Gold as currency. How does that work?

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Farmimator's picture
Farmimator
Status: Member (Offline)
Joined: May 16 2011
Posts: 10
Gold as currency. How does that work?

These may be very basic questions, I hope they haven't been answered elsewhere and I missed them.

It really feels like some kind of big shake-up is imminent.  Some kind of Government based currency thing.  Not global meltdown but a definite dip on the rocky road to our more modest post-carbon future.  I'm going to start withdrawing cash from my bank - not that I carry much in there, it's always empty by the end of the month.  But for the first time ever I'm considering buying some actual gold I can hold in my hand.  Not as an investment per-say but as a hedge against the fiat currency going bust.  

What is the day to day usefulness of gold though?  I couldn't go to my neighbor and get him to weld something for me and give him a shaving of gold because he'd have the same problem as me - how to turn that gold into REAL stuff:  Food, clothes, fuel, etc.  Presumably it would take a massive crash for gold to become relevant as a trading medium.  And the assumption is that since gold HAS been used as a trading medium for time immemoriale it will be again?

I also grow a lot of food - I'm a farmer - is food just as good as gold in terms of a reasonable trading medium?

How would people reccommend a person buy small quantities of physical gold?  Like convert $300-500 a month into metal and slowly build it up?

Carl Veritas's picture
Carl Veritas
Status: Gold Member (Offline)
Joined: Oct 23 2008
Posts: 294
 The 1933 confiscation and

 The 1933 confiscation and the punitive tax  imposed on gold is meant  to keep Americans from using it as money again.  

cmallende's picture
cmallende
Status: Member (Offline)
Joined: Apr 1 2011
Posts: 10
discount if paid in gold

I've actually presented a 2-5% discount on my remodeling jobs if paid in gold. Never thought it was illegal but I did get some curious replies. One client actually considered it enough to look into the conversion.

No takers yet I'm still trying

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