U.S. retailer stocks up on $10 million worth of gold and silver

The Online Retailer Overstock.com has purchased $10 million worth of gold and silver coins as insurance against financial disaster, according to the Financial Times. According to CEO Jonathan Johnson, the precious metal is kept outside the banking system in case the electronic payment system fails. In that case, the company can draw on its stock of gold and silver coins to pay the staff.

The director of the company is seriously considering a complete meltdown of the American economy. In addition to gold and Silver Coins Johnson also keeps a large stock of frozen food for her staff and their loved ones.

Banks closed

"We think there is a reasonable chance that there will be a banking holiday that could last two days, two weeks or maybe even longer and we want to prepare for that so that we can continue to work during such a crisis.", Johnson said. The online retailer also already accepts payments in bitcoins, so customers can continue to order products even if the banks indeed remain closed for an extended period of time.

The company's stock of physical gold and silver represents about ten percent of all its liquid assets. The precious metal was already purchased when the Federal Reserve's QE program was still in full swing, but even now that the US central bank hints at an interest rate hike, management is not deviating from its strategy of keeping physical precious metal in reserve.

Gold as legal tender

Jonathan Johnson is in the running to become governor of the U.S. state of Utah. He wants gold and silver to be accepted as legal tender again in this state. Last month, he revealed that his company is keeping a stockpile of gold and silver coins as a crisis measure.