[Abundy]

It mean people are investing in real valuables.

I never understood why people think "buying" gold on the stock market was a sound investment since a crash is a crash and after a crash those people won't have any gold in their hands.

and if the SHTF gold really won't have any worth...boots, .22 ammo, cigarettes, alcohol, etc... - those will have real value.

[Red Badger]

I’ve always wondered, “If GOLD is such a great investment, why are they trying to sell me some for paper money?”.............

[darth]

Sugar is excellent for bartering. Keeps forever. Can be traded as food or distilled into ethanol....for medicinal purposes only.

[greeneyes]

Profit taking. Everyone should be cashing in what they anticipate selling before the capital gains tax increases hit in 2013. Sell now wait 31 days and buy back, if you want to hold the stock or commodity.

Gold and Silver are inflation hedges, and should be part of any well balanced portfolio of investments, just as food and ammo(assuming you are one of those bitter clingers) are part of your preparations to maximize your money.

For example, I liquidated half of my stock holdings in 2007 and After the market crash in 2008 I was able to buy in at a lower price. When the jump in prices for gasoline started, I immediately went out and bought 6-12 months of food we eat on a regular basis. Set out a garden and learned to dehydrate and can my own foods, which has allowed me to keep my food budget neutral, and still add to the stock of food when there are good sales.

One example: peanut butter (grand daughter loves it-good source of shelf stable protein) Stockpiled 2 years at $1.00 per jar, now costs $2.25 per jar. Pretty steep inflation.

I experienced the oil shocks during Nixon & Carter, so I knew real inflation would be hitting the Grocery stores pretty quickly. Once you have the items you need( and use all the time) stock piled, then precious metals make sense.

At some point, your real estate taxes will also reflect the devalued dollar. Gold or silver can be cashed in to pay those taxes if you don't have enough fiat money. If you have a fixed rate mortgage, fiat dollars can be used to make your house payment, unless your contract contains some provision for adjustment.

Precious Metals market is said to be subject to manipulation, but pay no attention, unless it is getting close to your purchase price. It is just a hedge against fiat money becoming worthless, or at least greatly devalued.

It is not a question of either silver or food, or ammo etc. It is about prioritizing what you as an individual need the most to get through the next 3-5 years at a minimum, and it should include water, food, shelter, and security(financial and personal-guns ammo etc.). All things that any balanced portfolio needs.

So stocks, precious metals, guns, ammo, toilet paper, food, real estate, water sources, etc are all part of the portfolio, with the stock market at this level, it would be a good idea to take at least some of those chips off the table especially in light of tax policy. Same for precious metals, if you are overweighted take some profit now while taxes are lower, if you think you can buy back at reasonable prices after 30 days.JMHO.

[ASA Vet]

boots, .22 ammo, cigarettes, alcohol, etc... - those will have real value.

Different things have value to different people.

Any ammo, not just .22, has value, if not for your own piece, it can be bartered.

Your cigarettes would have zero value to me except as a barter item. Cum to think of it, my Army ration card cigarettes were "bartered" for something I valued at that time.

I question alcohol as a barter item. It's so easy to make it won't be scarce.

[silverleaf]

I read that people who buy gold as an investment are speculators or fools

Its smarter to view buying gold as a means of preserving wealth, making price spikes and falls far less meaningful

Look far into the future and consider what you now hold as “wealth” will fare, and be valued, If you think guns and ammo are better means of preserving wealth, then buy them and good luck. If converting 10-15% of the value of your stocks and bonds into gold by selling them and then buying bullion seems like a reasonable hedge, then go for it and use price drops as opportunities

I think daily prices and commodity deflation are less menaingful over time, especially given the various ways of price manipulation of market spot prices by governments and large investors ... I think the Chinese have a lot of “influence”