Return of the Gold Standard as world order unravels(Gold has already replaced the dollar)

Daily Telegraph ^ | 14 July 2011 | By Ambrose Evans-Pritchard

[quesney]

"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.

"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."

[AAABEST]

Post of the day... hands down.

[ChildOfThe60s]

Did you know that Mountain House freeze dried foods is not taking any new orders until fall because they are sold out!

Wake up people. You can protect yourself without Mountain House. Canned goods will last longer than many of us here have left to live.

http://shop.conserva.de/epages/es116266.sf/en_GB/?ObjectPath=/Shops/es116266_conserva/Categories/Langzeit-Nahrung/information_shelf-life_tins

[ecomcon]

Yep. Obama is every bit as conniving, elitist, and deluded as FDR was. The parallels in world view between the two are many, as well as their actions in economic crises. Both are utter failures.

[redangus]

Actually about $11,000 from what I have read in some financial newsletters.

[redangus]

I’d rather have all three.

[ecomcon]

I believe social security is inflation adjusted.

[Atlas Sneezed]

I don’t see people carrying bags of gold down the street to pay for things.

---

You can say the same thing about savings accounts. Useful for storing your wealth, but not for grocery shopping.

[CaptSkip]

Did you know that Mountain House freeze dried foods is not taking any new orders until fall because they are sold out!

Maybe? Maybe not.

I just placed an order this AM of #10 cans of freeze dried foods from Emergency Essentials, including Mountain House product.

Emergency Essentials sent an e-mail this AM that they had many Mountain House items back in stock.

I also checked Amazon and the vendor they use is also fully stocked on Mountain House.

IIRC, Mountain House was on deep back-order for much of the first half of this year, reportedly due to huge .gov orders...and preppers' heavy demands.

[Atlas Sneezed]

If cash money gets to be worthless ... what do you redeem the solid gold for ?

---

Cash never gets to be worthless. You redeem for whatever large amount of cash gold is worth (just like in Zimbabwe).

You can also redeem your gold for goods (paying an accumulated bill, or depositing ofor a merchant credit). You can also buy a Wal-Mart Gift Card (or will be able to should your scenario come true.

You can also pay the cashier with your gold, and get...

...change (in smaller gold coins, silver, or cash!

[Atlas Sneezed]

Are you the genius who added all the hostile (looney) keywords to this article?:

activefantasylife; belongsinbloggers; federalreserve; gold; goldbugs; notanewstopic; paulestinians; paultards; ronpaul

[Atlas Sneezed]

If an economic apocalypse occurs I’d rather have guns and butter than gold.

---

I’d suggest a more shelf stable food supply, but you’re basically right. Of course, the question is what to do with savings after getting the “beans and bullets” squared away, not the false dilemma you pose.

[Atlas Sneezed]

Gold may have replaced the dollar but if Obama is willing to destroy the U.S. Dollar,what’s to prevent him from banning the private possession of Gold in any form other than as jewelry?Nothing.

---

Gold in private hands in 1933 was ample, as US gold coins actually circulated. It was a substantial factor in government control (abuse) of the economy to remove the gold from private hands.

To do the same today would have a microscopic effect on the economy, or the government’s ability to control it.

Also, those who hold gold today tend to be politically conservative, likely gun owners, and unlikely to obey. Maybe Obama can grab all the supposed Comex gold held by ETFs, but not the gold privately held by ordinary people.

In addition, gold confiscation happened AFTER it had appreciated substantially. If it were to happen, it wouldn’t be at $1500, it might be at $5000, at which price those who complied would receive the full price (if history repeats. The inflation that follows would hurt those dollars, but it’s a darn stretch better than not having enjoyed the gold gain to have a larger pile of deflating dollars.

The real question is: why do some freepers seem so eager to make others afraid of owing gold?

You may as well try to talk me into canceling my fire insurance, or consuming my supply of stored food, or spending all my savings. You’re wasting your breath, and we never hear from the anti-gold-bugs what vehicle they suggest for their spare savings. (Which makes it sound like the sour grapes of economic resentment).

[OldNewYork]

“There’s every possibility the US will turn sane after the 2012 elections, but I’m not counting on it. The problem isn’t just Obama - it’s the devolving electorate that voted him into office.”

I vote for this as the winning response in this thread. It merits repeating at the least.

[oldleft]

Wanna see what a bubble looks like?

[Blennos]

The danger to America is not Barack Obama but a citizenry capable of entrusting a man like him with the presidency. It will be easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to an electorate willing to have such a man for their president. The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails us. Blaming the prince of the fools should not blind anyone to the vast confederacy of fools that made him their prince. The republic can survive a Barack Obama It is less likely to survive a multitude of fools such as those who made him their president.”

Well stated. I know a few of the "fools" who help elect this dreadful man. Most of them now regret their decision in 2008. They were not paying attention and were dazzled by the media pageantry. This will not happen again.

[dagogo redux]

Until the final moment of collapse, gold will have a market. After that, not so much, but bag silver may still be a useful commodity (buried off-site, along with a cache of more practical goodies).

There may come a period of time before SHTF when gold bought long before can still be traded for enough fiat money to pay off the house and stock up on more munitions and supplies.

Gotta agree, though - among survival items after SHTF, a few half ounce maple leafs won’t be worth dying to defend, although at the first signs or returning civilization, it will again become very precious: someone in any barter society will always recognize the eternal lure of the shiney goddess.

[afnamvet]

You want to make some smart investments ? Buy weapons, ammunition, fishing line and tackle, garden seeds, tobacco, ... stuff people can use and will be wanting.

Barter will always be with us but you have to have something to swap that others will be wanting and when times get tough a couple of Canadian Maple Leafs in the pocket just doesn’t bring the same warm fuzzy feeling that a half-dozen 12-gauge double-00’s do. (and I’d keep them 2-3/4”, they fit more than the 3”)

In agree 100%. I have been prepping and I am well stocked and well armed.

[the invisib1e hand]

honestly, I think it's safer to talk about religion than it is about gold.

peace out.

[oldleft]

I wouldn't necessarily discourage someone from owning some gold, but it is a bubble. It has all the classic bubble symptoms:

1. An initial external stimulus which creates a rapid increase in demand. In gold's case this was the change in the rules governing securitization allowing gold to be incorporated into mutual funds. In housing it was the change in Fannie Mae lending requirements.

2. A rapid increase in price. Once people see the initial increase in demand they begin buying further increasing the price. The circle begins.

3. Investors start holding in anticipation of further big gains. This is where gold's at now. This is creating less supply and further driving up the price.

4. Big fish start taking profit. This floods the market with supply. Usually there is a stimulus for this (big timers don't do it arbitrarily.) In housing it was stricter lending requirements, what can do it with gold? I'm not sure.

5. Demand drys up. Just like tulip bulbs, no one wants to catch a falling knife. This is when the smart money buys.

[pieceofthepuzzle]

“If an economic apocalypse occurs I’d rather have guns and butter than gold.”

Yes. I actually would rather invest in rich farmland at this point than in gold. At least I’ll know I can grow food. Of course, in an economic apocalypse you would have to have guns probably to protect what you grew.