Hello stackers, I'm revisiting on the idea of people thinking of using their silver for barter in a collapse scenario. This seems to be an idea widespread especially in the US where Americans are thinking of using US constitutional silver (circulating 90% coins) to conduct daily transactions when the dollar collapses. I understand there is a possibility that they could pull it off since its heavily engrained in their history and the denominations for their coins have largely remained unchanged and well recognised locally, but what I want to know is whether this will be a thing in Australia as well? The only scenario where I think this could work is with the 1966 50cent coin that is majority silver and widely recognised in the country. But does any one here see the scenario where the majority of the people in this country would be transacting in 50 cent silver coins for day to day transactions? If so, please tell me why you think so, I would really like to know My problem with this theory is: 1) Looking through history, the current value of silver is so suppressed and so undervalued that if silver were to operate freely, I'm not sure if it would be used for daily transactions as throughout history, even silver was too valuable for small scale transactions. Throughout most of history, copper or bronze mainly served that role as with very small silver coins. 2) Silver was mainly used for commerce and large transactions, if prices were more natural and if history is a guide, it would be used in conjunction with gold for large transactions. What do you guys think?
Food, equipment and resources/services in my opinion. I don't think metals will be much of a bartering item at all, except with stackers or people that will give you very little for it. The reason is resources will be the highest prize as everyone tries to setup their lives in survival mode.
by the way, if society collapses here, will there be a rampant increase in gun related violence? I know for sure it will in the US, Mexico and the Phillipines cross my mind as well, but what about Australia? Are we civilised enough to not get guns involved or will we turn into a bunch of savages when the lights go off?
Question, do you think that a collapse in the US would end up with people seriously using US Constitutional silver for day to day transactions?
Have you driven on Perth roads lately? Every second driver is already a barbaric psychopath, impatient, discourteous, pushy, tailgating regardless of age, gender or car models! I wish they would just start stacking PM just a little bit and chill the heck off! Oh, what are we talking about here? Sorry.
I wanted to know in a collapse scenario whether Americans would seriously be transacting with circulating silver coins (90%) and whether it would be similar in Australia where people will be using the 1966 50cent rounds as barter for day to day transactions.
IMO, no - there would not be any widespread use. Stacks would preserve value until a monetary reset has stabilized. $.02
I can't see it happening, people are forgetting how to transact in cash at the moment so bartering is one step removed from that. However once we move to a cashless society, and every transaction is digital and recorded with an audit trail, that's when silver coins will come in handy. For all those transactions that take place in person which you don't want a permanent record of. I was talking to one Australian who was old enough to have been around pre decimalisation, and he could not get his head around why you would make coins from such an expensive metal when there were far cheaper alternatives. To him, coins where just a physical representation of value, not valuable in themselves. I think it would be a real pain explaining to people the pre decimal silver coins, and then having to explain that they come in two different flavours, 92.5 and 50, even though they look the same. Now if someone was to make an app that would recognise a handfull of coins and look up the spot price and just spit out a dollar amount, then I think you would have more sucess.
I have that app in my head and it goes like this: For all sterling coins, 6 Shillings is approx 1oz pure silver. For all 50% silver, 11 Shillings is approx 1oz pure silver. 1966 Round 50c, 3 of these coins is approx 1oz pure silver.
Same with those cut-off during the Christchurch earthquakes. People were too busy making toilets in their gardens to go and chop each other up (for what?). That kind of hellscape is usually the result of gangs in countries that have a huge drug trade within the midst of an unstable and corrupt government. Do you think the pea-brains with pocket knives will go and take over running multi billion dollar mine sites in WA?
People that are familiar with PMs might trade with them but the masses are pretty clueless i think. Dont rely on the zombies to have anything youd want or need but maybe an old farmer or a similar minded person might. Most sheeple wont have anything but worthless paper for kindling and youd be better off avoiding the desperate altogether. It could be a thing but within certain groups, unless the collapse lasts long enough for more to become pm savvy. Ive traded things for pms before so it does happen and during 2011 there were business taking silver for transactions.
Back between 04 and 06, cant recall exactly, some restaurant back home was offering their burger meal for x amount if pre64 quarters but the melt value was around $22 and the meal was only like $7 back then. I dont know if anyone did it or not but it didnt add up to me. Nice try tho.
Almost no one will barter for silver/gold for many many years after a real SHTF. In the beginning, batteries, food or guns/knifes will be valuable. If you survive long enough until semblance of society is established again maybe gold or silver gains some value but depends on how hard life is. Also I presume you are talking Mad Max style SHTF. In an ordinary economic recession or depression gold or silver will be worth spot rate. Look at basket case countries like Zimbawee/Venezula no one went around bartering silver/gold for bread nor bought a car/house with it. In a more recent example Sri Lanka, Russia or Turkey there are no reports of Silver for Curries, Vodka or Kebah. If in Zimbawee/Venezula/Turkey/Russia/Sri Lanka PM was traded as money in the street, it would be all over web/youtube/tictok/Zero Hedge/facebook as "Proof" pumpers were right. Also you over value silver in historical context.... Judas betrayed Jesus for 30 pieces of Silver "Judas would have been paid about $3,000 in today's value. On the other hand, various biblical scholars instead point to Exodus, where it describes thirty pieces of silver as the price of a slave." https://aleteia.org/2017/04/12/how-much-might-judas-30-pieces-of-silver-be-worth-today/
In mad max a can of dog food to eat was worth more, or fuel. Wasnt that post nuclear war too? Hopefully we dont go there but they did have some sweet old muscle cars!
There actually some very interesting things happening in Zimbabwe at the moment with gold as they wrangle with hyperinflation: https://www.pmbug.com/threads/zimbabwe-made-gold-coins-legal-tender.4966/ It's not full on barter/commerce yet, but the digital gold token project could end up normalizing trade with gold (or gold instruments).
PMs were/are not traded in the Zimbabwe streets as money because the poor peasants do not have any precious metals to begin with! They were/are hoarded and traded behind closed doors by the corrupt elite ruling classes as is always the case in every banana republic. There have been many instances shown of people panning for gold in Zimbabwe and then exchanging the gold dust for food and other necessities and the same goes for Venezuela. Nobody who has precious metals in those two shithole countries goes hungry because they can't buy the necessities of life, although you can get robbed or killed if you are not careful with what you are doing. Gold and silver have been money since the dawn of mankind and have survived till now, so any talk of their possible demise is greatly exaggerated. As JP Morgan said when setting up the Federal Reserve " Gold (and silver) is money, everything else is a credit Ponzi Scheme"
Apparently during the siege of Sarajevo in the early 90s, items like toothpaste, instant coffee and toilet rolls became high value items, little luxuries that were hard to come by. Silver and gold are easier to store and don't degrade so readily though.
