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Re: Let's talk about GOLD or other precious metals 

By: nacl01 in 6TH POPE | Recommend this post (1)
Sat, 24 Aug 24 4:49 PM | 19 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 57133 of 60008
(This msg. is a reply to 57069 by De_Composed)
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At today's prices, if I had a $2,500 krugerrand, I'm sure I could find a buyer who would give me almost that much for it. But if I had $2,500 in 1960-something dimes, I might struggle to get much more than their face value for them - about $119. That would really suck!

I have often wondered how this would work. I haven’t ever seen retailers (stores, restaurants, etc.) take silver coins at true value. I don’t even remember people talking about it in the 80s or recently. I don’t know if that happened in Weimar Germany, either.

From what I have read, in Weimar Germany, if you had to go to a PM dealer before making a purchase, it would lose half of its value before you could spend it.

nacl

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The above is a reply to the following message:
Re: Let's talk about GOLD or other precious metals
By: De_Composed in 6TH POPE
Fri, 23 Aug 24 4:31 PM 		Msg. 57069 of 60008

micro:

Re: “Ya go to a store and give them a gold piece and are they going to have change for ya?” This question also warrants a response.

You're right. Gold coins probably won't be as helpful for making day-to-day purchases as, say, silver. And if it's a silver dollar, you may still have a problem. Silver dollars represent about $30 of value. If you're trying to buy a dozen eggs, a silver dollar won't be too convenient.

I have some sterling silverware for this reason. A typical sterling spoon represents about $10 of value. For anyone with a scale, sterling silverware should be easier to spend than coins. Perhaps instead of a dozen eggs, I'd have to buy FOUR dozen eggs. That wouldn't be the end of the world (pun intended!)

The exception is old dimes. They're just about perfect. A pre-1965 dime contains 2.25 grams of silver. At today's spot price for silver, its inherent worth is about $2.13 - just about right for a dozen eggs if eggs remain plentiful.

I sure wish I had some. Tulving used to sell sacks of "junk dimes" and it seemed as if nobody wanted them. Relative to every other coin Tulving sold, dimes were really cheap. I was dumb though, not realizing that they'd be about the best type of PM to have in the scenarios I find most likely. I was probably thinking about the difficulty of selling them back. At today's prices, if I had a $2,500 krugerrand, I'm sure I could find a buyer who would give me almost that much for it. But if I had $2,500 in 1960-something dimes, I might struggle to get much more than their face value for them - about $119. That would really suck!

Again, PM is mostly for after a crisis, not during or before. During the crisis, you might wish you instead had a garden, some sacks of rice or some cans of coffee. Those would provide more direct assistance to you and your family and could be helpful in a black market situation where you need to barter.

Finally, I'll note that there are some TEOTWAWKI situations in which mankind gets knocked back to the stone age. Recovery wouldn't come for generations if at all. If that happens, gold and silver will truly have no value as there would be no "after the crisis" to look forward to. But there's no point in worrying about that. If humanity ever gets hammered that way, I doubt very much that I'll be alive long enough to worry about my silverware, my ammunition or my dining room oxen. That's probably true for you too.

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