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A Strong Case For Using Gold As Money, When The Fed Implodes.

Lets consider this;
Paper money, paper records of transactions, and all important paper transactions can burn, be shredded, or destroyed very easily.
Even computer entries can be deleted and destroyed very easily.

But Gold can only be destroyed by a mixture of certain acids.
Therefore, if a large transaction in Gold is done it would always be traceable if done correctly.
How you may ask?
Well, right now the LBMA { London Based Metals Association } keeps track of every 400 ounce Gold bar every time it goes in or out of a depository by the, one of a kind, serial number stamped right into the bar.
The practice is called," The Chain of Integrity".

I would suspect "ALL" Gold bars from reputable sources from one ounce Credit Swiss, up to the 100 ounce Gold bars used at the New York COMEX exchange, also have serial numbers stamped right into the bar, explaining weight, amount of Gold, and fineness.

Please let me give an example:
Lets say my Great grandfather, a successful business man, exchanged 10 ten ounce Gold bars for some real estate back in 1910.
Since Gold contracts are perfectly legal, to this day, a record of the transaction would have been kept at the local hall of records, in the general area where the transaction took place.

The buyer would get a paper record.
The seller would get a paper record.
The title company would get a paper record.
However, if the seller is smart, he would keep the Gold bars in the safest place possible after making a record of the numbers on the bars.
He then might consider insuring the Gold against theft by buying an insurance contract that would include the Gold bars serial numbers.

Now, lets say a flood, fire, or other natural disaster happened and destroyed all the stuff that is destroyable, including paper money, computers, etc in that town.

Chances are my Great Grandfathers Gold, if stored safely would survive better than anything else.

Didn't the ancient Egyptians write on Gold tablets that are still readable and useful today? Lets say these tablets were a form of money in ancient Egypt.

Can any paper money match that record?

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Why would an individual use

Why would an individual use serialized gold bars for transactions? Banks used them the same way they would use large denomination bills. Nobody wants to count a few million dollars in $20 dollar notes.

Coins are much more practical. For example, how would you make a small purchase with a ten ounce bar? Coins are actually "small bars" of a precious metal, with a government's stamp, guaranteeing the weight and purity of the coin.

Rather than using bars, you would use American Eagles: 1, 1/2, 1/4, or 1/10 ounce coins. You could also use Canadian Maple Leafs or South African Krugerrands. For even smaller purchases, you used silver coins. In fact, this is how we conducted business a hundred years ago.

There is nothing wrong with paper money, SO LONG AS IT IS REDEEMABLE IN REAL MONEY - gold and silver.

Hi Greg.

The coins you mention, except for the Krugerrand, have a face value in dollars stamped on them. The government purposely did that to discourage there use. Because the stamped amount is not the actual value.
Liberty dollar is trying to win a court case, where they used coins with dollar amounts stamped on them, and the treasury department raised a stink.

Whereas, bars have no stamped value and would be worth close to the world spot value in any kind of Gold for product or services exchange.

I'm just using the Gold above as an example, but Silver bars are made also and could be used for smaller amounts.

Credit Swiss bars are known and respected all over the world as international money, but not at our local supermarkets or gas stations.

beesting

I do not question the value

I do not question the value of gold as a storage of wealth. I personally have over 40% of mine in silver and gold bars, the rest is in land. I dropped all my dollars about 9 years ago when the dollar was trading twice as high to foreign currencies as it is now. What I am concerned about is a entity forcing me to use a specific currency as a medium of exchange, whether that currency is paper, carbon, silver, gold, or sea shells.

I also agree that a medium of exchange that has some intrinsic value is much more desirable to individuals. Gold and silver have an intrinsic value and I would definitely use it as a currency if I could, but I do not want any laws forcing me to do so. This is usually when the Monopoly creeps in. It is possible to control a limited market where as a free market is impossible to control.

Allowing Gold and Silver to be used as a medium of exchange again would be a great blow to the International Money Power. They would no longer be able to reap the windfall in profits achievable through paper fiat. They would be weakened but not defeated, they will simply bide their time. Maybe waiting a few generations, using their skills in gold and silver manipulation, diplomacy, coercion, and war to achieve their Monopoly on Money once again. It only took one generation after Andrew Jackson took on the International Money Power for them to regain their throne.

Gold is not the silver bullet that will kill the beast. A chaos of currencies is through open competition.

Thanks for the response.

You wrote:"Allowing Gold and Silver to be used as a medium of exchange again would be a great blow to the International Money Power."
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Most people don't realize it but in private transactions, like the one I described with my Great Grandfather above, Gold, Silver, or any other medium of exchange is perfectly legal in the USA right now.

I have a copy of Dr.Edwin Vieira's booklet called Gold clauses and Silver clauses in financial transactions:

http://www.newswithviews.com/Vieira/edwin202.htm

In a private transaction there doesn't have to be a bank involved at all.
Of course the tax man would really like to know if anybody made a profit on the deal so they can assess some taxes, but in my opinion, especially if you're in Sweden, you might just forget to file that year.

beesting