Bartering: Another Reason to Hold Physical Gold & Silver

In the wake of Hurricane Helene, countless communities are facing a new reality where the basics-food, water, and gasoline-are hard to come by. Modern technology, including digital payment systems and even phone networks, have been rendered useless in several areas where infrastructure has collapsed. With supermarkets unable to restock due to supply chain disruptions and ATMs left offline, a return to basic, in-person exchanges are suddenly necessary. 

Whether or not precious metals can be used to barter in a situation like this is a question that our customers have often raised. Some have shared their stories of success. One example is a woman who always kept one gold coin in her pocket-a practice that got her home safely on one occassion when her money was stolen on a trip. She was able to quickly liquidate her coin for cash and pay for her passage home. Others have asked about the likelihood of bartering with gold or silver in situations very similar to what we are seeing now after Helene. Here's why it might be a good idea.

Why Precious Metals Are Ideal for Bartering

Precious metals, especially gold and silver, have served as currency for millennia. During a crisis like Hurricane Helene, when traditional currencies or digital payment methods may be unusable, having gold and silver coins can allow you to barter effectively for life-saving supplies.

1. Universal Value: Gold and silver are universally recognized as valuable, making them an ideal form of barter even among strangers.
2. Portability and Durability: A small coin of gold or silver can hold significant value in a compact form, making it easier to carry and trade. Precious metals are durable and can survive extreme conditions, unlike perishable goods.
3. Fractional Bartering: Silver coins, in particular, are useful for bartering small items such as food, water, and fuel. Larger denominations of gold can be used for higher-value trades. Having a mix of both metals provides flexibility when bartering for different types of goods and services.
4. Tangible Wealth: In an era where most wealth is stored digitally, holding physical precious metals can provide peace of mind. When the power goes out or bank accounts are frozen, having a tangible store of value ensures you have purchasing power when you need it most.

Considerations When Buying Precious Metals for Bartering

If you're considering setting aside some precious metals specifically for the purpose of bartering in a crisis situation, here are some key tips to keep in mind:

1. Opt for Small Denominations: Smaller denominations are easier to trade in bartering scenarios. Many silver coins are affordable and  widely recognized. Similarly, fractional gold coins, such as 1/10-ounce gold coins, can be useful for larger trades. 
2. Focus on Recognized Coins: Stick to well-known gold and silver coins such as American Silver Eagles or  Canadian Maple Leafs. These coins are easily recognizable and will be trusted by others when bartering. 
3. Consider Storage and Accessibility: Once you've acquired your precious metals, ensure they are stored in a secure yet accessible location. In an emergency, you want to be able to retrieve them quickly. You may want to split your metals between a secure home safe and another accessible location, such as a bug-out bag or another emergency preparedness kit.
4. Stay Informed: Keep up to date on the prices of gold and silver. While spot prices are directional, knowing the range that gold and silver and trading in will help make you a more effective negotiator when bargaining.  
5. Work with a Trusted Dealer: Make sure you're buying your precious metals from a reputable dealer. Check for dealers who have a long history of serving customers and have earned strong ratings and reviews. 

Final Thoughts

Hurricane Helene has shown us just how fragile modern conveniences can be. When the lights go out and supply chains falter, precious metals could offer a reliable form of bartering for the essentials of life. While no one wants to think about worst-case scenarios, being prepared with a small reserve of gold and silver could provide you and your family with the security needed to navigate through an unpredictable future.

This is just one of the benefits of owning gold and silver, but an important one. Still it underscores some of the essential qualities of gold and silver. They are a recognizable store of value. They are durable. They aren't easily devalued. They put you in control in a worst-case-scenario.