What do yo u think is a proper bullion vs. junk ratio for SHTF seniario?

Is this not how things are today? Your money only has value because it could be exchanged for something else.

 

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In a SHTF scenario the guy with the guns will barter with you. But they are not going to trade guns for PMs and PMs for food and etc. It will be more like give me what I want and I'll let you live. Continue to do my bidding and I'll continue to let you live. Much like the Mexican village in the Magnificent Seven except Yul Brenner and Steve McQueen will not be around to save you.

 

To the question at hand, it's hard to say what the proper ratio should be. If you don't have any metals and are on a limited budget, then 100% in junk silver until you have a pretty good cache. Beyond that, I'd say a 60/40 (junk/bullion) ratio is a good place to start. If your main purpose is the buy coins for survival purposes, you definitely want to rely on the 90% junk silver since it can be easily traded for things you need.

A 1-oz gold bullion coin is simply too large to trade for everyday items. They're more for profiting from devaluation of the dollar and so forth. Both 90% junk silver/1-oz gold coins can help you profit but only the junk silver will be good in a SHTF scenario.

 

I mostly agree with you on this, exceptions being that silver has anti-bacterial properties in case you can't homogenize milk properly, or don't have a reliable water source, or need something hard and shiny that you can melt for some MacGuyvering. How about being able to give a woman a real ring? Survival requires procreation after all.

But yes, metals don't really come into play relative to a doomsday scenario until and unless after things settle down and new structures begin to take form in society. It is here when precious metals would be of considerable value, but you have to be able to get there.

There are other scenarios that could cause precious metals to climb in value/purchase power too that don't necessarily involve duress, but regardless I like to know that whatever happens it's not a cause of worry for me.


As to the OP's question, I have 90% bullion since that's what I know best. With junk silver you have to deal with not knowing the precise content due to wear, needing to know the metal ratios which isn't a big deal, but it doesn't seem realistic to expect everybody else to know that. Plus any numismatic value is essentially irrelevant. Also if you were to melt junk (which is illegal mind you) then you basically have sterling silver, that can be a pro or a con depending, but it's easier to add copper than remove it anyway.

I also have my fair share off lead. It's actually significantly cheaper than when the new president came into office, because at the time a lot of people were concerned about the 2nd Amendment. If you are in the market right now is a great time to buy.

 

So literally, doomsday means most die and possibly the ones who survive wish they were among the dead. There isn't anything you can do to prepare for such a thing. When the Doomsayers show up, you might as well enjoy the time left. Nuclear winter is one such possibility. (See either "The Day After", 1983 or "On The Beach", 2000 version)

So anything else that you could prepare for is going to be something not as severe as this. My guess is that it won't be total anarchy as there will be some sort of civil government formed, established or maintained, and for that to happen something will be setup as the currency. IMO, that is going to be gold & silver based just like it has been for 5000+ years of recorded human history. One thing you can count on, the Federal Reserve Note won't do you much good.

 

The most important assets in a SHTF scenario are people you can trust. TC

 

If the shtf, shiny trinkets with engravings of cute birds, politicians, furry mammals, mythical figures, liberties, and tree leafs will be worth nothing. Zero.

 

Numismatic value will take a dive but bullion value will not. Listen to the survival podcast episode 781. Guy from Argentina was interviewed. They had a nice, booming economy similar to the US. Most were living a nice middle class lifestyle. Then the currency started going down hill and they had an economic collapse in 2001.

The people that had bullion to trade did use it to trade with. He said he knew somebody that would cut links off of a silver necklace to barter for other things. They also converted their pesos into dollars as fast as they could as it was spiraling out of control. Of all currencies, the dollar protected them. As our dollar collapses, we won't have the same luxury of another currency to retreat to. Unless China's currency becomes the new world reserve currency. Then maybe we could convert to that to protect ourselves somewhat.

I think the bigger worry would be violent crime and securing clean water and food. If you did secure it, the people that didn't have it would try to rob you.

Another movie to add to the list is "The Road". Not for the faint of heart. I've seen a lot but I found that movie to be very disturbing. There is no explanation to what caused SHTF in that movie but you can see the aftermath. It isn't pretty. The main threat was armed bands of cannibals and the guy and his kid have to stay away from the road so they don't get caught. His only defense is a half loaded revolver through most the movie. The whole thing was a pathetic, disturbing struggle, with brief, fleeting moments of relief. In that scenario, all that was valuable was ammo. But that was total chaos and anarchy with very few people left alive. Not the highest probability for a SHTF scenario. An economic collapse is far more likely.

 

I'll have to look into this, sounds like a really interesting guy!

 

I have to agree that I do not believe total anarchy is in our future. I'm confident though that things will get worse before they get better. Do those of you reading this think it will be a recession, a depression, something worse? Could the Occupy movement be a signal that we have the potential for extreme civil unrest?

 

I think the civil war is enough evidence of that potential. It can and does happen. Hopefully not again while I'm alive.

To address the original question...mostly overlooked so far, I like pre '65 dimes as a potential easy trade item so I have enough that I think I'd be fine for weeks if not months. I don't really relish the idea of actually melting things or splitting coins in order to conduct normal transactions. Those larger might just be traded for dimes as needed in such a time of duress.