[G Larry]

My post was a caution against over-reliance on gold AT THESE PRICES.

This isn’t Argentina or Mexico, and any financial crisis would unfold differently here.

Think about:
Where you would trade (looted grocery stores?)
With whom you would trade,
How you would trade.

There is no model, or assumption of order.

[Atlas Sneezed]

Where you would trade (looted grocery stores?)
With whom you would trade,
How you would trade.

There is no model, or assumption of order.

---

We agree that a pocketful of Krugerrands won’t buy groceries at stores where the shelves are empty or zombies are roaming the streets. And they won’t protect you against a meteor strike either.

But they are a useful store of wealth, for many crisis scenarios, and they have ALWAYS been a useful store of wealth for the time after the crisis ends.

You’re trying a little too hard here.

[palmer]

With whom you would trade, How you would trade.

Those details don't really matter. The fact is that sooner or later the Arabs and the Chinese aren't going to want our toilet paper anymore. Some third party will come to you and buy your gold. Meanwhile some other party will pay gold to get that oil and big screen TV's. Also if there is a big dump in the gold price, there will also be a big dump in commodity prices, so it's not a bad idea to trade in some gold for toilet paper at some point (although that point is still out of view)