"They didn't take it when Hurricane Katrina blew New Orleans away last year. Instead, people there traded beer, cigarettes, and ammo. No one took gold. No one."
Do you have any proof of that? I know holders of bullion rode out the fall of the mark very comfortably indeed.
"In fact, try this: go stand on a busy street corner and attempt to sell or trade a pure gold watch.You'll be shunned by all who pass by."
Because everyone thinks the watch is a fake, not real, a sham. Take that same watch to a jeweler and you would get thousands.
"Because everyone thinks the watch is a fake, not real, a sham."
And that's what people think whenever you try to sell them gold on the street. Or in restaurants. Or after a hurricane (e.g. Katrina).
The first thought is that it is fake.
That's why gold is such a poor trading facilitator, especially in chaotic regions/times. You can *barely* sell/trade gold to a few dealers in good times, much less to ordinary people in bad times.
On the other hand, people in New Orleans after Katrina easily traded cigarettes, beer, and ammo. Your first thought when being offered those items is not "it's fake" but rather "I want it."
...Always better to have something that someone else wants.
Because everyone thinks the watch is a fake, not real, a sham. Take that same watch to a jeweler and you would get thousands.You're also living in a fantasy world. Rather than using gold to directly pay for goods and services during a time of chaos and/or hyper inflation, you're suggesting (I think) that we go to jewlers and gold dealers and convert our personal gold stash to dollars. What do you think will happen to the price of gold when there are more sellers trying to cash in than there are sellers willing to buy?