Gold and Silver:
Gold is for preserving wealth, and Silver is for barter

As I have mentioned before, regarding gold and silver, these two metals serve two purposes. Gold is for preserving wealth, and silver is for barter.

Probably the most common question I am asked about the precious metals, is how could a person use them in the event of a currency collapse? People ask me, “How can I use my gold coins for barter when the time comes? Do I saw off an edge of the coin and use it that way? How will people know the value of gold versus silver? The answers to these questions are relatively simple. No one knows exactly how things are going to unfold, but we could pose a very possible scenario.

Suppose that our dollar fails, and it will one of these days. When the dollar fails, gold and silver will go out of sight. People will flee into these precious metals again for financial security as they did in 1980, when we got into double-digit inflation and double-digit interest rates. Last time, with gold and silver, gold hit $850 an ounce and silver hit $50 an ounce in a short four-month period of time. When the next run on gold happens, gold will sky rocket past the 1980 high.

Gold analysts are now saying, as I mentioned before, that because of the severe shortage of above-ground gold today, that gold could easily climb to $2,000 and $10,000 an ounce, and silver could get to $50 to $100 per ounce. I don’t use these numbers to try to impress you but to illustrate a point. The whole idea behind owning gold and silver is that you will have some real money in your hand with which to buy the things you need when the dollar goes south.

Now to answer the question about how you could use your gold or silver for barter. First of all, gold is not for barter but for preserving wealth. Gold will simply be too valuable per ounce to use for barter. You can’t take a one ounce gold piece, which could be worth $2,000 per ounce, down to the grocery store or get a tank of gas with it. It is not practical. Gold is something that you hang on to as your core of wealth. Later on, if things finally settle down, you can either convert your gold to currency, if and when our government prints another currency, or you could use it to buy bigger things like a house or a car or a piece of land.

As an interesting piece of history, in 1929, when the stock market crashed, land values plummeted 75% to 95%, and people with money were able to pick up houses or land for pennies on the dollar. The same thing will happen this time when our dollar fails and the market crashes. The only thing different this time is that the money will be worthless, and with gold in your possession you will be able to pick up houses or land or bigger things for pennies on the dollar.

And, if you don’t see a collapse of the dollar in your lifetime, simply pass on your gold quietly to your children before you leave. No muss, no fuss, no paper work, no government, and no probate. In fact, that is how the big boys, the ones who own the Federal Reserve, operate. They have converted about 80% of their personal wealth into gold, and they pass on their wealth to their children, and the government doesn’t know a thing.

Gold and Silver:
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