Comment: Reason 1. Gold and silver are

Reason 1. Gold and silver are currency and are not dependent upon the valuation of fiat paper money to be considered as a medium of exchange. While gold and silver are currently valuated in terms of fiat dollars that does not, in any possible rational way, devalue the monetary valuation of gold or silver in terms of monetary exchange. The point of owning both gold and silver, along with other hard assets, is to be able to use such assets during the time that the fiat monetary system collapses, particularly if that collapse is preceded by a hyperinflationary event, which is becoming more and more likely as time progresses.

At that time, it will be absolutely meaningless what the fiat money substitute valuation of gold and silver are, for the market will determine the appropriate price of goods and services in gold and silver. In other words, the “dollar price” will hold absolutely no meaning, nor will anyone care whether they paid $1000 or $10000 dollars for an ounce of gold at that stage of the collapse game. Again, the fiat price will be meaningless during such an economic dislocation. Thus your reasoning is completely and absolutely incorrect and is based on a linear understanding of money and pricing.

Reason 2. Again, you are making assumptions based on a particular understanding which, is based on your present understanding of the way things work when that might not be the case during a period of economic collapse. First, the market will, as it always has through thousands of years, provide for the services of minting coinage, but even at that there is no need for actual minting of coins since gold and silver are weighted values and thus the market will naturally determine an appropriate weight for a given product or service. Thus, your reasoning behind number 2 in your argument is also incorrect and flawed based upon your lack of market mechanics.

Reason 3. Is not even worth commenting upon, (but I will anyway) and is based upon something that simply cannot be successful under the circumstances of which we are speaking. Fiat currencies, in order to be introduced or maintained for any length of time, must ride “piggy-back” upon a know value otherwise there is not process of imparting value to the fiat currency regime. All fiat currencies that are introduced simply as a replacement for a failed fiat currency tend to fail extremely rapidly themselves because of the lack of confidence that already exists within society over the last failed fiat regime. Since such confidence is lacking there is no power to maintain the new introduced fiat currency within the society, thus if fails. Thus, your reasoning on number 3 does not take into account several things, one being the history of fiat monetary systems and the other being the mechanics of such systems as they relate to the political economy.

Reason 4. Well, that has nothing to do with how the market determines the monetary uses of gold or silver, particularly during a fiat monetary collapse. Additionally, since markets tend to become localized during such collapses they also tend to place valuation upon the given resources of that locale. Thus, your reasoning in number 4 ignores the market processes, which are not necessarily dependent upon a given currency and as such, the currency of a given locale will prevail during such a collapse. If there is no gold or silver, for instance, some other valued commodity will eventually arise as a form of currency.

Your final suggestion is based on a total ignorance of what actually happens during an economic collapse, how markets arise despite government attempts to squash them, how gold and silver or other commodities displace the official failed currency as a medium of exchange within the market. While I agree that it is important to stock up on food, non-hybrid seed, ammo, and useful trade goods, I also know that it is equally important to hold an amount of gold and silver for the period that will precede the collapse, for it is during that period when people will, in fact, not only recognize gold and silver as the only viable means of exchange but it will always be recognized as a value in exchange for goods and services even after a collapse. Thus gold and silver will play an important role in the survival of anyone interested in making it though what will be the most trying period in our country’s history. To ignore these facts is to ignore thousands of years of market economics and monetary mechanics.