Currency Issues and Spending

[Mackay]

The economy may go down and fully crash, but when it starts to go back up those who have gold and silver will be at an advantage.... they will be able to be players in trade...

Gold and silver got many people through in Germany after the war... it bought them passage to places they needed to go, it got them food on from the limited markets.

Even if gold and silver you cannot eat, in some other part of the country or world it will still hold value... international trade will not end... look how India and China and Arabia are purchasing huge amounts of it... and some other countries that are capable too.

And people here are also storing it like crazy... and it will be a trade currency....

you may be storing a lot of stuff... but eventually you will have to find a way to purchase seed for the pasture, a part for the furnace, a medicine for the baby, a gallon of gas for the chainsaw.

 

[Dunkopf]

If it gets that bad, people with gold and silver will be getting killed for it. There won't be any police protection and crime will be rampant. Sure you'll get a couple of them before they get you. Dead either way.

The fed will pull it out eventually. There's just going to be a lot more people in the lower class than the middle class. Lot of empty houses around the country and more kids dying from malnutrition. Europeans will be watching commercials about feed an American child for only 29.00 a month.

If you already have gold and silver that's great. I wouldn't buy any right now though. It will start dropping eventually just like the last time it maxed out during the Reagan years. It would suck to buy some and then have it drop until the next recession. Sell it when it starts dropping and make a good profit.

If the SHTF for real. I would much rather have stored food and water on hand.

 

[Blackbird]

If a few people are willing to kill for silver and gold, imagine how many more are willing to kill for a nice big storage of food.

 

[Dunkopf]

If a few people are willing to kill for silver and gold, imagine how many more are willing to kill for a nice big storage of food.

Yes, but when you pull out a bag full of gold coins to pay for your seeds the other guy pulls out a gun. Hopefully your stored food is in your basement and you don't wear a shirt saying I have stored food.

 

[k0xxx]

The big silver run up of 1979/80 was due to speculation by the Hunt family. The Hunt brothers, along with some investors from the middle east, amassed somewhere around 200 to 250 million ounces of silver. Silver peaked at over $50 an ounce, but once the Fed and Comex (The Commodities Exchange) got involved and changed trading rules, the price plummeted.

Today the price of silver is going up for other reasons. The big reason is because the dollar is falling in value at a time where there is less silver available than at any time within the last 100 years.

Consider that world silver supply has declined from 10 billion ounce in 1940, to 1 billion today, and is currently being used faster than it can be mined. Silver is an industrial metal and is used in manufacturing everything from electronics, to refrigeration units, to photographic film. It is consumed, and then ends up in a landfill, with very little being recycled. Recycling silver is expensive and not worth the costs at current price levels.

I personally believe that the price will keep increasing. Sure there may be a few correction along the way, but there is still a long way to go before it peaks. I believe it enough that I am still putting my money where my beliefs are.

And as Blackbird said, if it gets to the point where you have to defend against a few wanting your metals, imagine how many will want your stored food, your chickens, etc. For both reasons, it would pay not to advertise the fact that you have anything of value stored. In the military it is referred to as OpSec (Operational Security). I don't see things getting that bad, but I do believe that we are headed for interesting times.

 

[k0xxx]

Yes, but when you pull out a bag full of gold coins to pay for your seeds the other guy pulls out a gun. Hopefully your stored food is in your basement and you don't wear a shirt saying I have stored food.

That doesn't make a lot of sense. You wouldn't take a a huge roll of cash out just to buy some seeds today, would you? Neither would you take a bag of gold coins with you to do the same.

What most people who advocate buying gold and silver seem to miss is that it's not about bartering with it. Sure, there may be occasion to, but the real reason is to be able to convert the metals back to what ever new currency becomes the medium of exchange after things start to normalize. It's a way to store wealth during a loss of value by paper currency.

It could be that gold and silver (or paper backed by them) will be the new currency, but I truly doubt it. Politicians have tasted the fiat currency apple, and I doubt that they'll ever quit eating of it.

 

[Mackay]

I really don't think there is enough gold and silver in the world to back all the currency that is traded every day, is there?

 

[k0xxx]

I really don't think there is enough gold and silver in the world to back all the currency that is traded every day, is there?

No, there is not. There's not even enough gold and silver to back all of the gold and silver traded each day.

Gold and Silver ETF's (Exchange Traded Funds) generally sell many times the number of certificates than they actually have metals for (which they swore that they would NEVER do). This is another reason that, relative to the dollar, gold and silver will skyrocket when investors start trying exchange the certificates for the actual metal.

 

[BarredBuff]

Signs of the Times. BB

 

[Wannabefree]

I'm not worried. It is what it is, whatever it is I have contingency plans