We’re all so busy, rushing around from place to place in our
modern world that we forget things have not always been like this, and – if
history is any clue – things will not always be like this either.
Money makes our day-to-day life go forward, and most of us
handle most of our transactions these days electronically, or with
plastic. (Does anyone write checks
anymore?)
With even a simple blackout, most businesses are unable to
function. They couldn’t take your money
if they wanted to, because their registers are all requiring electricity.
With a severe blackout, credit cards would be useless,
though some merchant (and fellow traders) might accept paper currency. At least for awhile, regular coinage would
be accepted, because somehow tangible coinage in the hand will be regarded as
more “real” than a check or paper money.
If we were to fall into some long term breakdown (caused by
natural forces, or man-made causes, or some combination), life would still go
on and people will need some medium of exchange. And they will find some medium.
In the short term, coinage will work, even the “junk metal” modern
coinage, so it’s a good idea to have rolls of halfs, quarters, even dollars on
hand.
In longer term situations, people might demand silver,
meaning, pre-64 coinage from the U.S.
Copper and silver bullion pieces might work too, if you had the
foresight to purchase these when they were readily available.
Gold is always touted as the survival metal, and yes it has
stood the test of time because of its true rarity, and its incorruptibility,
and its intrinsic actual value.
Nevertheless, look at the current price of gold. Even if gold is “only” a thousand dollar an
ounce when you read this, how many of your daily purchases approach a thousand
dollars? Not many. Even if you had 1/10
ounce coins, how many of your daily purchases are around a hundred
dollars? Granted, some will be. But the 1/10 ounce gold coin is very small,
and easy to lose. It is probably a good
idea to have some, because you can pack a lot of value into a little piece, but
it’s not likely to be a coin of daily exchange in a survival scenario. Gold does better in “normal” times when you
can readily sell it on the open market for cash.
But because so many of use these days more and more use
plastic and electronics for paying bills, there is less and less hard currency
in circulation. That means that if we were to experience some sort of currency
collapse, coinage would disappear somewhat quickly. What then would people use
for trade?
Again, we look to the past for clues. Anyone who lived through WWII, or any of the
other “small wars” all over the world, knows that basic commodities that
everyone uses go into short supply.
Food, coffee, medicine, toilet paper, fuel, etc. The items of everyday use become the items
that everyone wants and needs, and these become tradable when the dollar
dies. Tradable items might also include
sewing kits, first aid supplies, beer and alcohol, seeds, and maybe ammo. Ammo makes a good trade item because it has
different sizes that you barter about, but in the real world, most people want
to keep their ammo, so other consumables will be highly sought as trade.
Use your imagination, and experience.
SOME ADDITIONAL COMMENTS FOR COIN-LOVERS
I have always enjoyed coins. Not necessarily collecting, but learning about them, admiring
them, learning their history, taking time with them, getting to know them,
cleaning them, putting them into their right place in your collector’s book.
Coins have rich intrinsic stories, and learning each coin’s
history clue excites real collectors. Yes, perhaps some people make money with
coins, and that was part of my early interest in coin collecting as a
hobby. You aren’t collecting buttons or
bottle caps, but something that has a universally-acknowledged value. At the
very least, coins are never worth nothing, and do not fall below their face
value.
Like most collectors, I started with pennies, because
pennies were cheap and you could buy rolls for 50 cents, and search through
them for ones to fill the spaces in your book.
You learned real quick which ones were hard to get and rare: 1909SVDB,
1914D, 1931S, and perhaps a few others. Zinc pennies from the war were always
interesting, and it reminded you that wars affect the availability of
metals. Indian head pennies were
somewhat uncommon, and not necessarily valuable, but I always saved each one I
ever found.
Coins are great conversation pieces, domestic or foreign.
Everyone deals with coins all the time, so everyone is interested in at least a
few coins. Buffalo nickels are
universally admired, and have long been used to adorn hat bands and belts.
Everyone likes the real silver dollars that were so long a
part of American coinage, and visitors to Las Vegas back in the day would bring
home silver dollars to give away or to collect. Though only 90% silver, those beefy dollars reminded us that
there was intrinsic metallic value in the coins. They are still highly prized and only go up in value as silver
rises.
Some years ago, I operated a farmers market and would get
change for the farmers each week at the bank.
One farmer would consistently ask me to purchase rolls of half-dollar
coins for him. More often than not, the bank didn’t have them, even though they
are still produced. Because they are
not commonly used, most banks simply don’t stock them.
I asked the farmer why he wanted an “odd” size coin. He told
me that the main reason is that people remember him from spending 50 cent
pieces because they are not common. He
told me that people would often smile seeing them, and somehow that exchange of
a half-dollar cemented friendships. He also said that occasionally he still
finds silver coins.
I found that amazing, so I began to try it. When receiving a half-dollar coin, people
will feel it, hold it, look at it, and often smile, even laugh. “I haven’t seen
one of those for awhile,” they’d laugh.
I have had an occasion where someone thought they had
received a dollar coin, and tried to give me change as if I’d paid double. In
another case, as a joke, I told asked the person behind the counter if they
would accept “Hawaiian money” as I placed the Kennedy half-dollars on the
counter. “Oh, no, we can’t accept that,” said the worried clerk. I didn’t think I’d have to explain that
Hawaii was part of the U.S., and that I’d just made a joke, but the clerk was a
new immigrant to the U.S. who had never seen a half-dollar, and didn’t know
that Hawaii was part of the U.S. To my
amazement, I had to take back the half-dollars and pay with other money.
There was a coffee shop that I used to frequent, and I had
begun paying with half-dollars.
After a few days, I came again to the shop and the
proprietor asked me, “You were here two nights ago, right?” ”Yes,” I said, “how did you know?” “Because I found half-dollars in the cash
register,” the proprietor told me.
But another aspect that I found even more interesting is
that because half-dollars are not commonly circulated, you occasionally may find
silver coins in the rolls you get from the bank. One Christmas, I actually got several Franklin halfs and 1964
Kennedy halfs, which are 90% silver. I assumed that some boy stole his father’s
coin collection and spent the money, and the merchant who received it just took
it to the bank with all the other change.
Though 1964 was the last year that there was a 90% silver
Kennedy half, there was 40% silver in the halfs from 1965 through 1969. This meant they were worth more than face
value. If you know the spot price of silver, you can simply do the math to
see how much just the silver is worth in, say, a 1966 Kennedy half. Certainly more than 50 cents. But I’d collected so many of these 40%
silver coins that when I needed money to pay for a trip to Mexico a few years
ago, I sold them all for over 10 times what I paid for them, and paid for the
trip. That wasn’t a bad investment.
Coins (and paper currency too) tell the history of a
country, its politics, its ebb and flow of culture. I once had a Nazi silver
coin that I’d purchased at a coin show, but I found its “atmosphere” unpleasant
and quickly got rid of it. I am still a
bit amazed that Chinese currency retains the face of Mao, who was responsible
for the deaths of perhaps 100 million Chinese. But he retains a bit of a mixed
reputation among Chinese.
Sure, you can say it’s only pieces of metal, but they are so
much more. They are living pieces of history, bringing the past alive, and
giving you great conversation pieces.
And, equally important, if you’re ever broke, you can just sell your
coins, or barter with them when the valueless Federal Reserve Notes are no
longer accepted.