Tuesday, November 5, 2013

List of Lists - Finance

Today I'm going to be talking about money and finances post-SHTF. It's very important to maintain some sort of ability to operate in an environment in which there is an economy based on money. While the economy in a post-SHTF world might not be solely based on money, such as a barter economy, it is likely that many people will still hold some value for "old world" money and be willing to accept it in trade for goods or services. While this is a short list, it may very well end up being the most expensive part of you list of lists.

- Cash ($1, $5, $10 and $20 bills)
- Coins (May still retain full value if currency has a full crash)
- Gold
- Silver

It is important to remember that all dimes, quarters and half-dollars made in 1964 or prior are 90% silver. $1 face value of these coins equals approximately .715 ounces of silver. These coins are often referred to as "junk silver", though the term is not meant in a negative way. I recommend focusing on silver if you are thinking of entering the precious metal market, unless you have an unlimited budget. The current price of one ounce of silver is approximately $22. The price of one ounce of gold, however, is approximately $1,400. Some other precious metals to consider are platinum and palladium, though these are similar in price to gold.

In a post-SHTF world, junk silver may be an excellent way to acquire needed supplies. These are much easier to sell and trade than a full one ounce silver coin, or any amount of gold for that matter. When you have silver that can be broken down into small amounts like a dime or quarter size, you have a much higher chance of actually getting your money's worth.

Considering that every single economy on earth that has ever been based on "fiat" currency has failed throughout history, and considering the fact that our economy and the economy of every developed nation on earth is based on fiat currency, it stands to reason that we should all be prepared for the day when the economic collapse arrives. Basing an entire economy on IOU bills is obviously not sustainable. Additionally, every time a problem arises, our leaders simply implement a fix that is only temporary and unsustainable itself. Once that temporary fix is no longer working, they simply put another temporary fix on that!

I am certainly not an expert on economics, but it doesn't take an expert on economics to see that this system will eventually fail. Once the large system fails, small, local economies will begin to pop up in towns and cities and counties. This short finance list will help you begin participating in these new economies.

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