FEATURE ARTICLE

Silver as a Barter Currency

Silver as a Barter Currency
 
Tom Westbrook 
Date: 01-13-2010
Subject: Currencies

For all those interested in silver as a barter currency I have created a cheat-sheet to help assist you. The first is a pdf file based on a spot price of $18.32, which shows the silver content of U.S. circulated coins and the frn value based on the $18.32 spot price.
The second is the same, but in Excel format to adjust and recalculate the value based on a new spot price.

barter cheat sheet - pdf

barter cheat-sheet - excel

The problem is that silver coins are not denominated conveniently to be used as money. Clearly we cannot rely on the U.S. Mint to do its job of minting real currency, so I propose we do with what we have. When enough demand is generated, then private mints will come to meet the demand and create denominations that are more convenient (maybe they've done it already and I just haven't found it), denominations like 1/2 oz, 1/4 oz, and 1/10th oz coins. The other issue is the nomenclature by which we communicate with each other.

My Proposal:
People will notice that between the years of 1916 and 1964, one hundredth of an ounce of silver was approximately equal to 'one cent'. I suggest we go back to this 'standard', meaning 'one cent' refers to 1/100th of an oz of silver. This will allow us to use circulated U.S. currency for small transactions and interchange them with 1oz silver bullion. Rather than the value of the coin being based on what the U.S. Mint happened to print on its face, it would be based on the actual silver content.

Example:
A 1942-1945 Nickel has a silver content of .06 oz. We would consider this to have a value of 6 cents rather than its face value of 5 cents. A 1932-1964 Washington Quarter would be considered having a value of 18 cents and so on...

When selling an item say that is worth $1 (frn), then one could attach a label that reads '6¢'. When people pull out 6 fiat cents, then that's a good opportunity to say I don't take that debased stuff. If they still don't get it, then hand them a 'money masters' or 'debt as money' dvd and say come back and we'll do business when it makes sense (or however you choose to explain it).

This is just an idea, if others have other ideas or thoughts please comment.

more info at: coinflation.com

How about we "End the Fed" today? Here in Phoenix, Az we are going to make our first attempt, this Saturday. We are going to hold what we call a "Community Market Square" or barter day of sorts where people will be able to come and trade using silver (or whatever) as a currency.
 
Maybe we can "End the Fed" without ever casting a ballot :)

Silver:Copper:Nickel:


$18.32$3.33$7.97




Silver ContentCurrentNickel
DenominationDescription(100th oz) price ¢Value (frn)Exchange
$0.051946-2010 Nickel (silver equivalent)0.3 ₵$0.050.04“= 0.01 si”
$0.051942-1945 Nickel5.6 ₵$1.0320.82# Nickels
$0.101916-1945 Mercury Dime7.2 ₵$1.3326.76# Nickels
$0.101946-1964 Roosevelt Dime7.2 ₵$1.3326.76# Nickels
$0.501965-1970 Half Dollar (40% silver)14.8 ₵$2.71

$0.251916-1930 Standing Liberty Quarter18.1 ₵$3.31

$0.251932-1964 Washington Quarter18.1 ₵$3.31

$1.001971-1976 Eisenhower Dollar (40% silver)31.6 ₵$5.79

$0.501916-1947 Walking Liberty Half Dollar36.2 ₵$6.63

$0.501948-1963 Franklin Half Dollar36.2 ₵$6.63

$0.501964 Kennedy Half Dollar36.2 ₵$6.63

$1.001878-1921 Morgan Dollar77.3 ₵$14.17

$1.001921-1935 Peace Dollar77.3 ₵$14.17