March 12, 2016 at 2:54 am #47816
I have always been leery of the gold/silver thing in large part because there is not remotely enough of it in most communities for it to govern a working post-SHTF economy. Another aspect of this is that all economics will be local post-SHTF and the value of gold/silver will fluctuate wildly to a degree that it wouldn’t be a sound arbiter of value. Yes it is a very good thing to have but of higher priority is addressing basic food/water/heat/security matters. You can have all the gold in the world but there isn’t enough food to go around nobody will be selling any.
I have some, but not a ton, for this reason. I think here in US preppers will have some, but I’m not betting everything on it! I have cash on hand to go on a massive food shopping spree when I sense things are about to get ugly. Dump all the cash before it becomes worthless. Gold silver will have its moments, but like Selco and you said… beans n’ bullets are more important.March 12, 2016 at 3:16 am #47819
WhiteKnight, you’re probably right – we can’t necessarily count on it. I know of one major “gold bug” that used to edit a major Casey Research publication (until Porter Stansberry came in and “rearranged” the place). Shortly before he was ousted, he had made a statement to the effect (as close as I can recall) that he was now “all in” with physical gold, or at least heading that direction. Something just didn’t feel right at the time, but I didn’t worry about it since I’m not in a position to take that kind of position anyway – not even remotely close. To the extent I can, we’re heading toward “all in” on the things we can eat, produce power with, or protect ourselves with, before we put heavy investments into gold and silver.
It has just been more recent that I’ve begun to run through more “what-if” scenarios in my mind, and I don’t come up with easy or fairly definitive answers. And one of those answers I’m not coming up with, is a strong argument that gold and silver will make for an easy trading medium in a true SHTF scenario that extends far beyond just portions of this (or any) nation. If it’s a truly world wide situation, I’m not convinced that enough people will have it to trade, or will be comfortable taking it in trade, and in a pony-express type communication system, establishing a recognized and commonly accepted value will be difficult at best. Not one in 100, and probably more like one in 1000 or even far more, have any idea today how much a “junk” silver quarter is worth (more than 10 times its face value). Convincing them AFTER there’s no internet and the lights are all out, will be pointless – most of them will wonder why they’d want an old coin anyway, when they need toilet paper.
So for me, any silver (gold’s way out of my price range for any significant quantity – thus I don’t even bother) I acquire is mostly for “insurance” purposes in the event of strong inflation or other economic news that drives that currently recognized price far higher. In other words, I look at it as a way of hedging my bets financially, not buying food, bullets, or TP after the grid is down and we’re in a “Jericho” scenario. It’s called diversification in financial terms. And I think Selco largely seemed to have been confirming that in his post. Au and Ag are nice, but Pb is by far the more important of the precious metals.March 12, 2016 at 3:25 am #47821
You are definitely in my camp. In fact, how’d you get into my tent? Haha joking aside, that’s precisely my position. I have it primarily for windows of purchasing power opportunity before things get really sour. I will keep some on hand for post collapse, if/when it ‘ends.’
Diversification is generally a good move, but cover the essentials first.March 12, 2016 at 3:20 pm #47831
It always ends , humans dont like chaos , and work to fix the problem as soon as possible . What the fix is , is another question in itself , but it always ends . Gold and silver will always have value , how much to have , and in what form , is up to the individual . It always ends , people know that , even when down and out , therefore they will always take it ……………..or wont pass up stealing it , even when it has no “practical ” use at the time . The man that doesnt accept a silver or gold coin in hard times , is a short sighted man , and probably has been all his life . It always ends , the old proverb of ” When you hit rock bottom , the only direction you can go from that point is UP ” . is actually true . Especially in developed nations , that have been developed for a long time , we are not talking about Africa where the majority of people have never known or seen anything other than a hunter gatherer lifestyle ………..cant miss or go back to something you never had .March 13, 2016 at 5:20 pm #47836
Gold, silver, lead, food, water, meds…
Guys, look… to me, it’s really not that complicated.
Gold/silver have been “money” for over 6,000 years.
“Money” is just a representation of time and labor – “work”. The only reason everyone agreed on gold and silver to be a physical representation of work that you could trade to others for what you want is because they’re fairly rare – there was never a whole lot of them – and they’re shiny and pretty…
Mankind could have just as easily chosen something else as “money”.
In a post-SHTF world, it might be food, or antibiotics or bottle caps… who knows? But “money” as a physical representation of work isn’t going anywhere anytime soon – it’s form might change. Might change more than once and change region to region on top of that… who knows? I’m just betting on the fact that gold and silver – having been the agreed-upon medium of exchange for 6,000 years – will keep on in that role.
This isn’t saying I’m investing in PM’s and ONLY PM’s… that’s stupid. Even Selco says folks traded PM’s for food. Yes, at exorbitant rates, but it was recognized and used as “money”… and folks got food – which is better than NO food…
Which brings us back to the whole reason for owning PM’s….
I guess do as you see fit… I can’t tell anyone else what to do.
The wicked flee when none pursueth..." - Proverbs 28:1March 15, 2016 at 3:06 am #47868
Much is going to depend upon where you are.
Around here gold and silver have always had value. But cashing in on that, that’s another matter.
If it gets that bad, will the pawn shop be open, let alone willing to barter or haggle?
Will there be anything on the shelves to purchase? Venezuela and Zimbabwe come to mind with the endless lines and nothing on the shelves.
The powers that be are going to do what they do. Nothing I do will change that. But I can ensure that I have the ways and means to feed and defend my family.
Life isn’t coming to stop, just get more complicated. That I can work with.
Metal will always have value, be it pig iron, aluminum or PMs. Just how much and to whom.
For now I’ll stick with lead.
Less someone wants to trade, ounce for ounce.
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