Survival Planning - Validity of Gold/Silver in Trade or as a Currency?

Received a comment from Jack regarding the validity of Gold and Silver as a currency,..."I have been buying in small quantities, and recently I have started buying in slightly larger quantities. Like you, it is not an investment, but a lifeline. I suppose you can call them one in the same depending on the situation at hand. The question still remains, however, will people (the average merchant) recognize, when the time comes, the silver or gold round as a form of currency. I have said in the past that the average urbanite or suburbanite will continue to use 'cash' until it is depleted. Only then will they be in a pickle. Thoughts?"

UrbanMan's reply: Jack, I'm sure you recognize that nothing is predictable. After all we are patterning our survival preps on movies, books and just possible events and how we see them impacting our lives and security. Substitute food or guns for gold and silver and I think you'll agree that PM's and their potential value is just another possibility that we have to plan for.

There are a remarkable number of small stores which now trade commodities for Gold and Silver, mostly silver, and most of that being in coins of a silver melt value.

I personally think that the "currency or trade cycle" after a catastrophic collapse will be paper fiat cash, then gold and silver, then straight commodities barter, then back to Gold and Silver. The interval between each in this cycle will be drivien by several factors: dependent upon the severity and type of collapse and the strength of the dollar when it happens; time of year as this affects food availability as well as the existing availability of food at the time of the total collapse; as well as each individual you are bartering with will have their own needs....could be food, medications, fuel, etc.

I think that everyone needs to keep some cash on hand. I keep $3,000 in 5, 10 and 20 dollar denominations in one of my gun safes as I envision a time when the banks are too hard or dangerous to get to, or they are closed (banking holidays), or the withdrawal limit is something ridiculous. There will be people accepting cash, albeit at hyper prices, well after most of us realize it is worthless as these people will think the government will make everything all better - hell, the government caused all this in the first place!

I am not advocating going broke buying Gold or Silver. What I am advocating is that complete Survival Preparations also consists of cash on hand and Precious Metals,...as well as stocked food, guns for security, equipment, supplies and material that will be necessary to survive in a degraded society, a Bug Out or Safe location and a plan. You can add developing a survival group to that as survival is a team sport. Be safe Jack.