There’s an old saying among my long-term prepper friends…"You can't eat gold." True, I tell them… but you can’t eat paper money, either! Or plastic credit cards. Or Bitcoin!
Why do some preppers disdain gold?
There are several reasons, actually…First of all, people get very emotional over gold and its potential role in both their financial and survival plan. Many financial experts love gold for its legendary property as the ultimate “store” of value. (The same can be said about silver and precious stones.) But others dislike gold because there’s no real functional purpose that it serves, especially in a pinch!
Consider what Warren Buffett has to say about gold…
“Warren Buffett has been very vocal about his disdain for gold as an investment. He sees little to no value in it. What Buffett refers to as a lack of value results from a lack of usefulness. He once stated about gold, "It doesn't do anything but sit there and look at you." - https://www.investopedia.com/ask/answers/021615/does-warren-buffett-invest-gold-why-or-why-not.asp
Silver (a harder metal) can come in handy in survival scenarios -- because it can be melted down and made into useful tools, a spearhead for protection, or even a spoon for soup. And silver coins or bullion can be used for barter. But the purpose of buying gold (or other precious metals) is not “appreciation” or profit speculation.
The purpose of buying gold is to BREAK EVEN and protect your wealth, relative to the shrinking value of the dollar.
In other words, it’s a “hedge” against inflation. You see, when paper money loses its buying power, gold generally doesn’t. Gold keeps its value. Consistently.
Stated differently, gold never changes its real value – but paper currencies do. If you measure the price of gold against “fiat” paper currencies such as the U.S. dollar (not the Italian car manufacturer), the “dollar price” of gold has dramatically increased over time. But that’s because the “purchasing power” of the U.S. dollar has dramatically decreased.
It’s all relative: It now takes more dollars to buy the same hunk of gold. Think of it like a “seesaw”... As one side goes down, the other usually goes up. A classic example comes from early in the last century, when gold coins were a common form of money in America. In 1920, a U.S. $20 gold coin could buy you a very nice men’s wool suit. Today, that same gold coin is worth enough to buy you a very nice men’s wool suit!
The suit didn’t change its essence. A suit is a suit.
Likewise, a $20 gold coin from 1920 (which was nearly one ounce of gold) is still the same amount of gold. Its essence has not changed. And as of this writing, one ounce of gold is approaching its all-time record of $2,000 – roughly the price of a well-tailored suit!
What Gives???
Basically, the U.S. dollar has been gradually devalued.
Technically speaking, the definition of “inflation” is an increase in the money supply that’s “out of proportion” to the overall economy. Think of it like watering down a bowl of soup.
When the government over-spends by increasing the supply of dollars, the purchasing power of each dollar gets diluted. And during the global pandemic, the government certainly has been increasing the supply of dollars!
Before long, it takes more dollars to buy the same thing – because the “inflated” currency doesn’t buy what it used to.
FACT: According to the Federal Reserve, today’s dollar is worth only FOUR CENTS compared to what it started out at (100 cents) in 1914. So that’s why things “cost” more.
Ever since 1914, the value of the dollar has been on a downward trend – again, like a seesaw. When the purchasing power of the dollar goes down, the ‘price’ of gold (in dollars) goes UP.
Now, how does all this affect YOU and your Emergency Preparedness Plan?
Glad you asked.
Evidently, there are many rumblings that we’re coming to the end of the U.S. dollar as the world’s “reserve” currency. The world’s central banks (led by the International Monetary Fund and the Bank for International Settlements) have plans for replacing the dollar with something called a “Synthetic Hegemonic Currency” – a new form of money that will probably be “digital” money, like Bitcoin.
Well, if you’re the least bit opposed to this new system and its potential to turn every person on earth into a slave of the global “financial elite,” you might conclude that your only alternative is GOLD as the best form of money for your personal needs.
And you could be right! After all, “money” is simply a medium of exchange – a “go-between” that replaces barter. And gold surpasses all other forms of money in human history. So let’s turn our attention to how YOU can use gold as an alternative form of money in the coming “new world order.”
What To Do If The Dollar Collapses
As mentioned above, inflation happens when the money supply is increased too quickly, usually due to excessive government spending. Certainly, right now, our government is spending like drunken sailors!
They’re “creating” money out of thin air. And that’s not healthy when done excessively.
The danger is “hyperinflation” – such as we’ve seen in many countries throughout modern history. In Germany after World War I, the Treaty of Versailles forced the Weimar Republic to print money like mad in order to pay for “war reparations” to other countries. As a result, their currency rapidly lost its value, or purchasing power. For instance, the price of a loaf of bread skyrocketed from 163 marks to 2 billion marks! Such economic devastation ultimately led to the rise of Hitler.
More recently, the government of Venezuela hyperinflated their currency – with similar results. It took stacks and stacks of currency to buy a single tomato. Soon their money was worthless. Starving Venezuelans would simply throw it away. Perhaps you’ve seen the pictures of their currency littering the streets while the citizens were digging through garbage cans, looking for food.
That could happen again. And it could happen right here in America.
After all, our government has inflated the money supply by the trillions in just one year – thanks to the over-reaction to “COVID” and the inappropriate economic shutdowns. Are those chickens eventually coming home to roost? Yes. They have to.
And that’s when inflation is going to get ugly. When it happens, it will strike quickly. We might become “Venezuela 2.0” – with all the misery and suffering that entails.
No, I’m not “fearmongering” – I’m FACT-mongering.
Money isn’t something that should ever be corrupted or debased. But when inflation gets out of control, the people pay the price. And that is what we’re likely facing in the months and years ahead. Many believe it will happen this year.
So…How Should You Prepare For This Looming Financial Disaster?
It’s very simple.
First, make sure you have enough Emergency Food stockpiled so you can get through the coming chaos. You don’t want to be digging through garbage cans like the people in Venezuela have had to do.
Secondly, don’t depend on the U.S. dollar as a form of money. Its purchasing power is destined to disappear, right before your eyes. Turn your Federal Reserve Notes into gold. Gold won’t fail you – but Federal Reserve Notes might.
Thirdly, prepare to BARTER for everything you need. Person-to-person transactions don’t require a government-issued form of money. You can get what you need by trading what you have. But the key word there is “have” – which is why we strongly encourage you to stock up on the “basic necessities” of life… far beyond the amount you’ll personally use.
Think of it like a “barter bank account” – where you’ll use all kinds of things in true “value-for-value” transactions. You can barter lots of things like gold or food, ammo, jewelry, or even services (like knife sharpening) and survival skills (such as hunting or fishing). Bottom line? Barter is what people turn to in a financial collapse when money becomes worthless. And that scenario may be right around the corner.
This is why you should have a well-rounded “Survival Mindset” – which means you need to be well-stocked with things of REAL VALUE. Gold is the one thing that keeps its value over time. (Silver is also good, but not as good given an ounce of gold will always have much higher value than an ounce of silver. Less weight to carry and more bartering power.)
Preparedness means being realistic, not idealistic. And right now, with the way things seem to be going in the “new normal” – gold is your best hedge against economic disaster.
At today’s prices, one ounce of gold is worth enough to pay for ONE YEAR’S worth of survival food (per person).
Keep that in mind, and you’ll never go wrong. Stay alert, friends.
In Liberty,
Grant Miller, Preparedness Advisor
My Patriot Supply