash, and, maybe, much later, when the current cash no longer circulates, in the form of tokens, alternative currencies, and, maybe, later still, once again in silver and gold. Though I cannot see going any further than the alternative currency part, to be very honest. “Money” issued by regions, towns, villages, and such like, similar to today's Ithaca Hours, Mountain Hours, LETS (local exchange trading systems) or such like.

So, invest in skills and lay by cash, and don't waste money and time on acquiring silver or gold. Be wise not foolish.

© 2013