If you’ve been wise to currency deflation and have chosen to trade paper currency for physical property with inherent value, such as gold, silver, platinum, palladium and other commodities, if and when we hit a “currency crisis”, how do you use these in common trade? How do you take this down to the grocer and trade silver for your weekly groceries?1 It takes an education, a bit of preparation, prior notice, and a willingness to find a merchant or service provider that’s smarter than the average monkey; and you might need to educate them. I can tell you, “financial literacy” is not a wide spread pandemic.
I have had my eye on fiat currency, or “bills of credit” issued by fiat or decree, for over a decade. I took an interest in how prices over my lifetime only seem to go up rather than down. “If price inflation is real, shouldn’t the opposite be price deflation?… a yin and yang thing? The short answer is “yes”, but the powers who run the banking cabal, who “rig the game” to solicit value from every man, woman, and child as a stealth tax, won’t willingly allow the current, which benefits them, to flow back upstream.
Is Barter Legal?
Are such activities as this “undermining” the currency of the United States? If anyone has undermined the currency of the united States of America, it is the Federal Reserve, its international banking connections, and those that invited them illegally to their present seat at the economic table; which they never had the authority to do. Barter is classified as “trade”, which you are free to do in “private”3 rather than the public realm of “commerce”
The Federal Reserve Note is a “bill of credit”, and they’ve been printing them by the billions with no backing of anything of value except the promise to tax the people of the united States in the future. Bills of credit are unlawful in the United States of America as expressed in Article 1, section 10 of the Constitution for the united States of America.
No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts…
Article 1, Section 10; Constitution for the united States of America.
And for good measure… pun intended:
Deuteronomy 25:15 “But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have”
Leviticus 19:36 “Just balances, just weights, a just ephah, and a just hin, shall ye have”
Ezekiel 45:8-10 “…my princes shall no more oppress my people… remove violence and spoil, and execute judgment and justice, take away your exactions from my people, saith the Lord GOD… Ye shall have just balances, and a just ephah, and a just bath.”
Luke 6:38 “Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again.”
Those that have undermined the people’s means of value in trade are responsible for the corrupt deed. They are “weighed in the balances, and art found wanting” (Daniel 5:27)
It must end eventually, as from my perspective, they seem to fight against God. Their time is short as evidenced by their debts outweighing their credits, the number and value of their short positions outweighing any feasibility to cover, and the greater public becoming wise and driving purchase prices up out of reach making settlement all but impossible. The only move they have left is to blatantly and brashly “change the rules”… which in an environment of financial uncertainty, such cheating is likely to cost them their lives in “the madness of crowds”.
Possession is… 90% of the premium (if not more).
The first significant factor is property. While possession may be nine-tenths of the law, in an economic climate of hyper-inflation, it’s a factor of increasing rather than decreasing purchasing power. There is no more important factor in this trade. If you have gold or silver, you hold real property with an inherent value2 to trade “in your pocket”, and the currency everyone else is using is losing value faster and faster, day by day. If in such an environment the value of silver or gold is going up faster and faster, day by day in comparison, what is the real value of what you “have in hand”?
You then are dealing from a position of strength; of supreme foresight. Remember, with fiat currency, you are not “paid” until you go to the merchant, the grocer, the gas station, and trade “currency” for something of value (property)… until that time, the “one-dollar Federal Reserve Note” functions only as “debt owed to you” by someone willing to accept it as (rather than lawful money) “legal tender” in the payment of debts. “Tendered” is an offer to put off settlement of value until a later date; since you’re trading debt instruments or “receipts for value” for goods and property.
By comparison, “cash-in-hand” is rather potent. It’s not uncommon as the metal’s market gets thinner with higher demand that delivery of metals is delayed by several days to a few weeks. So, standing there, willing to trade, with “cold hard cash in hand” is a monumental feature of your side of this trade! The silver or gold the grocer or service provider takes in hand today will likely increase in value for the merchant in coming days.
Cash-in-hand is king!
Second, reach an agreement with your merchant or service provider on the common ground. Agree upon several bullion dealers acceptable to both parties for today’s prices, premium levels, availability, and delivery schedule. The day’s spot price on the commodities exchange is a factor shared in common and easily referenced on the net, however, the premium you’ll pay for an ounce of silver or gold depends on it’s form and the dealer from whom you buy. Comparing three common dealers on the day and negotiating for the form you are offering is fair for both barter positions. Premium cost should value your “cash in hand” equal to or just over or under the average price to acquire the same item on the open market today. The grocer is getting real money in trade right now. In such a economic situation where this becomes a viable option, “cash-in-hand is king”.
For example: Let’s assume today’s spot price is $25.00 for one ounce of .999 fine silver on the commodities exchange and we are offering to trade one-ounce silver rounds (not sovereign coin) for groceries. We may have found similar one-ounce rounds at $28, $30, and $32 each from separate dealers placing our average acquisition price at $30/oz.; or more accurately an average premium of $5/oz, the day’s spot price being common among the bullion dealers. The grocer might argue the cheaper price, but having it in-hand compares to IF the dealer in question has it in stock, and IF they didn’t have to drive across town to retrieve it, or worse IF they must ship it; therefore add delays and travel and/or shipping expenses to the grocer’s end of the bargain. The more reasonable premium per ounce is for a particular dealer, the less likely they are to have inventory in stock. To net such a deal, the merchant may await delivery for weeks. Meanwhile, there you stand, “cold-hard-cash in-hand”! Are you beginning to see the strength of your position?
A few online dealers to familiarize yourself with the process:
apmaz.com sdbullion.com goldsilver.com jmbullion.com
(not a recommendation; I see no compensation or commission from any)
apmaz.com is family-owned, local to Phoenix; and I’ve done business with them.”
The bargaining comes in how much consideration are you willing to give the merchant or service provider on the premium per ounce. If you planned ahead, set significant portions of your “wealth” aside for months and years at a time waiting for the day it would pay off, there’s no requirement that you are overly considerate with a split on the dealer’s premium! If available stock is rare and delivery of the form in question is delayed by weeks, 120% of premium with “cash-in-hand” is not “unfair”. The grocer gets real money today without delay in reach of today’s price as agreed with the value likely to increase soon. Don’t give away the farm… The shopper with silver nets the benefit of buying silver at cheaper prices months or years before, netting the benefit of their advanced planning, and better education versus third-party risk of holding fiat currency. Does the grocer or gas station proprietor offer you their goods at cost, or have they added an amount of margin or profit? What a revelation…
The form of your metals is the next variable. Some forms like U.S. Gold Double Eagles or Canadian Maple Leaves demand a higher premium. Instantly recognizable as national coinage, these can be carried across national borders without incurring a tariff as a “commodity”. In general, sovereign coinage bears the highest premiums per ounce, and large plain bars from reputable minters in the “secondary market” the least premium per ounce.
The secondary market’s inventory consists of units that were bought new from the mint through a bullion dealer and sold back to be offered to subsequent buyers. Work with reputable dealers that you trust so that you are sure secondary market metals have not been tampered with.
In previous years I have purchased silver with premiums as low as $1.00/oz. on 100-oz bars. Here in March of 2022, the premium on similar stock, serial number bars from a reputable mint, is $4.00/oz. The 1 oz. Silver Eagle average as this is written is $15.66 over spot, or $40.68 each with the U.S. Mint out of silver blanks and not planning to mint again until 2023!
Another way to look at this is how much paper in dollars you can convert to a commodity per dollar. With large sums of money, a $125 per ounce gold premium may convert $2035 worth of “value decreasing paper” to “value increasing gold” at 6.1% or $0.06 per dollar. (prices approximate for March, 2022)
The True Cost
Comparing what you hold in hand to what a merchant might acquire by other means comes down to this:
- spot price (market) is universal at a given time
- dealers each set their own unique prices
- agree on dealers for comparative value
- elapsed time invested for merchant to retrieve?
- is dealer willing to deliver?
- is the inventory available today (now)?
- amount of elapsed time to delivery?
- what are the accumulated expenses to acquire?
- are there delivery charges?
- are there insurance charges?
- what is the value likely to be once in hand?
- no trade possible while awaiting delivery.
“Cash-in-hand” begins to take on a unique value in an economic environment where trading in commodities as “real money” becomes a viable option.
Making change
The final consideration is how much of your “billed value” is covered by your ounces, and how much weight in ounces does the merchant owe you in “change”. Do not allow the merchant to issue you a “bill of goods” by listing your change as currency or dollars; that defeats your whole purpose of such planning and forward thinking. The merchant receives ounces today that are likely increasing in value. Expressing a receipt for change in any denomination other than ounces is simply an offer to rob you of your wealth. If the merchant doesn’t understand this position, attempt to explain it. In the event they’re stubborn, take your valuable consideration to a merchant with a better understanding, more altruistic intent, and more sincere interest in keeping your business. Leave them with your calling card and a comment to “call if they have a change of heart”.
The easiest way to reconcile the value exchange is for the grocer to issue a receipt expressed in “ounces” or “grams” which the buyer can negotiate with them on some later date at that later date’s spot and premium values for that form of metal. Be certain such a receipt expresses the form, such as “U.S. Silver Eagles” or “1 oz. Silver Bars”, and the weight which remains in change, a receipt which you can exchange on your next visit for similar weight and form set for market values of that future date. It’s not a bad way to guarantee repeat business; yet another advantage to the merchant or service provider! You might also consider moving the premium split you negotiated to absorb miscellaneous change up or down to an even number of ounces which is easiest to do when the weight and billed value are close.
Agree on your terms before you shop. Don’t go to the service desk with a cart full of groceries and ask them to restock inventory if or when you can’t agree on terms; that’s no way to make friends or maintain good trade relations!
Also, heading to the grocery store with ounces of gold coins in your pocket is overkill; a bit like picking your teeth with a pneumatic jack-hammer. Pick the right tool for the job. If, however, you happen to be in such a strong financial state, making a deal on a car for thirty or forty gold sovereigns might net you a significant discount!
[featured in the dp Newsletter, March 25, 2022]
Convert tangible property into dollar values (prices), allow seller and buyer to “agree on the terms of the trade”, and negotiate a balance of “zero”. While this tool was designed for trading gold and silver as “real money”, you could use it to arrange trade and agree on value with any tangible property.
NOTES:
1 – Examples of prices for this post are given based on the date of publication with the metals markets presently in flux. It is likely the quoted prices as examples may change drastically in the near future. Bear this in mind while reading.
2 – If the bank-sters (gangsters of the banking sector) succeed in establishing a “digital currency”, realize that the above strategy will begin to apply to every type of real property. One of the key features of a universal digital currency is it’s “off switch”, or the control that allows its issuers to assign, “un-assign”, or restrict it’s use. If they don’t support your right to buy potato chips because they are supplementing your high blood pressure medication through “universal health care”, you won’t be “permitted” use it to buy potato chips. This will not create the control mechanism that they intend. It will only turn otherwise good people into criminals and outlaws. Such will drive people to create massive black markets where people use any value available to them to buy any “real property” they can; commodities and other goods that other people want so that they can trade them for potato chips. It becomes “cigarettes in prison”… The power-hungry oligarchs gaming the system to control everything you do and every decision you’re allowed to make are idiots.
3 – You can read more about the “private” vs. public organization of your affairs in my recent blog post.
