Commodities - What items have inherent worth? - 12/04/13 11:49 PM
I've been thinking about fiat money - our paper and change currency that has no intrinsic value. Apparently it costs 3 cents to print a dollar bill. But the paper itself doesn't hold much value - no more than any paper, I assume. Somebody tell me if they know differently.
Commodities are things that hold their own value, right? So silver money has value. Gold has value. Copper, steel, brass - these are things that have inherent value, and even hold their value, more or less.
For example, a copper penny is worth actually three cents in copper, and a nickel is worth almost its face value in nickle/copper alone. Whereas the copper and steel in a quarter are not worth anything close to 25 cents.
Again, if these assumptions are wrong, somebody please correct me.
So, I started thinking about unusual commodities. Oil is expensive and really not a thing the average person can store. Gold and silver (and platinum) are not exactly cheap investments, but copper still is. A roll of 50 copper pennies is actually worth $1.50 in copper.
(Note that zinc pennies aren't even worth one cent, I believe)
Other commodities? I am kind of brainstorming, but these are my thoughts:
Batteries - they have good value, but don't last very long. Does anyone know how long batteries are good for? Batteries sometimes go on sale at drug stores and the like, but usually aren't frugal purchases.
Candles - i think wax candles will always have value. To every day there is a night, and during the night we'd like to see things, even if our electricity goes out. To my knowledge, wax stores really well. Even if improperly stored wax candles melt into a mush, they can still be remelted into new candles by anyone with access to a heat source.
Candles can be found for pennies, really, at garage sales, thrift stores, and kicking around in junk drawers everywhere.
Weapons and ammo - whatever your politics about guns, knives and other weaponry, weapons always have inherent value. You can use these things to hunt meat or protect your household. These aren't exactly things you can find frugally, though. The best prices I've seen for ammo is at Walmart, and smaller stores like ALCO. Gun shops seem to have higher ammo prices. Guns seem cheapest to buy used from gun shops, or from private sales. Weapons like knives and swords can be had cheaply at flea markets, from my experience. I'm not exactly a weapons expert, so i would welcome comments about this.
Stamps - these are basically fiat money, in another form. We have to trust that the government will uphold the value they assign to them. You can get old stamps in some places at 10% under face value, which is the only frugal option I've seen. Also, Forever stamps are good to buy before postage increases (ie - from now until Jan 4, I believe). But stamps aren't commodities themselves.
Books - Personally, I think books will always hold value, and books on any topic can be found frugally everywhere. Thoughts?
Medicines and first aid supplies - as long as something hasn't expired, it has intrinsic value medicinally. Couponers can often get steals on OTC meds and first aid supplies. Drugstores have really good prices/deal on first aid supplies, in my experience. These would be things you'd have to keep well protected to be useful, though. For example, a gauze packet that's been ripped into or water damaged isn't exactly sanitary anymore.
And speaking of sanitary, pads and tampons are clearly intrinsically useful, if you're female. Just saying.
Textiles - blankets, warm clothes, sheets, towels. Did you know in some countries, textiles are so hard to come by that there are people making a living picking rags out of garbage? Did you know a lot of animal shelters are so in need of blankets and towels, that they will gladly accept your donation of ripped or stained ones? You can pretty much re-use cotton fibers until the material itself falls apart.
Like books and candles, textiles are found everywhere, and are super cheap on the used market. I don't exactly recommend hoarding towels or blankets or winter coats, but I would definitely say they have inherent value.
Camping gear - always useful, easy to buy cheaply used, and easy to sell later for good value. Most of these things are made to last and withstand abuse. You have to know your gear, though. Old stoves/lanterns tend to have a better value than an old tent/sleeping bag, unless they've been stored well and mainly unused.
Furniture - I'm not talking about collectables so much. Desks, tables, chairs, shelves and other useful pieces of furniture are useful for getting you and your things off the floor. I have a old solid wood desk that's been probably used by generations of people as a desk, and will probably continue to be passed along when I'm done with it. It's sturdy and useful, and will probably always have a resale value, desk-wise. Craigslist is a great place to find cheap used furniture, as well as thrift stores and garage sales.
Electronics - Not commodities. These things get outdated and obsolete within a few years.
Kitchen items - i think certain things retain their inherent value more than others, like cast iron pans, a sturdy set of steel bowls, and a really good quality cooking knife.
I'm getting tired and running out of ideas. What else do you guys think? Building materials, compost, construction tools? Woodstoves and fireplace tools? Fitness equipment?
I'd love to talk about this topic, if someone wants to help keep this thread going.
Commodities are things that hold their own value, right? So silver money has value. Gold has value. Copper, steel, brass - these are things that have inherent value, and even hold their value, more or less.
For example, a copper penny is worth actually three cents in copper, and a nickel is worth almost its face value in nickle/copper alone. Whereas the copper and steel in a quarter are not worth anything close to 25 cents.
Again, if these assumptions are wrong, somebody please correct me.
So, I started thinking about unusual commodities. Oil is expensive and really not a thing the average person can store. Gold and silver (and platinum) are not exactly cheap investments, but copper still is. A roll of 50 copper pennies is actually worth $1.50 in copper.
(Note that zinc pennies aren't even worth one cent, I believe)
Other commodities? I am kind of brainstorming, but these are my thoughts:
Batteries - they have good value, but don't last very long. Does anyone know how long batteries are good for? Batteries sometimes go on sale at drug stores and the like, but usually aren't frugal purchases.
Candles - i think wax candles will always have value. To every day there is a night, and during the night we'd like to see things, even if our electricity goes out. To my knowledge, wax stores really well. Even if improperly stored wax candles melt into a mush, they can still be remelted into new candles by anyone with access to a heat source.
Candles can be found for pennies, really, at garage sales, thrift stores, and kicking around in junk drawers everywhere.
Weapons and ammo - whatever your politics about guns, knives and other weaponry, weapons always have inherent value. You can use these things to hunt meat or protect your household. These aren't exactly things you can find frugally, though. The best prices I've seen for ammo is at Walmart, and smaller stores like ALCO. Gun shops seem to have higher ammo prices. Guns seem cheapest to buy used from gun shops, or from private sales. Weapons like knives and swords can be had cheaply at flea markets, from my experience. I'm not exactly a weapons expert, so i would welcome comments about this.
Stamps - these are basically fiat money, in another form. We have to trust that the government will uphold the value they assign to them. You can get old stamps in some places at 10% under face value, which is the only frugal option I've seen. Also, Forever stamps are good to buy before postage increases (ie - from now until Jan 4, I believe). But stamps aren't commodities themselves.
Books - Personally, I think books will always hold value, and books on any topic can be found frugally everywhere. Thoughts?
Medicines and first aid supplies - as long as something hasn't expired, it has intrinsic value medicinally. Couponers can often get steals on OTC meds and first aid supplies. Drugstores have really good prices/deal on first aid supplies, in my experience. These would be things you'd have to keep well protected to be useful, though. For example, a gauze packet that's been ripped into or water damaged isn't exactly sanitary anymore.
And speaking of sanitary, pads and tampons are clearly intrinsically useful, if you're female. Just saying.
Textiles - blankets, warm clothes, sheets, towels. Did you know in some countries, textiles are so hard to come by that there are people making a living picking rags out of garbage? Did you know a lot of animal shelters are so in need of blankets and towels, that they will gladly accept your donation of ripped or stained ones? You can pretty much re-use cotton fibers until the material itself falls apart.
Like books and candles, textiles are found everywhere, and are super cheap on the used market. I don't exactly recommend hoarding towels or blankets or winter coats, but I would definitely say they have inherent value.
Camping gear - always useful, easy to buy cheaply used, and easy to sell later for good value. Most of these things are made to last and withstand abuse. You have to know your gear, though. Old stoves/lanterns tend to have a better value than an old tent/sleeping bag, unless they've been stored well and mainly unused.
Furniture - I'm not talking about collectables so much. Desks, tables, chairs, shelves and other useful pieces of furniture are useful for getting you and your things off the floor. I have a old solid wood desk that's been probably used by generations of people as a desk, and will probably continue to be passed along when I'm done with it. It's sturdy and useful, and will probably always have a resale value, desk-wise. Craigslist is a great place to find cheap used furniture, as well as thrift stores and garage sales.
Electronics - Not commodities. These things get outdated and obsolete within a few years.
Kitchen items - i think certain things retain their inherent value more than others, like cast iron pans, a sturdy set of steel bowls, and a really good quality cooking knife.
I'm getting tired and running out of ideas. What else do you guys think? Building materials, compost, construction tools? Woodstoves and fireplace tools? Fitness equipment?
I'd love to talk about this topic, if someone wants to help keep this thread going.
