Posted on 11/05/2021 4:46:16 AM PDT by LouAvul
..for worst case scenario. Etc.
Spot price is market value at point of origin exclusive of mining costs, etc. I get it.
But where to buy in a metropolitan setting. "Fast Ernie's Gold Depot" is likely not a good place. Nor the local pawn shop.
Where, in the big city, to pick up a few ounces? How to price?
Dan Celia is a Christian Consevative financial advisor. He recommends looking here:
Lead has increased in price because there isn’t a 100 to 1 supply of fake lead being offered/brought on the open market.
In the same way: there isn’t a 100 to 1 supply of fake buildings or food or gas etc being traded to clueless traders.
Gold and silver are *heavily* price-suppressed in order to protect the worthless treasury note. The price is suppressed by the issuance of enormous amounts of ‘synthetic’ or ‘paper’ precious metals.
And that was 2 years ago. By now 100 to 1 is a low estimate.
(Which is not to say that the prices of Gold and Silver are going to rise 100x higher in todays dollars. But 5x - definitely.)
In the late 90s I was into FALs, so needed 7.62x51 to feed it. You could get Austrian Hirtenberger NATO spec, Boxer primed, for $175/1000 round case. And they were awesome cases, wooden crates holding 5 x 200 round battle packs of super heavy rubbery plastic. 10 x 20 round boxes inside those.
Anyway, compare that to prices today. I wish I’d put 6 figures into ammo investment.
Why gold? I have silver. It’s a better payment option because they are smaller denominations. Slicing up a gold coin to pay for bread seems silly.
Spot price is market value at point of origin exclusive of mining costs>>
you don’t get it
The easiest way to begin hoarding gold is to buy a few shares of GLD.
When you have bought GLD you have locked in the price for your gold.
Then you can start shopping around to see how much the gold dealers want to charge for the real stuff.
W
It seems to always be easier to buy than to sell.
Once you have it, where to store it? Maybe a safe deposit box at a bank but in a true TEOTWAWKI event, would you have access to it? Would banks even be open?
If you stored it at home, wouldn't you be worried about theft or something happening with your house (fire, storm damage) that would prohibit you from getting access to it when you need it the most?
If you did have gold in a TEOTWAWKI event, what to do with it? How would you convert it to legal tender that is actually accepted? Would you attempt to buy your milk and bread by sliding a gold bar or coin across the counter? How would the cashier even know how to make change for it? Would they even accept it as payment for anything? More importantly, you would bring undue attention to yourself. Wouldn't some unsavory people now follow you home to see what else you might have stored away?
Finally, I have always been amused by many people telling me that currency will soon be worthless and that I ought to exchange it for gold (or some other medium like silver, bitcoin, etc.). Whey then are people who have all this precious gold so willing to take my "soon to be worthless" cash in exchange for it? Doesn't anybody think about the irony in that?
Bitcoin? Really? Do you trust your government to not shut down the internet if it gets that bad? Or punish you for having it? Just imagine if China decides to set off an EMP with their next supersonic missile. We’re toast. Bitcoin will be useless.
What you are amused by is called ‘turnover’.
People who sell gold professionally do so at a profit. They sell gold to buy more gold. And they tend to save (for themselves) in gold or silver.
Also: you will not be taking your gold coin out of your pocket while fiat currency is being used for trade.
When fiat currency changes to something closer to true money (e.g. by becoming partially based on gold) then it will be time to spend your gold. No-one will turn their nose up at it then.
I prefer to get mine face-to-face so here is a list of mints by state.
If you are in Minnesota, I highly recommend Premium Quality Coin (tell Bill M/M Cash sent you).
Been doing business with him for 40 years, a great and honest guy.
Not long ago, I found an old issue of Shotgun News from 1994, and the ammo prices in the J&G ad would make you cry today. I remember thinking back around then that $160/1000 was kind of pricey for Australian 7.62x51....
Of course, back then I didn’t have the money to invest in a million rounds or so, not to mention storage and transportation since then.
I have to disagree with Presbyterian here.
Don’t buy an ETF either in Gold or Silver. ETFs don’t maintain enough precious metals to cover their issued shares.
They are not going to give you what you want, which is full exposure to the gold price. Nor will they give you legal ownership or title to some gold or silver.
When the fiat currency finally resets, small holders in ETFs will be clutching a handful of paper.
I have to except PSLV from the above. This is an ETF that does seem to hold enough PM ounces to cover all holders.
Just as a cautionary tale, the government of China bought a huge amount of gold. It turned out to be fake. It was so good that it remained undetected for years.
The problem you have when buying and selling gold is establishing it is that it purports to be. You can’t just test the outside because often times that is just plating over something else that’s close to gold’s weight. You might want to investigate how you sell the product before you buy it.
We live in a world where nations, like North Korea, put significant effort into creating fakes. Even Krugerrands are being faked.
If it really hit the fan, 5.56, 9mm, shotgun shells and whiskey, just to name a few, would probably be worth more than any precious metal.
Does anyone know how to take some money from a 401 or 403 and move it into gold and silver without paying a tax on the cash?
Yes - gold-plated tungsten.
This is why I prefer silver bullion to gold. I don’t believe there’s a way to create a density match alloy to silver that wouldn’t also be magnetic.
And of course - buy from a reputable source.
Perhaps my point was not well written.
This is what I recommend.
1. Buy GLD today if a person wants to start hoarding gold.
2. Then compare the prices being offered by the dealers for the real stuff vs. the current price for GLD or gold itself. GLD tracks the price of gold.
3. Once a person has found a dealer who does not excessively markup the price of gold, then sell the GLD and buy the real stuff.
4. This plan gives a person time to evaluate the bullion dealer prices while at the same time a person has locked in the price of their gold held via GLD.
People with degrees in gender studies will not be as valuable to society.
Ping to the FR Gold & Silver Ping List!
A common view. And in special cases, like being trapped in a beseiged city, its true.
But in a SHTF situation, the true value of Gold and Silver will shine forth.
Precious metals (Gold, Silver) are money. They are the only entities that have all of the attributes of money (fungibility, portability, store of value and so forth)
Something that has the attributes of money is valuable simply because it has those attributes. Would-be barterers can use money to overcome the otherwise insuperable problem of discovering a Coincidence of wants.
Trade requires money. Let's examine this vital function of money with respect to the coincidence of wants:
My Chicken farm example:
Imagine that the world has teetered and tipped. Everyone drives a spiky car and carries a gun. Mutant molerats prowl the wilderness, etc etc.
You run an (appropriately defended) chicken farm, and you need to buy a great many things to keep your farm and family going.
In a given month you need - for instance - to buy chicken feed, to hire someone to repair your generator, to buy a nailgun to allow you to mend chicken barn #9, to hire a midwife to help give birth to your widowed daughter’s baby, to buy milk and bacon, to buy another 1000 rounds for the minigun - and so on.
Some of these resources will be buyable directly with chickens or eggs.
But some of them will not - there's no coincidence of wants if the midwife or the nailgun owner don't want chicken meat or eggs. For instance, if they can't replace their expendables with meat or eggs.
The midwife can't drive back across the Cursed Earth to Reno to buy more antibiotics or ivermectin, if all she has is a load of eggs. She's got dozens of microtransactions to make on the way, and three chickens isn't going to get it done.
However: ALL - or at least most - of these requirements for your chicken farm will be buyable with money - with Gold or Silver. Because offering money in a transaction vastly improves the chance of a coincidence of wants.
The midwife or the nail gun owner don't know anyone who wants eggs that have been roasting in the back of their spikey car for a week, but they do know people who will take Gold and Silver.
----------------------
My Chicken farm example - continued:
Imagine that you’ve had a successful month at the farm, and you now have loads of chicken meat and/or eggs to sell.
100 people line up to buy what you’ve got.
* 50 of them have horribly devalued fiat money, food-stamps and a bad attitude
* 40 of them have plans for barter - some of which are better than others.
One is willing to work on your farm for food: another is willing to sell you their nubile, but tragically rad-scarred body, another has a stack of AA duracell batteries, another has some miniature bottles of scotch - and so on, with dozens of variations.
You have to gauge each transaction on its own merits - an exhausting process - and half of the barter offers are simply going to be unworkable.
* 10 of your prospective customers have Gold and/or Silver.
Which customers will you prefer selling your produce to? They all want what you've got - but do you want what they've got? Again: real money vastly increases the chance of a coincidence of wants.
This is because only Gold and Silver fulfill all of the prerequisites of money. This gives them inherent value - useful (for instance) in a survival situation.
Of course Fiat currency can also be used to run a chicken farm. However in time all Fiat currencies - without exception - revert to their true value. Which is moving towards zero now, and which will definitely be zero when everyone has a spikey car and a Remington 870 named 'The Judge" strapped to their thigh.
When our current Fiat currency is no longer trusted then only precious metals will act as money. And you will need money, because you will need to buy and sell.
Hope this was helpful.
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