In the unthinkable but not-so-unlikely scenario of social and economic collapse, gold coins will inarguably be the most spendable medium of exchange.

April 21, 2011 – In the unthinkable but not-so-unlikely scenario of social and economic collapse, gold coins will inarguably be the most spendable medium of exchange. It is not pleasant preparing for such an eventuality but as the dollar’s decline gains momentum it becomes ever more urgent.

Pundits have been hard at work downplaying the significance of the S & P downgrade of our economic outlook, which would be relatively insignificant for any country but the holder of the world’s reserve currency. It happened to Great Britain in 2009 but last year’s austerity measures led to a quick upgrade to stable. But any signs of austerity here are just wisps of smoke.

Of the 127 sovereigns that S&P rates only 19 are AAA, and of those only the US has a negative outlook, says Dave Kansas in the Wall Street Journal.

Nothing spells decline for the dollar – and the economy behind it – like being outperformed by a growing number of minor currencies. The Paraguayan guarani, Mauritian rupee, Hungarian florint, Czech koruna, Russian ruble, and Colombian peso have beaten the dollar by an average of 25% and the peso has outgunned the greenback by 44%, says Eric J. Fry, Agora Financial’s Editorial Director.

As gold continues crossing one barrier after another the most important issue to consider is not whether to buy gold but where to keep it. No further proof is necessary that the government exists for its own preservation and that of those who bankroll the politicians. When all else fails it will raid large stores of gold wherever they exist.

While gold ETFs make investing easy, in all likelihood investors would be left with nothing but worthless paper should panic strike. Gold still in the ground would also be of little use. Only physically held gold, safely stored but within easy reach, will make the difference between wealth and poverty.

For that gold coins, with their universally recognized gold content and convenient size, have no equal.

Kevin Johnson

Senior Staff Writer – GoldCoin.net