Nick Italiano in Preparation

Precious Metals & Cash

A Prepper’s Perspective on Old-School Currency

In This Article

“You Can’t Eat Gold”
A Currency That Has Stood the Test of Time
“Gold Is Too Expensive”
“Nobody Will Want Gold If SHTF”
Security
How to Tell If Your Gold Is Real
Lessons from the Airport Bribe
About the Author
Read More From Issue 67

Editor’s Note: The following is a true story. For security reasons, names and exact locations will be withheld and a few minor details changed.

“Now we have an understanding.”

The airport official tapped the envelope stuffed with American currency and let the group pass through the checkpoint. The clock was ticking, and my friend’s group was trying to get back to the United States from a country in Africa that had imminent flight restrictions pending due to a disease outbreak.

My friend and his associates had traveled to Africa for an expedition, but when they attempted to return home, they were stopped at security and told they could not proceed. This was more than an inconvenience — it was a potential disaster. The country was preparing to shut down all flights to the United States due to a worsening health crisis. If they didn’t get on that plane, they might be stuck overseas during a pandemic, far from their family and their health care providers.

As they gathered in the lobby, trying to figure out why they had been stopped, they noticed something odd. Other travelers were passing through the checkpoint after discreetly handing over plain envelopes to the guard. A quick call to their in-country guide confirmed what was happening.

They pooled their remaining cash into an envelope provided by their in-country guide; it was all in American dollars, fortunately. The American dollar still holds value in all corners of the world. It’s seen as the World’s Reserve Currency, one of the safest and most dependable currencies (for now).

The group leader approached the guard again, discreetly handed over the envelope, pointed to my friend’s group, and asked if they could board. The official took a glance inside, turned back to them, and uttered the words that would get them out of the country.

“Now we have an understanding.”

They made it onto the flight just before the lockdown took effect. This incident raises a critical question: What if the dollar no longer held its status as the world’s reserve currency? What then?

When cash loses its value, precious metals can become currency. In a crisis, bartering with things like gold or silver could mean the difference between getting what you need or going without.

“You Can’t Eat Gold”

In the prepping community, the most common argument against precious metals is: “You can’t eat gold.” And to be fair, that’s absolutely true. If you’re starving in a total collapse scenario, gold and silver won’t fill your stomach the way a stockpile of rice and beans will.
I’d never suggest that someone make precious metals their first prep. Before you even think about stacking silver or gold, your priorities should be food, water, medical supplies, security, and shelter. Those are survival essentials. We all know this. There’s no point arguing against those facts.

However, different preps serve different purposes. Precious metals aren’t about immediate survival. They aren’t about filling your stomach (at least, not directly). They’re about long-term financial resilience, barter potential, and mobility. When fiat currencies fail, or governments impose financial controls, gold and silver have historically provided a means of escape and recovery.

Let’s return to my friend’s airport story for a moment. He got lucky that the officials still accepted U.S. dollars. But what if they hadn’t? What if the dollar was worthless or banned in that country? Historically, in times of crisis, people have used gold to bribe officials, escape war zones, and rebuild their lives when paper money became worthless. We know this happened during World War II, and we know it's happening now in Ukraine and the Middle East.

Bartering isn’t just about what you have, it’s about how easily you can trade it. The Prepper Bar — a credit card-sized piece of precious metal — is designed to break into smaller segments, offering increased flexibility when cash is worthless.

A Currency That Has Stood the Test of Time

Gold has been used as a form of currency for over 2,000 years. Empires have risen and fallen, yet gold has retained its value through every collapse. The Weimar German Mark and the (pre-2009) Zimbabwean dollar, they all became devalued in the end. But gold remained.
During WWII, some RAF pilots carried small gold coins in their emergency kits. If they were shot down behind enemy lines, they could use those coins to buy safe passage, food, or shelter. Why? Because gold holds universal value. It isn’t tied to any one country’s economy, and once melted or broken into smaller pieces, it becomes virtually untraceable.

During historical times of strife, refugees have used gold to escape economic collapse, war, and oppressive regimes. When paper money became useless, some black markets still accepted gold and silver in exchange for vital supplies. If the financial system ever fails or digital currency restrictions are imposed, precious metals could serve as a black market currency to obtain needed food, medicine, or safe passage.
Recently, a U.S. senator was convicted of accepting gold bars as a bribe.

Why gold? Because, again, it is nearly untraceable if melted and reformed. Once it has been repoured as a coin, bar, or piece of jewelry, it becomes very difficult for authorities to determine the origin. Yet it retains value in weight, nearly anywhere in the world.

e: Sometimes, a well-placed $100 bill can open doors when nothing else will. A Wazoo Cache Belt keeps it hidden but accessible, perfect for emergencies where a Benjamin speaks louder than words.

“Gold Is Too Expensive”

Some people argue that gold is out of reach for the average person. And while it’s true that a single ounce can cost over $2,800 now, there are more affordable options.

Fractional gold coins or bars in smaller weights, such as 1/10th of an ounce makes gold ownership accessible for more people. Not only is it easier to accumulate over time, but it's also more practical for trade. In a crisis, trying to barter with a full ounce of gold could be like trying to buy a loaf of bread with a $1,000 bill. In some situations, flashing that much gold could be risky and make one a target. Smaller denominations offer more flexibility.

Silver is another option. It has historically been the common man’s money and is far more affordable than gold. Silver coins, rounds, and bars provide a tangible way to store wealth without breaking the bank. Of course, if mobility is the goal, it is hard to travel with a large amount of silver. In other words, a handful of gold coins can be easily exchanged for the equivalent of $10,000 in U.S. dollars at nearly any jeweler or coin shop, at almost any major city in the world. Travelling with that much silver is not easily accomplished though.

“Nobody Will Want Gold If SHTF”

Skeptics in the prepping community often argue that in a total collapse, nobody will care about gold and silver. While it’s true that in an immediate survival situation food, water, medicine, first aid supplies, batteries, and ammo will be more important, history tells us that every economic collapse eventually leads to a barter market and then some form of stabilized recovery.

Gold and silver have always been valued in those markets when this has happened in other areas of the world. When a currency is replaced, typically gold has retained some value and can be exchanged for the new currency. Older, discontinued currency often doesn’t have that reliability. And when recovery does happen, nobody wants to buy your stockpile of canned peaches.

However, even if a full-blown SHTF scenario never happens, precious metals still serve a purpose. Unlike food storage, which eventually expires, gold and silver retain value. They can be passed down to future generations or sold during retirement. If nothing else, they act as a partial hedge against inflation and financial instability. If a true collapse never happens, what would you rather have to help you in your retirement? A basement full of canned spam or a safe full of fractional gold? Maybe you want a bit of both?

Or sometimes a person just needs to “get off the X.” We all plan to “bug in” if there is a crisis, but history shows us that sometimes a situation is so bad that you’re forced off your location. If someone needed to get out of country quickly, a handful of gold coins might not only help them obtain passage when it was otherwise prohibited, but it can be exchanged nearly anywhere in the world for that local currency, giving the “refugee” a chance to escape and start anew, with anonymity.

This has happened historically and is happening today. This is why “flight risk” is often considered elevated when courts are assessing bond for rich criminal suspects. It's easy for them to disappear, and gold makes that disappearance anonymous and challenging to trace.

Security

Depending on your situation, you’ll need to determine how and where you store your precious metals. Most people will recommend a fire-resistant safe that’s cemented into your floor or wall. I prefer to store mine offsite in a bank vault. Some worry that the bank could confiscate that, but that’s rare, and I stay within the law. I also don’t have to worry as much about losing it all if there’s a burglary, fire, or flood by storing it off-site in a bank vault.

The choice is yours. One thing that most in the precious communities say is “if you’re stacking, you better be packing.” I’ll let the readers determine for themselves how they provide for the safety of their family, but please don’t make yourself an easy target. And if you buy your gold in jewelry, don't flash a lot of it on your person at the same time.

Stacking gold and silver isn’t just a hedge against crisis — it’s a smart move, no matter what the future holds. Whether for barter in a worst-case scenario or as a long-term investment, precious metals offer security when paper money can’t.

How to Tell If Your Gold Is Real

Due to gold’s high value, there is, of course, the concerns for counterfeiting. If you’re going to add gold to your preps, you need to know how to verify authenticity. Some basic tests include:

The Magnet Test: Pure gold isn’t magnetic. If it sticks to a magnet, it’s not pure gold. Some coins are alloys, so they may have some degree of magnetism. But gold coins and bars marked .9999 should not.

The Ping Test: Gold and silver coins have a distinct acoustic ring when tapped together with the same metal. This can be a learned test that you can recognize by ear memory, and there are downloadable apps that’ll match this. This test, however, can be tricky for some, and counterfeiters are getting clever at mimicking silver’s acoustic ping especially with mixed alloys.

Weight and Size Test: Genuine gold coins and bars have precise weights and measurements. A good digital scale and calipers can help detect fakes. Experienced collectors often can spot a fake gold bar or coin by comparing it to one the already possess or even by holding it in their hand.

The Ceramic Test: Pure gold is softer than ceramic. When dragged across a piece of unglazed ceramic, it should leave a residue gold streak. Counterfeit gold will often leave a black streak.

The Acid Test: There are kits that will test acid reactivity with pure gold. Pure gold shouldn’t react to nitric acid. Impurities in counterfeit gold should have a chemical reaction. A word of caution: This can damage jewelry and coins that have some gold content but are not .9999 pure. This test might be best left to a professional jeweler or at least someone very experienced in handling precious metals.
There are instruction videos online to demonstrate how to test the purity of gold with other techniques such as the specific gravity test. Many jewelers, pawn brokers, and coin shops around the world have an X-ray fluorescence (XRF) spectrometer, which allows them to test gold and silver for purity. These machines are often cost prohibitive for the average person, but a shop will test your coins, bars, and jewelry if you're polite and regular customer. I would advise readers to please not abuse this courtesy service, as the shops have spent a lot of money for that equipment. It’s good etiquette to make a purchase in their store before asking if they would do this for you.

If you’re serious about buying precious metals, consider purchasing from reputable dealers. The more reputable dealers have been in business for years and usually wouldn’t want to risk their reputation by shipping counterfeit coins. The same can be said for jewelers and local coin shops. The longer they have existed in a community, the more likely they have established a safe reputation, but be sure to check online reviews as well.

Lessons from the Airport Bribe

After my friend returned to the United States, we talked about what happened. We both agreed that for any future international travel, carrying a backup form of wealth was a must. Most people who are experienced preppers and travelers know to always carry some cash from both the country they’re visiting and their home country. Even if you’re not from the United States, it still may be wise to travel with a few hundred in U.S. dollars and/or some euros when travelling abroad, because those currencies are recognized and trusted worldwide.

Carrying a bit of gold may also be beneficial, even if only in the form of jewelry that you keep on your person discretely. (I'm not a fan of anyone wearing a lot of flashy exposed gold unless you’re travelling with personal security guards.)

The experience was a real-world reminder that when things start to fall apart, money talks — but only if it still holds value. The dollar still holds that value today, but history has shown that all fiat currencies eventually fail. If that happens in our lifetime, those who prepared by diversifying into precious metals may have a big advantage.

You also don’t have to go all in. You don’t have to buy kilos of gold or fill a safe with silver bars. There is, of course, a risk of fluctuations in value with precious metals, just as this can happen with real estate and other assets. But having some precious metals as part of a well-rounded preparedness plan? That just makes sense to some of us.

After all, when the system breaks down, having options could mean the difference between being stuck in a bad location or getting out in time.

About the Author

Tom Sarge is a trauma therapist with over 27 years in mental health, specializing in first responders. A dedicated prepper, he runs the YouTube channel, Prepping With Sarge, and its Instagram counterpart, @Prepping_With_Sarge, where he shares insights on mental health first aid, wilderness foraging, financial preparedness, and food self-sufficiency. He also manages The Official Mental Health Matters Channel, teaching strategies for coping with trauma, anxiety, panic disorder, and insomnia. When he's not working with patients, Sarge enjoys traveling with his wife, hiking, camping, gardening, foraging, and collecting knives.