Quote of the day—Joseph T. Salerno

What is wonderfully surprising is the spontaneous emergence of a pure gold currency in a remote region of southeastern Venezuela around the towns of Tumeremo and El Callao. The region abounds with precious metal ores and has a long history of luring prospectors and miners seeking their fortunes. Today, however, many of the larger mines are controlled by the government military, which is battling local gangs and guerillas. Despite the violence and lawlessness, jobless Venezuelans from far and wide are flooding into the area to work in thriving illegal mines in exchange for payment in gold nuggets. As a result, gold flakes, which are peeled off raw nuggets with hand tools, have become the currency of choice in the region with prices for commodities and services quoted in grams of gold. Half a gold gram buys you a one-night stay in a local hotel, while a meal for two at a Chinese restaurant and a haircut will cost you a quarter of a gram and an eighth of a gram, respectively. The gold flakes are carried in people’s pockets—usually wrapped in the nearly worthless bolivar notes. While some shops are equipped with scales to weigh the gold flakes, most sellers and their customers have become so familiar with the flakes that they evaluate them by sight. For example, the barber and his customer who transacted for the haircut agreed that three gold flakes equaled the one-eighth gram price (approximately $5.00). Gold is also starting to penetrate the nearby cities, such as the regional capital Ciudad Bolivar, as stores in shopping malls gladly accept the gold in exchange for dollars from miners who are seeking to cash out.

Joseph T. Salerno
October 28, 2021
Venezuelans Turn to Gold Nuggets as the Local Currency Implodes
[From reading the article you can see how the use of other precious metals would also be a useful currency as well. Brass, steel, and copper jacketed lead would seem to be quite useful in getting and maintaining access to the mines and protecting private mints.

This may be coming soon to a country near you. Prepare appropriately.—Joe]


5 thoughts on “Quote of the day—Joseph T. Salerno

  1. Hyperinflated currency opens even established economies to barter, and gold is a good neutral trade-good. It’s durable, hard to falsify, relatively easy to verify, and there is inherent scarcity.

    Although, the first person who parks a metal-rich asteroid at the L5 point is going to flood the market with gold, platinum, etc, although the value is partly going to reflect the expense of moving gigatons of rock.

  2. Also, with as much copper and lead as there is in circulation already. Government doesn’t stand much chance in controlling the trade.
    Having worked at more mines than I can count. I can tell you 95% are out in the middle of nowhere. And there’s not enough government of any kind that can control them.
    Supplies rule the day. Unfortunately, most gold these days is extracted from sulfide ores that require cyanide leach/ autoclave. And are all heavy on the electricity/fuel side.
    Free gold is much harder to come by. And are more work than most can do.
    So, get what you can today. It will never be cheaper.

  3. Prepare accordingly indeed. I just bought a case of 7.62×39 and 750 00 buckshot. I plan to get another case of 7.62×39 and 250 buckshot.

    Might get another 5 ounces of silver too.

    My only problem is is I live in a city and a desert so I don’t have a lot of room for gardening and I don’t know how to do it.

    • Self sufficiency is way, way, overrated. As long as there is some form of economy, I plan on continued buying or even trading of goods together with a reasonable stocked backroom. It is not just gold and bullets that can be used as currency. Lots of goods can play that role (think Jack Daniel). Services will also still be in demand. Can you fix a broken gun, knife, …?

      Unless you live in a favorable climate AND have a large garden each year you will starve trying to garden. Same goes for other food sources. And you will need more than a garden. I remember a story my dad told about digging into a larder of fat to try to get a sausage to cook when he was a kid. Winter spring were the starving months. Animals on the hoof and live poultry are another choice if you have the land.

      • Indeed Chet. Our ability to bring in products from all over the world is what has kept the wolf from our door.
        No one goes it alone. Some form of trade is always necessary.
        My grandma was born and raised in a sod-house on the prairie. She also spoke of lean times in late winter, early spring.
        The garden my wife raised in the desert was a real treat. For everything. The bugs got more than a share. We would have starved if its all we would have had. Even in such a favorable growing climate.

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