[Bloody Sam Roberts]

In turn, this creates a “convertibility crisis”, where gold is so valuable that nobody can “make change” for it.

I like John Wesley Rawles' suggestion; Invest in gold chains of various link sizes...24k preferably. When gold is worth millions per ounce, purchases can be made by one, two or thre small links...or a larger link and 1 smaller link, etc, etc. Snip them off as needed to barter.

However, that is not the proper use for gold. It should only be used to "buy back in" to whatever economic system replaces the one we are going to see collapse. Or whatever currency replaces the dollar. Asset protection is the key.

[yefragetuwrabrumuy]

This is why I am such a big proponent of scrip.

http://en.wikipedia.org/wiki/Scrip

Scrip is legal in the US, and a modern version of it could, at a local level, be invaluable in keeping markets functional, maintaining asset and commodity (including gold and silver) value, and even keeping local government essential functions (police, fire) operating.

It just needs an organization that is trusted, and “buy-in” from retailers and the public that uses it.

It is a controlled market, so no inflation or deflation, can have respectable encryption security, even a scheme to prevent hoarding. Indirectly it can provide supplies that are not produced locally, like pharmaceuticals, at a lower price by bulk purchases.

I strongly encourage gold and silver investors and preppers to study up on scrip, as a huge insurance policy for what they are doing.