Posted on 12/15/2010 8:59:36 AM PST by SeekAndFind
won`t travel
How are precious metals any different from food storage? In a crash or total chaos, people will find out who has it and come get it. Or the Govt will confiscate it.
God sounds like a better investment.
God sounds like a better investment
Agreed.
So would a good supply of ammo and several guns.
Go ahead and load up on Gold and Silver....When the prices drop, as they will soon, then try to unload it....
For the time being, copper jacketed lead will have to do.
I have a serious question.
If the market seriously goes south, with unemployment into the 20’s and 30’s, and there is extreme civil unrest, will having gold or silver really do anything?
I mean this is the situation the progressives dream of, and numerous “for the safety of the people” laws will be passed, I would assume that owning precious metals would be one of those “safety” issues that would become immediately illegal. Or at least, it would be illegal to buy/sell it.
Am I missing something, because the only thing I believe that would help in an extreme situation is a lot of firepower. Even then, how long could you defend yourself against the military targeting you for the new “weapon’s hoarding laws”.
Exactly....Bullets are a better investment.
Ditto....It’s back to the strong—or who has the biggest gun—survives...
Why would the prices of Gold and Silver drop?
Fiat currencies are going the way of the Hungarian Pengo.
True, Obama would love to take your gold off you.
But if the worst comes to the worst, which would you rather have? A pile of illegal gold, or a valueless pile of firelighters?
When they come for your gold, make it as expensive as if they had come for your freedom. Because in 2011 those will be one and the same thing.
If you don't have the latter when the Big Bust happens, you might meet the former a lot quicker than thought.
Gold or silver are just convenient tokens that people *may* use to buy and sell stuff. They are not goods that you inherently need and must have.
If we see another great depression (or worse) the dollar loses its value first. A bag of bread will cost not $3.50 but $350. But can you buy it with gold? No, and here is why.
First, most gold offers today are pure paper. You buy gold "in a Swiss vault" and get a certificate. It is not worth the paper that is printed on. In case of a global crash these banks will mysteriously crash and burn first (maybe even literally, if the bankers don't want to leave any loose ends; explosives are cheap.) Holders of paper have a chance of getting the physical metal only in fair economic weather - exactly when they aren't likely to do so. There is every reason to believe that those banks who sell you certificates don't even have a vault, let alone gold. If a rare customer asks for the goods, they will buy gold for him; most customers just pay money and get a piece of paper in return. Nice racket, isn't it?
Now let's look at the other strategy - you have the physical metal in your possession (coins, bars, jewelry.) Now what? Can you take those coins to Safeway? Likely not. Can you sell them at the corner store that today screams "we buy gold?" - yes, you can, but at what price? They have you over the barrel on that one. They can offer you *any* price and you will have to take it because what are you going to do if you don't like the price? Are you going to eat your gold?
I agree with many other posters. The primary currency in case of a Mad Max scenario in the USA will be ammo and weapons. This is because this is something you MUST HAVE at any cost. Supplies of that stuff are already limited, as we saw a few years ago, and if there is a mass demand on ammo there isn't enough manufacturing capacity to satisfy everyone. And since ammo will be such a desired product, you can exchange it for anything you need. Gold pales in comparison to ammo. Besides, you can stockpile gold or food or water or gasoline or anything else only if you can protect it, which brings us back to the square one. Survival is the need number one; if you are dead then you can't use anything else, and you can't provide for your family.
Go elsewhere?
Seriously, anybody who doesn't have Gold after the crash will be clamoring to swap their fiat paper for hard assets. Any hard assets. In Wiemar Germany unmarried men used to buy baby clothes if those were the only things left in the shops - anything to get rid of fiat currency.
After the crash a guy with gold rather than ObamaBucks will get a private room to sit in - and a string quintet to entertain him - while he decides on his purchases.
Things will not get to the point where there is uniform hell on earth. There will always be people who see value in the gold and plan long-term in spite of temporary difficulties. A small supply might be helpful to provide actionable options at some point.
How come the sellers of gold accept fiat currency. Why aren’t they demanding payment in gold?
Seriously people, get yourself ready to live Amish. If you got any greenbacks after that, then buy gold or silver.
It may be a barter economy for ahwhile. Gold and silver aren’t going to do you much good if no one wants it and you don’t have the means of production to provide food, water, and heat for yourself.
Headlines from June 2011 - Economy Up, Gold Takes a $500 Haircut....
RE: Headlines from June 2011 - Economy Up,
Maybe you can give us the reason for your optimism...
It’s simple turnover.
The sellers of gold charge a 2% markup and buy more Gold with it. At the far end of the supply chain is a guy in Canada digging more Gold up.
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