It will not necessarily take a financial collapse for your money to become useless. Money may also not have any value during an extended crisis. Though hyperinflation and a collapse of the bond markets will devalue the dollar to the point it is just simply paper. Many believe this will happen sooner rather than later.
Extended power outages can cause a financial upheaval as well. So many transactions are conducted by electronic means that you probably could not buy food at your local grocery store if they even had any. You would not be able to withdraw money from ATM’s, go into a bank or pump fuel because everything depends on electricity to run the computers and other machinery that makes lives easier. You may have money in your pocket but where do you spend it. You may be able to find a few people willing to take cash for some needed item but emergency supplies will become more valuable than any money you have in your pocket.
Gold And Silver
Some preppers believe in having gold and silver stockpiled to use for purchases when the country or world collapses. Gold and silver has worth but how much worth and having several pounds lying around may be a comfort to some but there must be an end game. For precious metal to have value there has to be a market and you would have to assume that the crisis will end and then once again paper money will be backed by metals. You cannot eat metal and convincing someone they need to take a coin or two for two dozen eggs may require some selling on your part. You know what the value would be, when or even if things return to normal but will anyone else. People will not know how to weigh it and value it, they would have to take your word for it and that is not likely to happen.
Bartering or Trading For What You Need
Currency during a crisis will be knowledge, food, medical supplies, tobacco products and alcohol. Just about, anything you can think of can be used by someone and that someone may trade a dozen eggs for that something.
It may be a wiser investment right now to spend some of your gold and silver on food and other items that people will need in a crisis. If the crisis is of such a magnitude, communities and towns will need to be rebuilt. This means food production must begin immediately. Seeds will be a valuable commodity; every town across the country will need seeds to begin growing their own food. What is more valuable giving a person a sack of flour or giving them the means to raise their own grain? You have to think of sustainability and renew-ability. Heirloom seeds will raise plants that produce seeds and this cycle is sustainable and renewable. This is your currency.
Invest in items that you may not use but others can. Alcohol will be currency; even today, people will steal to obtain alcohol. You can trade a bottle of bourbon for a medical kit, a bushel of potatoes or even a pair of shoes for your child. A carton of cigarettes may get you that heavy coat you need because the weather is cold.
There is nothing wrong with investing in precious metals to protect against the falling dollar. However, you have to keep things in perspective. During the early stages of any disaster food, water and other essential will be the new currency.
If you have a skill, it is currency. The country will need agriculturists and medical personal and people who can build and repair homes engineers and others. Trade a day’s work for a week’s supply of fresh fruits and vegetables growing in someone’s back yard.