Originally published at Notes from the bunker…. You can comment here or there.
Theres a couple schools of thought on the idea of keeping gold (or other precious metals) in your stockpile of supplies and gear. On belief is that since it has no practical use (you cant eat it, shoot it, heal with it, etc) its not worth keeping. The other side of the coin (so to speak) is that gold always has a value and is worth having.
Im of the second camp. Heres why:
Yes, you cant shoot gold, eat gold, heal with gold, burn it for fuel or anything like that. Golds purpose, to me, is twofold. It preserves wealth and it is a universal currency.
The Bad Things that are coming dont happen overnight. Its usually a gradual slide (picking up speed) into chaos. When that happens, a few things almost always happen – credit becomes fairly worthless (cant run your credit card if theres no electricity and if theres a chance your bank no longer exists), checks are utterly worthless, and cash reigns supreme. Now, what if your cash suddenly starts to be worth less and less and inflation starts taking its toll? We've all heard the stories of Germany's hyperinflation…a bottle of wine costs 50 marks in the morning and in the evening the empty bottle was worth 5000 marks. Did the value of the bottle increase? No, the value of the money decreased. So if you get $500 a week and then it starts taking $500 to buy what cost $400 last week, thats your dollar being worth less.
Im very bad at explaining this and I know there are people here who could explain it better than I can.
But really, I see it mostly as a hedge against inflation. If I stick $100 in the safe, in ten years it will only buy, maybe, $85-90 worth of stuff. If I throw $100 worth of gold in the safe, in ten years it will probably buy exactly the same things that it would have bought ten years ago…
Its hard for me to explain, but yes I think gold has a place in anyones preparations but as a long-term strategy. (Although in the short term its great for getting past a roadblock in Checnya, bribing border guards in Mexico, buying antibiotics in Baghdad or C-4 in Idaho) Should you buy as much gold as you can? I dont think so…I think you should first spend money on the things you need to prepare with…land, food, fuel, clothes, meds, ammo, guns, education, etc…then I think you should have ready cash available…and then, when all thats done, I think you should start salting a little bit of gold away. A couple coins every month or so….
Im the first to agree that there are times when, literally, gold will be worthless but thats the whole 'prepared' part of 'preparedness'. If the world turns inot Mad Max, Ive got food and ammo…if it turns into a Soviet-style or ARgentine economy with people on line for toilet paper and food..well, thats where gold looks mighty good.
