Alternative Currency During a Crisis
Typically, on this site we share information and resources on Food Storage, planting, and grains. Our intent is to provide information on how to prepare for a coming crisis and food is usually a big concern. In this article, we want to share some important information on Alternative Currency During a Crisis
In the initial stages of a collapse, money will retain its value in people’s minds because for centuries coin has held allure. Habits cannot be broken overnight. A handful of gold coins are still a handful of coins. A suitcase stuffed with bills would still makes a person’s eyes shine and their palms sweat. That is until they get hungry and dehydrated and realize the food lines are shut down and the grocery stores are shuttered.
Value is based on supply of and the demand for something. When the financial system collapses, a dollar bill is essentially only good as a fire starter. However, people will refuse to accept this for weeks, months and possibly even for years. People will want money and will hoard it in hopes that the situation will change.
Money in the traditional sense will not be a tangible asset. You have a wallet full of one hundred dollar bills but your neighbors know that paper money is no good. What can be bought with it once the manufacturing sector is shut down? The government has collapsed so there are no monetary policies and there are no stores to walk into. Once people realize the situation is for real your one hundred dollar bills will not be able to buy one loaf of bread from friends or neighbors.
What you have as far as possessions (tangible goods), as well as your knowledge and your training will be the new currency. You will have assets that can be used to purchase goods from others, and they too will have assets.
Most people recognize the fact that gold and silver have value because it is finite; in other words, there is a limited supply of it, just like land. There is no way to produce land, gold or silver and when every square foot of land is occupied and every ounce of silver and gold is mined then you can essentially name your price; if there is still a market.
Having too much gold and silver on hand will likely result in you becoming a target for thieves and you will never receive the full value when trading. Once the crisis has extended for a period people will not sell food and water, and those that are willing will not necessarily care what the price of gold is because it is only worth what someone is willing to pay for it or trade for it. You may end up giving several ounces for a week’s worth of produce, a dozen eggs or gallon of bleach so you can disinfect a water supply.
Consider gold jewelry such as rings and watches instead of gold bars or coins. Consider how you would break up an ounce bar of gold to pay for what would normally only be a few dollars worth of items. People can better understand the value of a gold ring or watch or other items made of gold. It will be difficult to get someone to understand the value of a sliver of gold shaved off an ounce bar to pay for supplies.
You should have gold and silver in small quantities because there will always be someone who will take it for currency. However, spending large amounts of money today to have a hoard of silver and gold for a crisis is not recommended. A large portion of your current cash supply should be used to purchase tangible items such as tobacco products, alcohol and over the counter medications.
Skills and Knowledge
Medical, carpentry, engineering, agriculture and veterinary services will be highly valued skills that can be used as currency when the dollar is no longer tradable. Currency will be whatever you have that someone else needs or wants.
Clothing, jewels, food, medicine and water can all be used as currency but food and water will be valuable not only in trade but for your very survival.
You need to make sure you keep things to yourself and not brag about or assume anyone has your best interest in mind. People will be looking for those prepared, because regardless of the warning, the signs and information available, many will not prepare for the crisis. Security is important for you and your family, and you must remain vigilant at all times.