When The Dollar Crashes
April 12, 2013
The inevitable crash of the US Dollar is only a matter of time. How much time remains is the only logical question and each of us, consciously or unconsciously, is betting our lives, and the lives of our families, on the answer.
If you think this is just a rant by some lunatic conspiracy theorist, you've already placed your bet and nothing I can say in this short article can possibly break through the lifetime of media hypnosis through which you see the world. Go back to your TV, cheer for your favorite sports team, display your ignorance to the world with your Republicrat bumper sticker and keep believing that your vote will make a difference.
For everyone else, the only advice I can offer is that you get prepared, sooner rather than later. Here are a few suggestions that may be helpful.
Alternative means of exchange:
Recently, BitCoins have become popular as a non-centralized unit of exchange. The problem with depending on this new "currency" is that it requires a computer and your BitCoin wallet to make it work. If the Dollar collapse interferes with internet access, you may find BitCoins to be no more useful than Federal Reserve Notes.
Silver & Gold
There are various ways to invest in precious metals. You can purchase Bars, Numismatic Coins, Bullion Coins, "Junk Silver" and generic silver medallions or rounds. Lets look more closely at these options.
Silver or gold bars are a convenient store of wealth but have disadvantages when it comes to barter. Because they are not normally used in circulation and easier to counterfeit than coins, you may find people unwilling to accept them without a time consuming and costly analysis by a qualified assayer. That won't be readily available during an economic collapse so it would be unlikely that you can get full value in a trade.
Numismatic coins are valued more highly for their rarity than for the bullion content. A rare coin is usually valued at many times the bullion weight by expert investors who know the market and the grading system. Unfortunately, during an emergency, it may be difficult to find such experts and therefore, as with bullion bars, it is unlikely to bring full value in a trade.
Government minted bullion coins such as the American Silver or Gold Eagle, the Canadian Maple Leaf and the South African Krugerrand are good precious metal investments and, because they are well known, will be very useful as alternative currencies during an emergency. These usually sell for a small premium over "spot" value from coin dealers everywhere. As long as we still have the internet available, you can check spot metal prices at www.kitco.com. Although most dealers are reputable, I have found www.californianumismaticinvestments.com offers free delivery on orders over $2,000 and guarantees to buy back your coins should you decide to sell them later. Their premiums for bullion coins are also lower than most.
Junk silver is a term used in the US, United Kingdom, Canada and Australia for any silver coin which is in fair condition but has no numismatic or collectible value above the bullion value of the silver it contains. US junk silver coins minted prior to 1965 are 90% silver and contain .715 ounces of silver for each $1 in face value. US coins minted between 1965 and 1969 contain 40% silver. As an American, I believe US minted junk silver will be the most useful for emergency barter as it is widely recognized and available in various denominations including dimes, quarters, half dollars and dollars, so smaller purchases are possible without dividing the coins.
Current prices for most of the things we use everyday have not changed much when purchased with junk silver coins. For example, in the late sixties, you could buy a gallon of gasoline for 29¢ using 90% silver coins. Three silver dimes today are worth roughly six dollars so that same gallon of gas is actually cheaper today than it was in 1969.
Generic silver rounds or medallions usually contain one ounce of .9999 pure silver. They can be a good alternative currency but are not as widely recognized as the older circulated silver coins and may not be as valuable during an emergency as the government minted bullion coins or junk silver.
Firearms & Ammunition
Firearms, magazines and ammunition will be very, very valuable after the dollar collapses. I recommend that you stock up on the most common calibers as they will be more universally acceptable for barter. Not only will people need them to hunt for food but defending themselves and their families from those that didn’t prepare will be an unfortunate reality. Believe it or not, I have spoken with more than one sociopath who stated he would use a gun to get what he wants when our economic system collapses. These items could be bartered for almost anything you need after the dollar crashes.
If you have specific skills such as carpentry, welding, automobile and appliance repair, plumbing, electrical, etc., you will be able to trade for many of the things you need to survive. If you can repair things, build things or offer services that are needed, you will be a valuable member of your community. People will need everything to last longer, so if you can fix those things, your services will be in high demand.
Food & Water Purification
During economic turmoil or any natural disaster, food and clean water will be your most valuable possessions. If you have the means to produce food or have a well stocked larder or pantry, you could trade food and purified water for anything you need including silver, ammunition or any other good and service you may need. Those with a stocked pantry, a viable garden and the ability to protect it will have the most security possible.
As each day goes by, the dollar is closer to crashing. Our government seems determined to bankrupt this once great nation and has turned America from the "shining beacon on the hill" to the greatest debtor nation in history. The US Dollar is about to lose it's status as the world's reserve currency and when that happens, it will no longer be worth the paper it's printed on. Now is the time to get your money out of the bank and use it to get prepared for a collapse that will make the "Great Depression" look like the "Good Old Days".