A lot of worry is going on across the world about the dollar being frail and that it is going to be coming across some hard times. There is good reason for the worry because in the past when the government has driven money out into the market place it has caused inflation, and over the last 18 months the government has printed 2.5 times our money supply. If we look back in time we will see where the over printing of money has created a loss in its value followed by a collapse. A well-known example of a time where this occurred was from 1919 to 1923 in Germany where gold went from 170 Deutsche Marks to 87 trillion Deutsche Marks. Zimbabwe’s abandonment of currency took place most recently in 2009 due to the hyperinflation of their currency, which increased to over 1 million percent a year.
When the currency buckled in Zimbabwe we were able to see the affects it had on its citizens. The people started panning and digging for gold in rivers and mountains hoping to find whatever they could so that they could bring it into the city and buy the items they needed to survive. Gold is a good option to use as currency instead of the dollar. One reason is it is not a fiat currency like the dollar which cannot be printed into oblivion.
Rare gold coins are not the coins you want to barter with, rather you would have them in your portfolio to help with growth. If a currency collapse were to take place gold and silver bullion in small quantities is what will be wanted. Bullion coins are good coins to barter with, and a smaller value is better to have. Reason being it is easier to barter with 1/10 ounce American Eagle worth $5,000 than 1 ounce worth $50,000 assuming gold prices increased to $50,000 per ounce due to the dollar having no value. Prices would increase along with the value of gold.
The value of silver is even lower and would make it even easier to barter with as well as using it as another option for currency. If you had 1 ounce of silver with a spot price of $33 you can see how bartering with silver would be a lot easier. It is wise to have silver and gold in your portfolio for bartering reasons.
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