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Why Gold Would Be Useless in an Economic Apocalypse: Seriously, stick with the canned goods
The Atlantic ^ | 12/27/2013 | JORDAN WEISSMANND

Posted on 12/27/2013 5:44:30 AM PST by SeekAndFind

Since November, financial advisor David Marotta has been publishing a series of blog posts on how to manage your money in the event of a financial apocalypse—as in a world of hyperinflation, governmental collapse, and anarachic mobs. You know, the standard stuff of a doomsday prepper's fever dreams. While Marotta admits he has some fears about the direction of the country (the man's not an Obamacare fan, to say the least) most of it seems to be fairly tongue-in-cheek material aimed at talking potential clients down from investing in some of the crazy, survivalist scams advertised on conservative talk radio. (Sadly, The Washington Examiner seems to have missed the humor).

And the first scam on his agenda? Plowing all your money into gold, of course. Here's his biblically inflected explanation of why toting around a suitcase of gold come the end times—and at today's prices, a $1 million in gold coins would fit in a suitcase—would be a suboptimal strategy:

If there really is a collapse of the money supply it is difficult to believe that your briefcase of pretty coins will still have any purchasing power near $1 million. In the 1970s, Christian singer Larry Norman made popular the Apocalyptic song lyric, “A piece of bread could buy a bag of gold” based on Revelation 6:6. In The End, I’d rather not have bought as much gold as possible.


(Excerpt) Read more at theatlantic.com ...


TOPICS: Business/Economy; Society
KEYWORDS: apocalypse; cannedgoods; gold; preppers
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1 posted on 12/27/2013 5:44:31 AM PST by SeekAndFind
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To: SeekAndFind

Ammo would be quite valuable also.


2 posted on 12/27/2013 5:46:20 AM PST by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: SeekAndFind

Yes, gold would be useless IN the economic collapse.
But that’s not what it’s for. Screwdrivers are useless when used as paint brushes, too.

Gold is for preserving wealth until the recovery.


3 posted on 12/27/2013 5:46:50 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

how many canned goods and sacks of flour fit into a bug-out bag if the situation dictates re-location?

not everyone (actually very few folks) can build a long term fortress to defend their stash). eventually the zombies will find the fortresses and eventually the ammo will run out

easier to use junk silver to buy some sugar, aspirin, or a gallon of fuel, than figure out how many cans of peas to trade for it


4 posted on 12/27/2013 5:48:26 AM PST by silverleaf (Age takes a toll: Please have exact change)
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To: SeekAndFind

If gold would still have value, people with guns and ammo would take it. In the case of a collapse, guns, ammo, nonperishable food, and soap would be valuable, and soop could be used as currency, assuming we don’t totally sink to savagery. It can be easily divided and subdivided.


5 posted on 12/27/2013 5:48:57 AM PST by Daveinyork (IER)
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To: SeekAndFind

Something tells me that the author really did not have Ezekiel 7:19 in mind when writing this.


6 posted on 12/27/2013 5:49:49 AM PST by Olog-hai
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To: SeekAndFind

And coffee would be especially precious.


7 posted on 12/27/2013 5:50:18 AM PST by Daveinyork (IER)
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To: SeekAndFind

Gold hording was good when a local region experienced chaos...the user of gold could move to an economy that still had their system up and running...the problem today is that there would be no place to move that would not be affected by global economic chaos....so horde the items needed to survive...gold should not be one of them...ammo and canned or dried foods ...wine...distilled spirits...medical items...weapons..both blade, gun powder, and archery types will be more valuable than some shiny block of gold!!!


8 posted on 12/27/2013 5:51:03 AM PST by BCW (Salva reipublicae)
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To: SeekAndFind

While I have a modicum of staples like that, I am of the persuasion that a typical garden variety bullet will have more tradable value at the micro level.


9 posted on 12/27/2013 5:51:19 AM PST by Gaffer
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To: SeekAndFind

A friend of mine at www.surviveusa.biz sells fractional gold-—very small denominations that would be perfect for exchange.


10 posted on 12/27/2013 5:51:26 AM PST by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
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To: SeekAndFind

Ammo absolutely and canned food. But I’m still betting on dimes. Got a bunch stashed away with my lifetime supply if incandescent light bulbs which will be useless.


11 posted on 12/27/2013 5:52:51 AM PST by ThePatriotsFlag (...and to the Republic for which it stood.)
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To: RoosterRedux

I’ve also wondered about hard liquor. You can get family sized bottles of GOOD rum and vodka at Costco for about 15 bucks.

But then, the things that will REALLY get you through are a large garden, guns/cartridges, solar/wind power and a good source of water.


12 posted on 12/27/2013 5:53:12 AM PST by cuban leaf
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To: BCW

“An economy that’s up and running”

can be in a different geographical region,
but it also can be in a different temporal setting as well.

That’s what gold is for - “transporting” wealth to the working economy, whether it is located somewhere else, or somewhen else.


13 posted on 12/27/2013 5:54:01 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: cuban leaf

Better than big bottles would be cases of plastic pints of whiskey.


14 posted on 12/27/2013 5:54:46 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind
Fiat paper money is a relatively new phenomenon. Undebased gold and silver currency worked for thousands of years. Then the romans started to debase their hard currency. But barter with REAL gold will work just fine. In a SHTF scenario I would trade my goods and services for gold and silver.
15 posted on 12/27/2013 5:54:57 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: BCW

I have no gold, but I have quite a bit of junk silver.


16 posted on 12/27/2013 5:55:38 AM PST by cuban leaf
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To: RoosterRedux

Right on.


17 posted on 12/27/2013 5:55:57 AM PST by Venturer (Half Staff the Flag of the US for Terrorists.)
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To: MrB

The author is forgetting that a bag of gold will be worth more than a bag of Benjamins.


18 posted on 12/27/2013 5:56:46 AM PST by cuban leaf
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To: appalachian_dweller; OldPossum; DuncanWaring; VirginiaMom; CodeToad; goosie; kalee; ...

Preppers’ PING!!


19 posted on 12/27/2013 5:57:27 AM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: SeekAndFind

It is always those without gold and silver that trash it’s usefulness. Do you think those holding gold and silver will be unarmed waiting for someone to steal it? LOL.


20 posted on 12/27/2013 5:58:53 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Old Sarge

Calling Old Sarge to the firing line. Old Sarge please report to the firing line.


21 posted on 12/27/2013 5:59:02 AM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: Daveinyork
If gold would still have value, people with guns and ammo would take it. In the case of a collapse, guns, ammo, nonperishable food, and soap would be valuable, and soop could be used as currency, assuming we don’t totally sink to savagery. It can be easily divided and subdivided.

As trade/barter goods, don't forget liquor, which will keep a LONG time in the bottle.

Black Powder and Alcohol

22 posted on 12/27/2013 5:59:04 AM PST by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: SeekAndFind

Everytime I hear Beck say “gold has never held zero value” I think yeah but you can’t eat it either.


23 posted on 12/27/2013 6:03:49 AM PST by autumnraine (America how long will you be so deaf and dumb to thoe tumbril wheels carrying you to the guillotine?)
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To: SeekAndFind
Aw crap. All I bought was gold.

I am so screwed.

24 posted on 12/27/2013 6:04:07 AM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: Daveinyork
And coffee would be especially precious.

How much do you think my Keurig Machine would fetch in a dystopia America? / S

25 posted on 12/27/2013 6:04:08 AM PST by Popman ("Resistance to Tyrants is Obedience to God" - Thomas Jefferson)
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To: silverleaf; Old Sarge; Marcella; JRandomFreeper

So how long do you trade your junk silver until someone decides they like to see just how much junk silver you have?

There’s no one answer, but human nature being what it is most thieves will lust after gold and silver first and foremost, even when they haven’t had a decent meal in days.

And depending on what it is and the nature of the event there are somethings I wouldn’t trade for all the gold that use to be in Fort Knox.


26 posted on 12/27/2013 6:05:54 AM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: Popman

Green coffee beans will vacuum seal and last longer than roasted ones...


27 posted on 12/27/2013 6:06:23 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: B4Ranch

Ping!


28 posted on 12/27/2013 6:06:23 AM PST by JDoutrider
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To: central_va

I have no gold or silver, but I do have 27.53 tonnes of Basalt.


29 posted on 12/27/2013 6:07:51 AM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: Kartographer
You need lead and copper to go along with your silver and gold....

All these people trashing hard currency silver and gold will dance for me like a little circus dog for a piece if it....

30 posted on 12/27/2013 6:09:17 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: MrB

Gold may also be useful for buying your way out of jail for hoarding or other contrived crimes.


31 posted on 12/27/2013 6:10:00 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: SeekAndFind

With enough toilet paper, you could rule the world!


32 posted on 12/27/2013 6:10:43 AM PST by BinaryBoy (Socialism is slavery.)
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To: Lazamataz
27.53 tonnes of Basalt.

Basalt is used in construction (e.g. as building blocks or in the groundwork), making cobblestones (from columnar basalt) and in making statues. Heating and extruding basalt yields stone wool, an excellent thermal insulator.

33 posted on 12/27/2013 6:11:20 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: MrB

Better than big bottles would be cases of plastic pints of whiskey.


You buy the big bottles and use those plastic water bottles to disperse it. And I figure a 90/10 mix with water would be about right. ;-)


34 posted on 12/27/2013 6:11:44 AM PST by cuban leaf
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To: cuban leaf

And this:
http://imakemygas.com/


35 posted on 12/27/2013 6:13:04 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Kartographer

So how long do you trade your junk silver until someone decides they like to see just how much junk silver you have?


Life is risk.


36 posted on 12/27/2013 6:13:58 AM PST by cuban leaf
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To: MrB
Green coffee beans will vacuum seal and last longer than roasted ones...

One of these days I'm going to have to find out how to roast green coffee beans!

As a long time "prepper" I have filled one of my freezers with bags of already roasted beans... Even five year old beans still make a great pot of joe!

Coffee! Gotta have my coffee! Can't drink gold! (Stashed some of that too...)

37 posted on 12/27/2013 6:14:18 AM PST by JDoutrider
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To: Kartographer

And depending on what it is and the nature of the event there are somethings I wouldn’t trade for all the gold that use to be in Fort Knox.


For personal geographical reasons, that one really cracked me up. ;-)


38 posted on 12/27/2013 6:14:41 AM PST by cuban leaf
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To: BCW

There are priorities certainly but its not an either/or question. All of those items are needed.


39 posted on 12/27/2013 6:17:59 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Kartographer

There’s no one answer, but human nature being what it is most thieves will lust after gold and silver first and foremost, even when they haven’t had a decent meal in days.


In a REAL SHTF scenario, those that have stuff will have to make some very hard decisions about defending it. Since I’m 80 miles from the nearest city and 50 miles from the nearest large town, I figure that in a scenario you describe above not all that many of those guys will make it to my place. I know that some will, but we’ll have to deal with that if it happens, no matter how rich or poor we are with PM’s and food.

My neighbors are all farmers and have cattle, even if only five or ten head. And then there are all the chickens around here (we could live off the eggs our chickens produce, though a more balanced diet would be desirable).

We are also a very close knit community. We understand that we are stronger as a group.


40 posted on 12/27/2013 6:18:21 AM PST by cuban leaf
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To: SeekAndFind

I recommend both, plus an arsenal.


41 posted on 12/27/2013 6:18:32 AM PST by nascarnation (Wish everyone see a "Gay Kwanzaa")
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To: MrB
Gold is for preserving wealth until the recovery.

Exactly. And this is a point that too many people seem to miss. Especially those who spout that "You can't eat gold" BS.
Of course you can't. (Well, you CAN but it's non-nutrative). Why would one eat gold when there is plenty of canned goods to eat?

Gold is meant to preserve and protect your major monetary assets until the next economy arises. Then you can buy back in.

42 posted on 12/27/2013 6:18:37 AM PST by Bloody Sam Roberts ("Gun horror is not a productive emotion, but learned helplessness disguised as moral superiority.")
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To: Lazamataz

Aw crap. All I bought was gold.
I am so screwed.


Don’t worry. Chinese tungsten has some value.


43 posted on 12/27/2013 6:18:58 AM PST by cuban leaf
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To: MrB
Better than big bottles would be cases of plastic pints of whiskey.

That's what I stash. Pint plastic bottles of vodka and whiskey. Verrrrrry good barter material.

44 posted on 12/27/2013 6:22:33 AM PST by Bloody Sam Roberts ("Gun horror is not a productive emotion, but learned helplessness disguised as moral superiority.")
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To: JDoutrider

I guess it’s not too hard to roast coffee beans, even over an open fire.

The problem that I see is that the smell would travel far and wide...


45 posted on 12/27/2013 6:22:57 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

The most important element of a disaster plan is the timetable. For example, what was the timetable of the Great Depression in the US?

1929 was the crash of the stock market. This affected those who invested in the market, at first. But it was just the start of the growing unemployment that peaked about 1934, about 4 years later. And unemployment didn’t really hurt until you were unemployed.

What did hurt a lot of people was when banks were closed, starting in 1933, which meant that people were denied their savings reserves. At about the same time, the private ownership of gold was forbidden. These two actions really forced people who had been careful with their money into the depression.

But overlap that with *deflation*. This effectively meant that prices continued to drop because nobody had any cash money. Even though the Dust Bowl, “the dirty thirties”, wiped out tens of thousands of small farms from Texas North to Canada, there was still far more food produced in farms than there were people able to pay for it.

This only really hurt when prices bottomed out in 1933 and ‘34, when it cost more to ship food to market than it was worth. So on one hand, too much food just rotting in the fields, and elsewhere, people were starving.

Importantly, in trying to protect the people who were suffering the worst, the government did help some of them, but hurt others who could have been okay, and dragged out the depression for years.

So on one hand, for some people the government was good, but for others, it was very bad. And in the balance, it hurt more than it helped in many ways.

And this is perhaps the most important lesson that we today should remember. Government “help” is a devil’s deal, so unless you are devastated, go out of your way to avoid it.


46 posted on 12/27/2013 6:23:02 AM PST by yefragetuwrabrumuy (Last Obamacare Promise: "If You Like Your Eternal Soul, You Can Keep It.")
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To: RoosterRedux

What people either really need, or what they want so much that it is the same thing as a need.

There is plenty of historical evidence as to what those things are. Mark Slavo has shown the types of goods that are valuable when order collapses.

Silver has value that is incremental enough to be useful as a currency. As useful as barter is, a compact medium of exchange like silver is very desirable. Direct barter has logistical difficulties, which is why silver & gold work so well.

List what you can’t live without and what you would be the least willing to live without.

The ammo situation has loosened up a lot. It will never get back to pre Sandy Hook days. But it is going to get worse, even without a “collapse”. You can bank on that.

After extensive and time consuming research I recommend a Sawyer water filter. Either (or both) the .1 or the .02. Very impressive technology.

For barter, several cases of the cheapest bourbon or whiskey you can get in *glass* bottles. Unless opened, bourbon keeps essentially forever.

Finally, and I say this (only partially) tongue in cheek, a stable of healthy and sturdy prostitutes would get you any goods or services you could want. Best currency around in a collapse. If you have the means to protect them


47 posted on 12/27/2013 6:23:10 AM PST by ChildOfThe60s ((If you can remember the 60s.....you weren't really there)
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To: Bloody Sam Roberts

I think maybe the disconnect is the idea of buying gold “instead of” the other things.

You buy gold AFTER the other things, if you have any wealth left to preserve.


48 posted on 12/27/2013 6:24:02 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: yefragetuwrabrumuy
And this is perhaps the most important lesson that we today should remember. Government “help” is a devil’s deal, so unless you are devastated, go out of your way to avoid it.

Absolutely correct. You couldn't say that too many times.

49 posted on 12/27/2013 6:24:54 AM PST by ChildOfThe60s ((If you can remember the 60s.....you weren't really there)
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To: Kartographer

and how long do you shoot your starving neighbors and wandering mobs?

I’m sure you’re one of those guys with remote wooded acreage and a spring in a temperate climate, and lots of bullets

but the average suburban home or country farmhouse was never built to become a block house.

I know from my family pioneer history of 250 years ago what it took to survive when there were roving bands of people willing to kill you and take what you had. I am neither in a climate nor a setting where defending by siege is feasible

My worst case plan is to go on the move when necessary and to be able to carry with us what we need to survive until reaching a place that is safe, and/or to safely hide or otherwide dispose of what wealth we can’t carry until we can get back for it. That may take a while. No further details necessary in this forum


50 posted on 12/27/2013 6:26:55 AM PST by silverleaf (Age takes a toll: Please have exact change)
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