Bartering With Gold And Silver
February 24, 2014 by Bob Livingston
Could you cover some info in BLL (The Bob Livingston Letter, subscription required) on how a person would go about spending or using gold or silver if we were to buy any quantity of it in physical coins?
Dear J. Palmer,
Think of gold and silver as commodities for barter. As the dollar gets lower on the dollar index, people will begin thinking about their silver and gold. The use of silver as money is sure to come before gold, because silver coins predated 1964 are still legal tender. This means they look like our clacker coins do now but are 90 percent silver. People will catch on to the difference in a hurry and will take the silver money over the paper money, which is wasting away in purchasing power. There will be exchange charts everywhere, frequently updated for the lower exchange value of the paper money. This is not a new idea. Right now, in every country, exchange charts are available in each currency. Gold and silver will always be going up against depreciating paper money. The public will become keenly aware of the difference. At one time in France, during the Assignat paper money collapse, the government decreed the death penalty for anyone trying to use anything but the wasting paper money. The people used their silver coins anyway. Most people had only the worthless paper money, and many starved. So we learn to barter the same as if we swapped a cow for a horse. We swap an ounce of silver for a bag of groceries.