Gold denominations needed???
 

Hi Everyone,


perhaps a stupid question but I look at gold and silver as various denominations of currency. For example, 1 oz SAE = dollar bill, 10 oz bar (silver) =20 or 50 dollar bill, GAE (1oz gold)=100 or 1000 dollar bill. THis allows me to barter in the various quantities should I ever have to.

Should I be acquiring gold in 1/10, 1/4 1/2 etc as well. Or is there a redundency in this?

All help greatly appreciated.

Peter

Re: Gold denominations needed???
 

Fractional gold is useful for two things:
1. smaller denominations for bartering
2. smaller size

#1 is covered by owning silver, but #2 is important on its own -- the ability to have large wealth in a very small size. That means portability and concealability. Heck 1/10 oz GAEs for example are a little smaller than a dime, you could put them in the lining of your coat and no one would know they are there without a metal detector.

Re: Gold denominations needed???
 

I appreciate the quick reply Cassius,

I am trying to figure the correct methodology for stocking gold. For silver (all numbers hypothetical and not indicative of my stash) after 1000 SAE than storage is a problem so move to 10 oz bars. After 30-50 10oz bars than storage is a problem maybe considers 100 oz followed by 1000 oz (although i dont see going to these as they have too high a value to barter and are too heavy to carry)

Gold 1 oz coins are hard (for me) to have so many that storage is a problem like SAE. So why would I want 1/10 dime size. Carrying convenience of 10 1/10 coins versus 1 1oz coin seems in favor of the latter.

Please dont take this as me being argumentative but rather inquisitive as I am trying to figure out if I should purchase 10 1/10 coins when I am ready to buy 1 1oz coin.


Thanks for any help,

Peter

Re: Gold denominations needed???
 

Hi Peter, Good to have a mix. I prefer 1/4 ounce, then 1 ounce, then 1/10 ounce. I don't like having too many 1/10. They are too small in my opinion and the premiums can sometimes be high.

Re: Gold denominations needed???
 

Well what if SHTF turns into EOTWAWKI. What if you have to leave in a hurry and don't have time / room to take your silver, maybe you can come back for it maybe you can't. In times of civil unrest transportation becomes difficult but given incentive sometimes a guard can be persuaded to look the other way. Do you want to part with a whole ounce since you didn't bring silver?

If you have no survivalism concerns and don't ever anticipate using your PMs for anything other than converting back to FRNs at some point, there is absolutely no reason to get fractional gold since you pay a premium.

But then if that's the case why buy 1oz silver coins or bars... If you anticipate always having access and just converting back to paper money (even if not dollars) at some later date why not have all your silver in 100oz bars? They're cheaper...

What exactly do you want smaller denominations for? Bartering in SHTF scenario when people don't take cash or what? In such a case do you ever see the possibility of not having immediate access to your silver because of having to travel light / move quickly, or because you want to have a lot of money in case you need to make a big purchase but it not be conspicuous, yet still divisible for smaller amounts if needed?

If you're going to buy stuff and you don't know if they'll have a little of what you need or a lot, or you intend to negotiate, you might not want to show up with your coat weighed down by a hundred 1oz silver coins.

But like I said, if you're into it for wealth preservation (inflation hedge) and are not worried about survivalism then fractional gold is a total waste...

(I'm only slightly worried about these scenarios I mention myself, so I wouldn't have more than ten 1/10 ozers personally and the rest in 1oz. But I like the smaller denominations for all of these scenarios)

Re: Gold denominations needed???
 

Well let us say Silver is at $20.00/oz & Gold is 1000.00/oz
A 42~45 nickel would be = to 1 FRN. Today
But if Silver is at $50.00/oz it would be = to $2.81 or $112.53/roll !
Or at $100.00/oz = $5.63/$225.06/roll

A Silver Dime Value.
Say Silver is at $20.00/oz & Gold is 1000.00/oz
1 Dime = $3.62 or $180.85/roll
$100.00 = $7.23 $361.70/roll

Re: Gold denominations needed???
 

Are you sure you did that right sir? 36x face value at 20 Dollar silver?