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>>>>I suppose you could end up trading your food for gold later.<<<<

Oh yeah!... If someone who hoarded gold is really really hungry, that gold coin doesn’t satisfy much. If they want any of my bread, eggs, chicken, venison, beef, sausage, vegetables, it is going to be worth a lot of gold!!!

But then again, grab this rope and pull my plow for a day and I will feed you three meals - you can cuddle up to your bag of gold coins tonight. (grin)

Hmmm which trade would I rather make - an ounce of gold or a 55 gallon barrel of stabilized gasoline for a supply of food. Gold = $1,000 now Gasoline = $99 for 55 gal.

With that 55 gallons of gas, I could till and cultivate my acre and a half garden for a whole year or run my smaller generator for an hour a day for 48 days.

Do I really have to think which one I would trade for?

It is all about perceived value!

But it’s not an either-or choice, GG. To be wise, I think people should have a lot of food and at least some precious metals stashed away. Even if one was 100% self-sufficient and could make their own shoes, retread their own tires, spin their own cloth, etc - there are times when money will be needed. The doctor might barter for food, but the property tax collector likely will not. Some others that provide needed services may not either if they already have enough food.

And although PM cannot be used as money at the moment, history shows that when a country breaks apart and their currency becomes worthless, precious metals once agaain start being used as money (ie., Argentina and keep an eye on Iceland). Historically here, as the dollar drops, PM values rise. So it’s also a good hedge against hyperinflation as far as capital preservation goes to have at least some investment in PM in a portfolio. The market certainly isn’t helping with inflation. CDs pay pitifully. And treasuries - when Asia decides she wants no more, the dollar will be in big trouble.

Besides, I don’t have the storage for $25,000 worth of food. That would likely take another 2-3 bedrooms!. Maybe when my son moves out ;) However, $25,000 worth of silver will fit easily in a gun case. Silver is more likely to be needed for daily trading, gold only for large/expensive items. Speaking of gun cases ... not just food or PM can be used for trading. Ammo, soap, tools, all types of services, etc. I heard on the radio that bartering on Craig’s list is up by 100% over last year. Perhaps it’s starting...