Posted on 09/22/2014 7:50:29 PM PDT by MeneMeneTekelUpharsin
How is gold an insurance policy? Also, name one true insurance product that can decline in value after the premium has been paid in full.
Like drugs?
Whether it is or not, gold is perceived as insurance.
Your insurance policy declines in value whether you know it or not.
Your insurance settlement, whether on a car or a totally destroyed home, is subject to negotiation. It has no firm written in stone value regardless of what you might think.
Been there, done that. Insurance companies with a few exceptions are masters of hardball and deceit.
I came out just fine, but most people do not.
This doesn’t sound like a bad thing.
Illicit drug transactions, by volume of product and trading frequency, are minuscule compared with all other goods and service transactions. The visibility of gold when used for all transactions would be virtually impossible to conceal. Are people really going to risk losing their gold stash, property and being incarcerated for their weekly shopping runs? My point being how fungible is it if it is illegal. That dramatically reduces the market. Gold would likely sustain a similar reduction in marketability.
Thanks or the ping
If we’re talking about volume of products gold becomes a small item to trade. If we’re talking about dollar value of product traded, marijuana is the largest cash crop in California, bigger than pineapples in Hawaii and bigger than lumber in the Northwest. People risk their freedom everyday trading in marijuana. I don’t see the value dropping; if anything, laws against it increase the market value of it.
Gold is insurance against economic collapse and the failure of fiat currency. Every fiat currency in history has failed. Every. Single. One.
And if the economy fails, what are your going to do with the gold?
I think soetoro may try but I don't know if he could get away with it.
Also, in the US we don't have state run stores and in the event of an economic collapse you would have lots of private sellers who would take whatever medium of exchange they are comfortable with.
Gold and silver have withstood the test of time and have generally been an accepted medium of exchange in civilized societies for thousands of years.
Many that are preparing for the worst case scenario, hyperinflation specifically, want to avoid dealing with fiat currency as it could end up being worthless.
Obviously your first priorities should be shelter, food, water purification equipment, meds and first aid supplies, guns and ammo, power, fuel and coms.
Personally I think having some pre 1965 US silver coins would be the most practical.
Good question.
Gold is a hedge against inflation. Federal reserve notes will always be paper but, Gold will always BE GOLD!
There’s always a big argument for gold as the only alternative amid overpriced stocks...should be:
During a gold price bubble, there’s always a bogus argument for overpriced gold as the only alternative amid overvalued stocks...
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