I know, right.
Posted on 04/07/2011 5:17:38 AM PDT by Kaslin
I am not a financial guru(I mean that in every possible way) but common sense tells me that even if stocks drop like they did before, they will bounce back quicker than the dollar. I have been reading some dire forcasts for May ( not sure exactly why) but if you are worried, cash out high (like now) and if the market takes a hit you can re-buy low. That is what I am doing. I am also buying some silver (just in case). If there are any financial gurus with better advice or just want to tell me why I am off base please let me know. I would much appreciate it!
Welcome to the Dark Ages.
“But whats stopping the powers that be from pulling an FDR, confiscating Gold (and silver, platinum and maybe copper) ?”
They can only steal that which they know about.
Maybe on the black market items are able to be traded or sold, but gold as a currency we be virtually useless. There would be no more (legal) gold traders, to sell gold bullion for cash to buy items.
Gold is valuable today, outside of jewelry, as a commodity that can openly be traded. People are hedging gold against greenbacks, because they can, and thats whats driving the price of gold and silver up. Take away the ability to use it as a hedge and its value drops.
If gold ownership(and possibly other forms of tangible wealth) is outlawed, then I predict a huge black market. While I can’t predict the relative value of gold in such a world, I’m sure it will still be more coveted than worthless bundles of hyperinflated funny money. Just don’t leave your wheelbarrow unattended outside the state-run store while you buy that rancid loaf of bread with your pile of paper money.
I know, right.
Someone will take the wheelbarrow and leave all the money.
(Actually happened in Weimar Germany)
(actually, it was a basket taken)
I’d be careful about over-romanticizing Gold. In many ways it’s actually the ultimate so-called “fiat” currency. It has no intrinsic value. You can’t eat it or even really make anything useful out of it. It’s only value is that it’s a pretty metal that is easy to shape and it doesn’t rust... so it’s great to make coins out of. Beyond jewelry and some industrial applications it isn’t really very useful for anything else.
But beyond that its only worth what somebody is willing to give you for it... because they ~believe~ that somebody else down the road will also trade something for it. That, in a nutshell, is what “fiat” currency means. It’s a medium of exchange based on belief that its value is transferable to someone else.
Now, don’t get me wrong... it works really ~well~ as a currency. But it doesn’t survive a “total” collapse any more than paper money or a box full of quarters. In a total collapse, trade tends to revert to barter. Something useful, traded for something useful. A side of beef for a crate of ammunition. A bottle of whiskey for some hours labor... whatever.
I can’t be overdrawn! I still have checks!
Gold has had value since the earliest recorded histories. But you’re right, you cannot eat gold.
All I have is 5,000 years of history to go on, which is why I figure some people will still want the stuff. The best survival strategy is to diversify and not put all of your eggs in one basket.
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