What is Money?
The proper definition of money is:
- Something that functions as a medium of exchange
- a store of value.
Government paper currencies can, and currently do, function as money.
But, even Aristotle realized that good money must be all of the following:
- Durable: A good money shouldnít fall apart in your pocket nor evaporate when you arenít looking. It should be indestructible. This is why we donít use fruit for money.
- Divisible: A good money needs to be convertible into larger and smaller pieces without losing its value, to fit a transaction of any size. This is why we donít use things like porcelain for money; half a Ming vase isnít worth much.
- Consistent: A good money is something that always looks the same, so that it's easy to recognize, each piece identical to the next. This is why we donít use things like oil paintings for money; each painting, even by the same artist, of the same size and composed of the same materials, is unique.
- Convenient: A good money packs a lot of value into a small package and is highly portable. This is why we donít use water for money, as essential as it is. Just imagine how much youíd have to deliver to pay for a new house, not to mention all the problems youíd have with the escrow.
- Intrinsically valuable: A good money is something many people want or can use. This is critical to money functioning as a means of exchange; even if I'm not a jeweler, I know that someone, somewhere wants gold and will take it in exchange for something else of value to me.
What is NOT money?
- Scraps of paper for money, no matter how impressive the inscriptions upon them might be.
- Anything "contract" without an original signature.
- Any "note" without any "redeemable" silver or gold.
- With the exception of "faith" (that can fade fast): Stock, bonds, contracts, ETFs, partnership interest, notes, loans, credit cards, debit cards, prepaid cards, gift cards, bank account, CDs, investments, safety deposit boxes, promises, insurance, etc. There are thousands of examples of crashes all caused by "loss of faith".
Keep in mind that "paper" includes stocks, bonds, credit, ATM machines, wire transfers, debit cards, and "promises to deliver" items like silver and gold. Already, paper currency is gradually getting eliminated by governments in favor of debit cards, credit cards, and other media of electronic transfer. Governments prefer making anything you buy or sell a matter of permanent record. This allows for more taxing, more control, and the elimination of privacy.
Time and time again, countries of the world created floating value in the form of paper or common metal coins that eventually crash. Eventually, they flooded the society with so much of their "valuable" currency, that it was not very rare or valuable anymore. Even the US Dollar has crashed (COMPLETELY) THREE TIMES in less than the last 250 years!
When their money was no longer "valuable", silver and gold again became the preferred medium of exchange for many.
Because of so many examples in history, almost all preppers include food, personal protection, medicine, and safe places to hibernate, as well as silver and gold. Eventually, as history teaches, society demands that silver and gold, as well as food and medicine, are required as a basis of exchange.
Silver and Gold
Silver and Gold are uniquely qualified for use as money. No other substance meets those five characteristics so well.
Goldís main use has always been as true "money". Additionally, gold is critical to many medical solutions, electronics, jewelry, dentistry, and more.
Innovation of critical metals allows for many high-tech inventions. For instance, of the 92 naturally occurring elements, gold has the most resistance to chemical reaction, it's the most ductile, the most malleable of all the elements, highly reflective, and an exceptional conductor of both heat and electricity.
Silver, often is the only metal that can be used in certain health and medical solutions. Silver, also costs less than gold, has thousands of industrial and electronic uses. As for money, silver can easily be used as money for smaller purchases or exchange.
There are lots of advantages to silver and gold as money.
- Silver or Gold is the most private kind of money.
- Silver and gold coins, unlike paper currency, don't even carry serial numbers.
- Gold and Silver are truely "private".
- At current prices, it's more portable than cash, even in the form of $100 bills.
- Gold or Silver do not retain traces of drugs, as does paper currency.
- Gold and Silver are less liable to arbitrary confiscation.
- Gold and Silver are much easier to authenticate than currency.
Itís not just that cash will become less valuable or be harder to use. People wonít want paper money when it goes down in value. The world will (again) return to silver and gold.
- Remember that the (Federal Reserve Note) dollar is literally an ďIOU Nothing.Ē
- There are over 300 "listed owners" for every delayed delivery of physical silver and gold.
- Banking laws require silver & gold within safety deposit boxes to be kept by the bank.
- The FDIC insurance is less than 2% of reserves for amounts guaranteed.
- Since December 2014, banks are not holding your deposits, but are "owners" of the deposits.
- The government exists because of taxes. It's impossible to get taxes from the unemployed or the poor.
- Since only small amounts of precious metals exist, Silver & Gold are most likely to be more valuable.
- BROKE, EMPTY, CORRUPT, AND BANKRUPT:
- Social Security
- Highway Trust Fund
- Indian Trust Fund
- Federal Reserve
- VA Hospitals
- Education Department
- Federal Budget
Hereís the bottom line:
Many people say, "have a portion of your net worth in silver and gold".
Best bet: "Kilver CoinCard"