Home Precious Metals

What situations could lead to gold & silver being used to buy things?

Let me elaborate my question a bit more here.

I’m curious if there are any situations where society (state, national, global etc.,) would return to using gold & silver in daily transactions rather than cash & credit cards like we do today?

For most of human history people have bought things with silver and gold and sold things for silver and gold but only very recently has the world stopped using them as currency.

I’ve seen these “goldback” notes (this one is 1/20 troy oz) being sold by places like JM Bullion & APMEX and it seems like they would be great if society reverted back to gold & silver.

Although they would need to be priced way cheaper since right now you’d end up paying $4,000/oz to do it that way.

Do you think we’ll ever return to gold & silver as money?

Comments

  • JBKJBK Posts: 9,865 ✭✭✭✭✭

    The world has moved away from this. As far as I know, no country issues circulating coinage with gold or silver in them, or issues currency directly backed by precious metals.

    You can always barter with gold or silver in any form. Such transactions would increase if an economy and/or currency were to collapse.

  • MKUltra24MKUltra24 Posts: 299 ✭✭✭

    @JBK said:
    The world has moved away from this. As far as I know, no country issues circulating coinage with gold or silver in them, or issues currency directly backed by precious metals.

    You can always barter with gold or silver in any form. Such transactions would increase if an economy and/or currency were to collapse.

    Oh I know the entire world stopped using gold & silver decades ago.

    I’m just curious if there are any situations that would result in our global society returning to a gold & silver currency.

    It’s like gold & silver have been used for thousands of years and in the last century we stopped using it but could it ever return?

  • JBKJBK Posts: 9,865 ✭✭✭✭✭

    Governments like issuing and spending money they don't actually have. You can't do that if you use gold or silver for making or backing money. ;)

  • rickoricko Posts: 83,311 ✭✭✭✭✭

    Perhaps if there were a global disaster, on a scale such as wiped out the dinosaurs or larger. If all governments and most of the people were decimated - then, current currencies and systems would be obliterated and survivors would begin with barter and eventually resort to precious metals again. Not a pleasant scenario. Cheers, RickO

  • GoldenageGoldenage Posts: 1,394 ✭✭✭✭

    None. Not enough people have it for world governments to use it.

  • TwoSides2aCoinTwoSides2aCoin Posts: 42,106 ✭✭✭✭✭
    edited July 18, 2021 6:29AM

    In some circles, that's the only thing used for trade and bartering. I have a customer who buys silver. I asked if he stacks. He said "some". "I barter( using silver as payment) for goods and services with those who've adopted this metal as real money." ( short answer: Yes, those situations) )

  • blitzdudeblitzdude Posts: 3,704 ✭✭✭✭✭

    Probably if you go hang out at derbys bunker after the global collapse occurs he will trade ASEs for bags of Cheetos. Rgds!

  • streeterstreeter Posts: 3,249 ✭✭✭

    Ole derby has a sign on his door.

    We retain the right to refuse service to anyone.

    Have a nice day
  • jmski52jmski52 Posts: 20,948 ✭✭✭✭✭

    I’m just curious if there are any situations that would result in our global society returning to a gold & silver currency.

    Confidence in gov.com and the currency would have to be pretty close to nonexistent. We seem to be headed in that direction.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • TwoSides2aCoinTwoSides2aCoin Posts: 42,106 ✭✭✭✭✭

    International travel, baht I digress.

  • WCCWCC Posts: 1,432 ✭✭✭✭

    @jmski52 said:
    I’m just curious if there are any situations that would result in our global society returning to a gold & silver currency.

    Confidence in gov.com and the currency would have to be pretty close to nonexistent. We seem to be headed in that direction.

    It will take more than just this, depending upon where someone lives. In the US, all or at least most of Europe, and a few others at minimum, the government would have lose its power to preserve its money monopoly.

    Otherwise, it's temporary or "at the fringe". It won't be accepted for tax payments, most debt repayment, and gold is impractical for most retail transactions.

  • MKUltra24MKUltra24 Posts: 299 ✭✭✭

    @WCC said:

    @jmski52 said:
    I’m just curious if there are any situations that would result in our global society returning to a gold & silver currency.

    Confidence in gov.com and the currency would have to be pretty close to nonexistent. We seem to be headed in that direction.

    It will take more than just this, depending upon where someone lives. In the US, all or at least most of Europe, and a few others at minimum, the government would have lose its power to preserve its money monopoly.

    Otherwise, it's temporary or "at the fringe". It won't be accepted for tax payments, most debt repayment, and gold is impractical for most retail transactions.

    Why are precious metals impractical for retail transactions?

    Anything under $200 would be easy to pay for with say 8 1oz silver coins.

    Anything over $200 could be paid with a mixture of gold & silver.

    If I bought a meal I might pay 1 silver coin.

    But if I bought something expensive I might pay one or more gold coins.

    Easy Peasy!

  • PerryHallPerryHall Posts: 40,328 ✭✭✭✭✭

    If gold and silver coins began to circulate as money, merchants would have to learn how to detect counterfeit coins. In the olden days, merchants would have a counterfeit detector next to the cash register to check any gold and silver coins. These devices are simple balances that check the weight, thicknesses, and diameters of the silver and gold coins.

  • cohodkcohodk Posts: 16,876 ✭✭✭✭✭
    edited July 22, 2021 3:42AM

    @MKUltra24 said:

    @WCC said:

    @jmski52 said:
    I’m just curious if there are any situations that would result in our global society returning to a gold & silver currency.

    Confidence in gov.com and the currency would have to be pretty close to nonexistent. We seem to be headed in that direction.

    It will take more than just this, depending upon where someone lives. In the US, all or at least most of Europe, and a few others at minimum, the government would have lose its power to preserve its money monopoly.

    Otherwise, it's temporary or "at the fringe". It won't be accepted for tax payments, most debt repayment, and gold is impractical for most retail transactions.

    Why are precious metals impractical for retail transactions?

    Anything under $200 would be easy to pay for with say 8 1oz silver coins.

    Who is to say silver would be worth $25/oz? To the "counter party" ;) it might be valued at $1000 or zero.


    Excuses are tools of the ignorant
    Knowledge is the enemy of fear
  • CoinHoarderCoinHoarder Posts: 998 ✭✭✭✭✭
    edited July 23, 2021 12:48AM

    .

  • metalmeistermetalmeister Posts: 4,409 ✭✭✭✭✭

    Our World is now using 000's and 111's. ......... But, I can take a brick of silver down to my friendly bullion dealer and get a check to pay bills.

    email: [email protected]

    100% Positive BST transactions
  • BaleyBaley Posts: 22,578 ✭✭✭✭✭

    It would be a very strange world in which gold and silver wrer universally preferred as barter for goods and services instead of cash, check, debit, or credit. So weird and unlikely, it's difficult to imagine, without additional very drastic changes like total anarchy, extreme violence, and intense danger.

    Liberty: Parent of Science & Industry

  • Downtown1974Downtown1974 Posts: 5,852 ✭✭✭✭✭

    I can’t think of any scenario where PMs would return as a form of payment in everyday commerce. Even in a semi-apocalyptic event.

  • MKUltra24MKUltra24 Posts: 299 ✭✭✭

    @PerryHall said:
    If gold and silver coins began to circulate as money, merchants would have to learn how to detect counterfeit coins. In the olden days, merchants would have a counterfeit detector next to the cash register to check any gold and silver coins. These devices are simple balances that check the weight, thicknesses, and diameters of the silver and gold coins.

    But if the Ancient Greeks & Romans could do it I’m sure we could too.

    In Ancient times counterfeits were frequently made.

    Here is an example of the reverse of a fake Julius Caesar denarius made in his day with the copper core showing even though at that time it was supposed to be a high purity silver coin.

  • derrybderryb Posts: 32,141 ✭✭✭✭✭

    I occasionally buy dollars with my gold and silver, but only when they are on sale.

    And I'll likely buy the dollar's replacement with my gold and silver. Currencies self destruct, not silver and gold.

    Conspiracy Theory: Deduction based on logic before it become based on fact.

Sign In or Register to comment.