Black Markets During SHTF – Useful or Not?

In keeping with last week’s post on hiding survival supplies during SHTF, I wanted to touch on black markets after SHTF. For context, the following video by Sensible Prepper got me to thinking about the topic again, if you’d like to watch it. FYI, I’ve skipped ahead to around the 18:00 mark to get to the beginning of the discussion on black markets and barter items for you:

In summary, he talks about the best barter items to keep for survival purposes. He mentions the obvious picks, such as liquor, tobacco, coffee, precious metals, food, ammo, and more.

First, I don’t suggest bartering anything that is so crucial to your survival that you simply must have it, such as food or medications, but I recognize that’s not always possible, so do what you think best.

Second, I discourage stockpiling anything which you don’t use yourself. Thus, if you don’t smoke, DO NOT stockpile cigarettes for barter purposes. It’s just a waste of your hard-earned money when there’s no guarantee that you’ll ever be able to barter them. Use that money for items you know you’ll use, and which could also be bartered, such as food, toilet paper, and first aid supplies.

Here’s a more comprehensive list of 41 barter items to consider, which was taken directly from appendix H of my latest book: The Survival Blueprint: How to Prepare Your Family for Disaster.

1. Alcohol (hard liquor stores best)
2. Ammunition (.22 LR, 9mm, .308, .223, etc.)
3. Antibiotics (azithromycin, amoxicillin, clavulanate, ciprofloxacin, and cephalexin)
4. Baby and toddler supplies
5. Batteries (especially AA and AAA)
6. Blankets or sleeping bags
7. Candles (tea candles may be the best choice)
8. Canned foods
9. Cigarettes
10. Coffee or tea (coffee beans store best)
11. Condoms
12. Cooking oil (coconut oil, vegetable shortening)
13. Cordage (paracord, twine, bungee cords)
14. Entertainment (board games, books, cards)
15. Feminine hygiene products
16. Fire starting supplies (matches, lighters)
17. First aid supplies
18. Fishing gear and supplies (poles, reels, hooks, line, sinkers, etc.)
19. Fuel (gasoline, kerosene, propane, charcoal)
20. Garbage bags (13- or 30-gallon)
21. Hand lotion
22. Hand tools (hammer, saws, wrenches, pliers, screwdrivers, socket sets, etc.)
23. Lip balm
24. Multivitamins
25. Over-the-counter medications
26. Pencils and notebooks
27. Personal hygiene supplies (toothpaste, soap, deodorant, shampoo, etc.)
28. Pet food
29. Powdered drink mixes
30. Sewing supplies (needles, thread, patches, zippers, buttons)
31. Soda pop
32. Solar panels (and related equipment)
33. Spices (especially salt and pepper)
34. Sundries (nails, screws, nuts, bolts)
35. Sweetness (honey, maple syrup, sugar)
36. Sweets (hard candy, chocolate)
37. Tarps
38. Toilet paper
39. Underclothes (socks, underwear, bras)
40. Vegetable seeds (heirloom is best)
41. Water filters

Notice that I didn’t include precious metals in the list, largely because I discuss them elsewhere in the book, but also because I consider precious metals as a form of money, like cash, which will be used for purchasing supplies rather than as a barter item. In any case, I would definitely include precious metals in the list.

I should point out that I’m not a fan of purchasing supplies (even those you’ll use) specifically with the intention of bartering them away, but I won’t complain about having more of most things. I’ve also mentioned previously that bartering is, at best, unrealistic for a number of reasons.

In my opinion, bartering should be largely unnecessary if you prepare properly. This isn’t to say that bartering won’t likely be beneficial at some point down the road or that bartering, in the form of black markets, won’t naturally happen, because it can be beneficial and markets will spring up.

The question, of course, is when (or in which situations) might black markets be useful or necessary?

Long story short, I suggest it won’t be immediate. After any major disaster, for instance, people will certainly be looking for supplies they need but don’t have, which could induce a barter situation. But that doesn’t mean such a situation will be advantageous to you. That is, the other party is likely to attempt to trade supplies that you neither want nor need. So, what’s the point from your perspective? Granted, they could have wads of cash, but again, what good will cash do you if the other party can’t purchase what they need elsewhere? Perhaps the only benefit here is that you can gouge the other party with the expectation that things will return to normal at some point, but that’s a big assumption. And I’m not a fan of taking advantage of others no matter the situation.

Worse, placing yourself in the situation of exchanging goods with another party puts you at considerable risk. Just think about the mindset of a desperate person, even somebody you know. Do you believe they’re going to act rationally or responsibly when their very survival may be at risk? Maybe. But who knows what they’ll do if they believe you have what they need and you’re refusing to give it up. Desperate people do desperate things, after all.

On a positive note, black markets can take away some of this risk. For instance, there will probably be rules setup to foster security and safety. There may be armed guards, a form of currency only usable at that market, and possibly even a guarantee by those who host the market. But there’s always risk, too. Somebody could follow you home or simply act a fool at any given moment at the market. The safest plan would be to avoid such situations as much as possible.

Given a lengthy enough disaster, however, black markets will spring up. Bartering in this case could be useful and beneficial, but it will be a ways down the road AFTER things has settled down. At least, it should be down the road for you. In most any disaster short of WROL, you really want to keep your head down, avoid interacting with those outside of your trusted circle, and by all means prepare like the stores won’t be open for months if not longer. If you can do that, then you put yourself in the driver’s seat. You decide when, how, where, and what to barter, should you choose that route.

Again, it’s all about giving YOU options. When you’re desperate, you no longer have the choice to find what you need at your leisure. Rather, YOU have a need…a need that must be fulfilled or something bad happens to you or a loved one, and that’s no place to be at all.