The video tells you a lot about what is happening with money overall. You will notice that the cost of everything is rising. This is because paper money can be printed in unlimited quantities once fiat money is in place. The gold standard limited the amount of money that could be issued by the amount of gold and silver that was available. This meant prices would be more stable and only shift in accordance to supply/demand of the product of service. As it stands today the value of our paper money is constantly decreasing through inflation and since there as some many consumers out there with fake money (paper or electronic currency) the amount of available resources is reducing causing prices to increase.
The current inflation isn’t as noticeable yet to consumers as most product manufacturers are reducing quality or quantity of products without telling you to keep up the same appearance and prices. I call this “Same bag, less chips”, after they can no longer do this without you noticing they will increase the prices.
Gold and silver has always been desired mostly for the look of items made from it. For those in medieval times that had everything needed to survive would buy luxuries like gold and silver. Since they had everything you would want to barter with more options of what to get. So the have nots would collect gold to trade with the haves when they could get Cows, chickens, horses, grain or whatever they needed with a single item.
Today’s paper money is currently useful as everyone believes in it’s buying power. As soon as people stopped believing in it’s value no amount of paper money will food for you and yours. As a nation we have a problem with our understanding and use of money. We fail to see what it really means and are quick to write off anyone pursuing or has achieved wealth as being evil. Francisco D’Anconia in Ayn Rand’s novel about capitalism, Atlas Shrugged, discusses the nature of money, he says…
Let me give you a tip on a clue to men’s characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it.
Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter. So long as men live together on earth and need means to deal with one another – their only substitute, if they abandon money, is the muzzle of a gun…….
….Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out.[Read the rest of this speech | Buy on Amazon]
The author Ayn Rand escaped communist Russia and wrote many novels about capitalism. She was a strong advocate for capitalism as the only fair economic systems and drew from her own experience in a communist state. She is a true patriot to the ideals our Fore-fathers tried to set in place. Atlas Shrugged is a great novel to give you some insights on the path our politics of entitlements and control of free-markets can lead to.
So how does Gold fit in?
Don’t trust the Dollar wholeheartedly. Any wealth you think you have obtained in paper money (us dollars or post 1964 coinage, stocks, bonds, etc) can be whipped out overnight through hyperinflation or economic collapse. History of Hyperinflation shows this has caused chaos in societies since the beginning of time. World War 2 was in part caused by hyperinflation in Germany due to the Treaty of Versailles. Where a family would need large baskets of German currency to buy a single loaf of bread, this allows Hitler a platform to take control of the society and blame the Jews and Business men for the economic state. In fact it was the government’s printing of money to pay it’s world war 1 debts that weakened the value of the money.
You should put part of your financial plan into more stable currencies such as gold and silver. Not paper gold and silver like stock in mines, or gold trusts but physical gold and silver bullion or coinage. If everything collapses the value of Gold and silver will stay. A great investment is Silver US Dimes and Quarters 1964 and earlier. These coins are 90% silver, and good small denominations that should you be forced to barter in gold or silver you can pay for say to day items. At the time of this article the price of Silver is around $33 an Ounce. The typical silver quarter can be bought at about $6-7 per $0.25 face value, and a dime around $2-3 per $0.10 face value. This should show you immediately how much inflation has decreased the value of paper money. There is a multiple of 24 times face value.
The great depression has nothing on the next one
During the great depression we had paper money ie stocks and banks take the country down financially. At the time the money was backed by gold so people still believed in the money, it’s just the banks had lost their money in stock investments and you couldn’t get any money due to bank runs and no paper money left. So having physical money still meant something to people and you could buy what you needed if you had the money. For those who didn’t have money many got by either from food they grew on their land or went to live with relatives who lived on farms.
Today our money is purely paper, so in a collapse it will be good for two things, starting a fire, and whipping your ass. Initially people will still trade goods for dollars but as the good disappear and the value of the dollar decreases rapidly that will stop and an alternate currency will be required. gold, food, goods, ammo, etc. At the time of the great depression 40% of the population lived and worked on farms, today that number is only 2%. Given our countries debt to other countries, who’s to say they won’t come to collect their debt with force. In such a situation you may face civil war.
As a prepper we can’t say for certain any of thoughts will come to be, however with our desire for security through self reliance we don’t want to leave anything foreseeable to chance. Gold and silver has historically been a stable currency through all civilizations, so you should add gold and silver to your plan.