7 Priceless Commodities in a Financial Disaster

Have you got enough cigarettes and alcohol to see you through a financial disaster?

Don’t worry… I haven’t gone mad.

Cigarettes and alcohol can actually be a valuable addition to your financial preparation kit.

They’re not for smoking or drinking, though.

Instead, you can use them to solve one of the biggest financial problems that goes hand in hand with a natural disaster.

That problem? Best-selling author of Currency Wars Jim Rickards explains:

These days most people rely on digital forms of money such as credit cards, debit cards and direct deposits without thinking much about it.

None of those forms of money are any good when the electricity goes out — as it typically does in a severe storm, earthquake, flood or other catastrophe.

Folks don’t usually have more than a hundred dollars or so of “walking-around money” in their purse or wallet. That won’t feed your family for long. Bank ATMs don’t work when the power’s out either.

We saw this in action recently in Puerto Rico after Hurricane Maria.

In grocery stores all over the island, there was food and water in the aisles. But with most of the banks still closed, the economy of this small Caribbean island ground to a halt.

At the few ATMs that were still working, hundreds of people queued for hours just to try to withdraw last month’s paycheck to feed their families. Folks left empty-handed as ATM after ATM simply ran out of cash.

Meanwhile, packets of cigarettes were selling for $10 each on street corners…

The lesson here? Even when the economy as we know it breaks down completely, there will still be things people want.

Had Puerto Rico gone completely cashless, you can bet folks would have been trading food and even services for those cigarettes.

That’s why it pays to keep a store of tradeable goods on hand. And it’s not just cigarettes and alcohol people will want in a crisis.

Below is a list of the seven most tradeable goods to stock up on:

Barter Commodity #1: Rice

Whole-grain rice is a great source of carbohydrates. It’s high in calories and protein and has essential vitamins and minerals. Whole-grain rice also has a longer shelf life than white rice, so it’s easier to store. It’s affordable to stock up on rice now, and its value will rise in a crisis when food is low.

Barter Commodity #2: Bullets

Gun owners who aren’t stocked up on ammo will bend over backward for bullets in a crisis. Store the most common caliber ammo, such as .22, .22 LR, .223, .308, 9 mm and 12-gauge shells.

Barter Commodity #3: Sugar, Salt and Spices

Sugar, salt and spices can transform even a basic meal into tasty comfort food. This is essential for keeping morale up during a prolonged crisis, and demand will be high.

Barter Commodity #4: Flashlights

After a disaster, you could be without electricity for weeks or even months. Flashlights and lanterns will be a must.

Barter Commodity #5: Batteries

A no-brainer. If folks are using radios, flashlights and walkie-talkies during a crisis, they’ll need batteries.

Barter Commodity #6: Alcohol

Even if you don’t drink, alcohol is a valuable item for bartering. You can drink it and use it for cooking and cleaning wounds. Note: In order to work as a disinfectant, alcohol has to be above 35% ABV — making brandy, whiskey and vodka your best options.

Barter Commodity #7: Cigarettes

Cigarettes might be unnecessary in a crisis scenario, but folks will have their vices. You can buy these in bulk and be sure that they will be a hot commodity when the stores run out.

All the best,

Owen Sullivan
Editor, Money & Crisis

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