Given the mounting dollars in debt and increased
spending on entitlements along with large scale discounting of the world reserve
currency (US Dollar), many have taken to the purchase of silver coins to support their other preparations for an emergency.
We are not discussing the diversification
of your investment portfolio here but instead providing some quick insight into a medium of exchange that would prove useful
were the financial system to fail (or be temporarily suspended with restricted access to funds) under the current lack of
government leadership or because of other destabilizing factors.
Some might recall the desperate situations and currency collapse in Argentina or Paraguay in 2002 or the German Republic
after WW1 as examples of what could take place.
Relying on your old foreign coin collection and a few silver dollars to
get you through likely won't cut it longer term unless you possess considerable quantities of some other form of barter such
as toilet paper, food or ammunition. What often prevails
is metal that is easily recognizable for the content - e.g. silver, gold, platinum, etc..
Most people would not immediately recognize what a foreign coin silver or gold content would be or
if in fact they were even authentic. Yes, there are fake gold and silver coins. You need something that will work immediately
and without any discussion.
Using a high value gold coin or bullion makes little sense as no one will have "change". You would quickly run
out of "money". One Gold coin that could serve as a useful exchange medium would be the 1/10th oz American Gold Eagle - small, more affordable, transportable and easily recognized
- they could work in situations requiring a higher exchange rate.
As for silver, pre-1965 US
Silver coins are the best bet. The most relevant players here would be the Franklin Half Dollars, The Walking Liberty Half
Dollars and Mercury Dimes. All of these contain 90% Silver content and can be purchased in various quantities for that silver
content. There are no clad versions of these coins unlike Roosevelt Dimes or Kennedy Halves. So put the KISS principle in
play - no confusion or dispute when you can least afford it.
There are also "Silver Rounds" which look similar to coins but are not legal tender - instead they
are .999 silver bullion. Silver bullion can also be had in bars that range from 1oz, 10oz, 100oz with the larger sizes meant
for investments. Silver rounds would be the best bet here as they are stamped with their content but bars can be stored more
easily assuming they are not wrapped in plastic. You can decide if people would more likely accept known coins or bullion.
Silver coins can be purchased in
bags of what are termed "junk coins" that have no numismatic value
and are pegged to the spot silver market price - as always buy when low. Depending on the spot price for silver you can secure
hundreds or thousands of dollars worth of "exchangeable" silver coins.
If you are looking to make this preparedness
investment over $10,000 you might consider gold as you will soon need an armored truck to move that many silver coins around.
If you can swing silver and gold coins - good for you.
Don't buy numismatic collector pieces for this purpose because
when TSHTF few will be collecting coins.
Instead, people will be using them and exchanging them for their silver content only. The premium you paid for the investor
quality mint condition coins will have evaporated.
Having a manageable quantity of silver content pre-1965
coins on hand to be used in emergency situations may be a good idea. Smaller sized dime coins can be added to your prepositioned
assets or evac bags and they can be used as a means of exchange if the current system
quits such as in an EMP attack (see earlier blog).
If you consider this type of investment as "insurance" at least it is one that will retain (some) value over time
and you can cash in because it does not expire.
If you visit a local merchant use common sense.....if they are a pawn shop or someplace in a seedy neighborhood - don't
go there. Online sources can provide you with a good source of information and prices you can gauge the integrity of the local
silver merchant.
Check the spot market price and if it continues to dip lower - consider going out and buying some of the coins
above. Inspect them for really worn out pieces and see if you can exchange for recognizable coins.
Added: We had some comments on whether silver coins would be recognized for their content during a severe
downturn in the economy or social upheaval.....historically civilizations have resorted to some alternate form of exchange
in those times and had fallen back on valuable metals.
Depending on the nature and duration of such events you might find regionalized "economies" adopting
some form of exchange and coins would be the most logical and available means to do so. People would quickly come to realize
the value of pre-1965 silver coins.
Those with valuable skills other than keyboarding and texting their friends would be able to exchange their services for
food/supplies. While we hope these times never come it would be foolhardy to simply ignore what is taking place all around
the world and in our own country. As always the choice is yours we just offer the suggestions.
Kerosene stoves, refrigerators, heaters, lanterns all are available to people looking for an alternative to high
pressure, highly volatile fueled devices or those requiring on-grid or regular service delivery.
On the smaller side and a bit safer would be this copy of the venerable
Swedish made Optimus-45 brass kerosene pressure stove called the Butterfly
2412 Pressure Stove.
Assembled in Indonesia the stove is put together well enough to last
out most emergency situations and carry on for years. It would make one of several good choices to have stowed away in your
emergency gear or camp because it is not expensive to own or operate.
The butterfly has some advantages
over higher priced stoves in that the fuel required is relatively inexpensive in comparison and available in bulk from gas
stations ($2.99 gallon) if need be. Gas station fuel is tinted red for IRS purposes but works just fine.
K-1 fuel can also be obtained seasonally from chain hardware stores
like Ace, Lowe's and Home Depot in 1 or 5 gallon cans. (Hint: No kids? - remove the child safe plastic cap you see here on
the metal can as it is a pain to open if injured or weakened in an emergency)
A clean burning kerosene alternative is Klean-Heat which is about
$10 a gallon at Home Depot.
There
are no wicks to replace and the stove operates by placing a small quantity of 90% alcohol or fire ribbon paste in the lower
cup and igniting that in order to heat up the tubes in the burner. These heated tubes will vaporize the kerosene when it is
pumped up using the built in hand pump. That vaporized kerosene will be forced out of the small orifice in the burner and
ignited either from the flames below or with a match or lighter. Flame can be adjusted
higher by more pumping or lowered to a simmer by opening the bleed valve on the tank cap.
This unit will accept large pots unlike most backpacking stoves and can
also be broken down into several parts. It can be carried in an upright position with the tank cap valve slightly open or
it will leak out the orifice. A small cleaning needle is included with the stove as kerosene can leave deposits that need
to be periodically cleaned from the orifice. Soaking the burner in vinegar or using carb
cleaner periodically will keep it free of deposits.
Warning - DO NOT USE GASOLINE/WHITE
GAS/COLEMAN FUEL - DANGEROUS!
Learn to take care of yourself folks...this is inexpensive insurance. Plus
you can use it camping.
Advantages:
Can use the same fuel
as alternative heating/refrigeration devices.
Fuel
is less volatile / safer to store and widely available.
Can
accept larger cooking pots and you can build a support for larger pots around this easily.
Can work with multiple fuels - bio-diesel, fuel oil, diesel, mineral spirits as well as kerosene.
Folds up compact and can be stored easily.
One gallon of fuel can last for up to 32 hours of cook time.
All you need is a small funnel to fill the tank.
