December 15, 2012 at 12:34 pm #17630
I just read Rob´s last report on gold and he insists to hold some gold coins as pocket money. I understand that if we ever get to a Guns&Cans Scenario to have some “pocket money gold” will be helpful. I am a naive gold investor and I have one question:
Why not just hold one ounce gold bars instead of one ounce gold coins?
Are coins better for any reason?
Gracias.December 17, 2012 at 10:33 pm #27300
One of the reasons I can think of is that coins do not have serial numbers and are therefore not traceable (to you). In rotten times when black markets flourish governments usually come up with all sorts of counterproductive measures and regulations (curing the symptoms, ignoring the cause), screwing you along the way.
Hypothetically, in times of severe civil strife, government prohibits precious metals from being currency, trying to maintain monopoly on its paper that is being printed by the hour. In that situation, it is one thing to buy food with gold from local farmer you trust, and completely another thing to buy (by that time possibly outlawed) guns and scarce ammunition from total strangers so you can protect yourself and yours.December 19, 2012 at 2:40 pm #27302
I would say small denomination gold coins like 1/4 OZ or 1/10 OZ.
In 1945, when there was not much to eat in post war Austria, my mother traded a small barrel of pigs fat for a few Swiss franc gold coins from a farmer. This made quite a difference for us. Don’t think a gold bar would have been as useful.December 20, 2012 at 1:57 pm #27303
Thanks for your replies.
I get two valuable advices for my pocket money gold:
# 1 Avoid serial numbers
#2 Try to get different denomination (sized) coins.January 4, 2013 at 5:23 pm #27007
If I understand things correctly, gold coins that have US mint denominations (the fifty dollar gold eagle as example) are already legal tender and can be declared as such at face value. So if you cross a border and you have a one ounce gold eagle, you can declare it at its fifty dollar face value and it has to be treated the same as a US fifty dollar paper bill. A one ounce bar of bullion is just gold and could be seized as such trying to cross a border that didn’t allow the importing of gold. If my understanding is correct (yes it is a strange world) that is another reason to have not just gold coins or bars but to have coins that are official money at their face value and from a government mint.
If I’m wrong, someone please correct me. At a gut level feeling, if we get to the point where we are using gold as actual money then hand guns and ammunition will also be “gold” and people should consider getting them now while they are still able to. I am not a big fan of guns…and they are not always the best weapon for self preservation (different from self defense)…but in the middle of the night if a small mob is trying to break down your front door, a gun can be very useful in changing their minds.
John IrelandJanuary 7, 2013 at 3:23 pm #18020
Gold bars are relatively easy to counterfeit. Gold coins less so, especially small denominations where the value (and profit in counterfeiting) is less. Many gold coins are relatively universally recognized and accepted. Gold bars are foreign to most people in the Americas and Europe.
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