Spending Gold
 

Not sure Survival Preps is the right catagory for this post, but here it is. I've thought about this and hope to get some feedback from others on this subject.

How will gold coins be used? Most likely sold to a dealer. If cash and time are in short supply, and a dealer unavailible? How to get a fair value in services or goods from someone who doesn't (or says they don't) know much about gold?

Let's say gold is at $600 an oz. Can I expect a stranger to take my word for it? If someone tried to pay me in precious stones, how do I know their worth? Bullion marked with actual gold weight helps, but doesn't establish spot price. May be good to keep a recent reference with your collection. A slightly older reference may be more convincing if the price was higher.

The impression of value will be important. I've heard it said foreign gold isn't good for barter because they aren't marked with weight or purity. That assumes whoever is dealt with will understand these. Coins with lower purity seem larger than more pure gold, and not having a familiar face value may actually be less confusing. I think owning some foreign gold may be a good idea.

While not as credible as the coin being marked, putting a clean looking label with info including actual gold weight on a cardboard stapled type holder may help. I think the cardboard holders might also make bullion look more convincing.

A tenth oz. Eagle, smaller than a dime, may not seem worth $60 to the uneducated. A two and a half Mexican Peso seems only a little smaller than a tenth ounce coin and contains only a little more than half it's actual gold weight. $60 vs $36. Although face value in Pesos may hurt perceptions of value.

A full oz is impressive, but should that much be used at once?

To my eyes, a quarter oz. or sovereign is large enough to look like it's worth something. But they still need to be conviced it's $150. Swiss Helvetia twenty Francs is a coin I want to own a few of. It appears to be almost as large as a quarter ounce Eagle, but contains only .1867 oz of gold. $112.

I appreciate any input on this subject.

Re: Spending Gold
 

Most people are fascinated by gold coins when they first see them.

If anything, they are probably more likely to overvalue than undervalue such a coin since they don't know anything about SPOT PRICE.

But everyone knows that gold rings, bracelets, necklaces, dental work, etc., are pretty expensive.

I wouldn't worry if I were you, though you might feel safer if you stick to coins which actually have the word GOLD stamped on them.

Why don't you try showing a coin around to see what sort of reaction you get?

You might even try paying a bill with one.

I've heard of people settling large bills for coins of much less value when they produced them.

Re: Spending Gold
 

DC7 ? that's why I hold a lot of silver, as a survivalist I feel that it is easier to trade with silver than with gold...... after all if you pay with gold for a few chickens what kind of change do you expect back?

Not many people will have silver in order to give you the change and you might only be getting more fiat, something that you are trying to get away form.

Re: Spending Gold
 

Thanks to all for the replies and reassurance so far. I guess it makes sense that if someone has owned a gold ring, they paid more for it than they would for the same amount of bullion. What coins do you all think might be best for barter with the uninformed? Not looking to get over on anyone, but I figure the most
valuable appearing coins will more easily assure a good deal goes down.

Quote:

There are several reasons for a person to buy PMs.

I've always been a believer in living below your means, keeping out of debt, and saving. Unfourtunately a relative I love alot ended up with some serious debt problems. So I'm starting pretty close to bottom and just trying to build up and protect a little savings.

But I'm also trying to be prepared for emergencies. I've considered what would I have done if Katrina hit my town. I was told by a man with relatives in New Orleans the banks wouldn't give people more than $200. Seems to me that's when you need cash most.

Quote:

stick to coins which actually have the word GOLD stamped on them.

Ah, good point. Hadn't thought about that, don't want someone thinking it's plated.

I might try an experiment. I avoid showing off valuables, but maybe I'll try showing a two and a half Peso and a tenth oz Eagle to some people I know and see what they guess as the values. If anyone else tries something similar let me know how it goes.

Quote:

I feel that it is easier to trade with silver than with gold...... after all if you pay with gold for a few chickens what kind of change do you expect back?

Yeah. I think you're right, and I've collected a little bit of silver. But I think gold is useful too, especially if you want to carry hundreds of dollars worth.

Re: Spending Gold
 

If you're concerned with your gold's "liquidity", my guess would be that American Eagles and Canadian Maple Leafs would be your best bet. They come in weights that are easy to understand without having to do as much math. Unlike the foreign coins like the Swiss Franc you mentioned are .1867 gold. And then there's the gram bars you have to convert back to ounces, about 31 grams per ounce.

But I'm sure people will start to catch on quickly when the price really goes sky high. I would also make sure to make other survival preps besides just owning gold&silver. Like owning a gun and things like that. Just in case you can't trade your metals for something you need. :coolbeer:

Re: Spending Gold
 

The .1867 coins and soveriegns are priced so close to spot that IMHO they represent a good balance for speculating in bullion and incremental oz at the same time. If purchased for an extremely low premium over spot.


They also offer some slight "very slight" advantage in that due to their age (most of them are over 100 years old) they might be exemption from any consfication.

Probably not, but isn't it nice to have some history, and things that are 100 years old?

Re: Spending Gold
 

:coolbeer: I have to agree with Ponce :beer:

You need a chicken or five pounds of sugar........all you have are gold coins.

What is the other party in the trade going to give you in change ?

A BMW ?

PM values in a SHTF situation will go ballistic.........that 1/10th ounce coin could easily be valued at 10 times it's present price.

That's one more expensive chicken there matey..........Arrgghhhh

Load up on some silver dimes while they are still available. Short term bartering in a SHTF scenario will be a necessity until the smoke clears.

After things settle.........you can drag out the gold.

Re: Spending Gold
 

Re: Spending Gold
 

You could always break a gold coin into pieces and trade with them.

Re: Spending Gold
 

You do what the pirates of old did - you take your cutlass and cut the gold coins into 8 pie-shaped pieces = Pieces of Eight!!!



What?

You don't have a cutlass?? Tsk !Tsk!
(Don't try this with a gun!)

Better have some junk silver - dimes and quarters - in addition to your gold!!!


I would have thought River Rat would have suggested pieces of eight! :wink:

Re: Spending Gold
 

I won't be spending any PMs in a downturn. That's partly why I believe you should have most of what you need before hand.

I will be accepting Gold and Silver however as I have barter items already tagged and bagged

Remember. "SHTF" is not a permanent condition, there is a down side, a bottom, and then an upturn in the cycle. The bottom is the worst but will be the shortest...

Re: Spending Gold
 

Consider updating threaders re: still believe this SHTF scenario 2 years+ later, Melbo? Somehow, reading this post of yours, I get the feeling you believe this coming event (back in 2006) to be a shallow SHTF event. Still believe that, or has your position become refined? Thanks.
:wavey: