Recently, the prices of precious metals were seen to fall. It wasn’t a huge drop (it never is) but it was enough for people watching the market to buy up enough to stock up on their gold and silver.
This was because there is one principle in investing that has stuck throughout the ages: buy low and sell high to make a profit. However, there are some people who don’t realize that gold and silver are important additions to their portfolios until it is too late and they have to spend a lot more to buy gold.
A frequent question that is asked of many experts is one that troubles a lot of people with assets in the form of precious metals. The question is why trading gold and silver in an economy that makes use of the barter system a good idea. Would it be an accepted form of payment? How would this be done? All of these questions deserve a good answer, which will show just how advantageous an investment in even a small amount of gold would be.
A collapse is coming
When in a barter situation, the success of the transaction requires the delivery of the goods or services from both parties. This is true for any transaction in the present day as well. There is going to come a time in the life of you or your children where the dollar will drop in value till it is less expensive than blank paper. A total collapse of the global economy is just around the corner.
When this does happen, currency may lose its value but physical metal will not. In fact, using gold for bartering your essential items with can actually help you out like you never thought possible. There is a high chance that the precious metals we possess now could become the coin of the future, if all paper money were to lose its value overnight.
The golden rule of bartering
There is one rule you need to remember when a financial collapse does occur. If you have the gold, you make the rules. The person selling you the goods and services has to play the game according to the rules that you set down. Not the other way round. This is because you are the person with the hard currency that is being used to pay for what you are purchasing. You are the buyer, and you are in control.
You have to remember that this applies in any situation. Gold is perfect for bartering because it puts you in control of every single transaction that you make, regardless of who it is with or what it is for. You can decide on the value of the goods and services you are buying, not the seller. This is perfect, although you should probably stay honest for karma’s sake at least.
In the end, gold is definitely a good way for you to engage in the barter system without any fear of fallout or bad deals. However, giving it too much priority can result in a struggle to survive. When you are stocking up for a financial collapse, make sure you give gold and other metals second place when pitted against essentials like food and water.