-128 votes

5 reasons why Gold will unfortunately be worthless AFTER the collapse of the dollar.

I predict Gold and Silver will have no value after the dollar collapse for 5 main reasons probably nobody has ever heard of. Yes we all know precious metal prices will skyrocket from now until the dollar collapses but afterwards it will be as worthless as a paper weight. In history it used to be true that gold would regain itself as currency again after a paper currency collapsed but it wont work this time and I'll explain the reasons why.

(Reason 1)
With no currency, with what are you gonna sell your gold? The amount you paid for your gold before the collapse will by a long shot not equal the goods and services value, you'll have to trade it for after the collapse and no one will want it because it wont really serve any purpose during this time. Meaning for example most people will be forced to trade $1000 worth of gold for $5 worth of food. Well people might argue "You can use gold for electronics and other things." I say who's gonna work at the electrical plants without a paycheck? The only electricity being made are survivalists who own windmills in their back yard and seriously how many of you have those?

(Reason 2)
People will argue, gold will have to return to currency. I argue, who's gonna mint all those gold pieces for free? Remember when the currency collapses nobody is getting paid anymore so why would US mint workers waste their time working for free? Everybody is gonna be busy guarding their food supply. Food will be the new currency. People who are not self sufficent will end up having to help people who are in order to survive.

(Reason 3)
The government wont create a new currency. Everybody thinks the Illuminati will introduce the "Amero" at this time. Those people who are the Illuminati network won't do anything without getting paid. They are going to be hiding in their Apocolyspe bunkers that they paid billions of dollars to reserve a room in the mountains. Once the dollar collapses everything and I mean everything will shut down. The gasoline will dry up in 2-3 days, food will dry up quick, nobody will work a job including the goverment workers. In these conditions the last thing on people's minds will be fancy jewelry or precious metals. The first thing will be how can they eat another meal and live another day. Everyday, people will get shot/killed for stealing food. You can't eat gold you know.

(Reason 4)
The dollar is currently the worlds reserve currency. The reason in history for thousands of years that gold always returned it's value after a paper money collapse is because it happened in a time when world reserve currencys didn't exist. What this means is formerly when one country's currency died, another would just take over. However in this case, the currency currently dieing is the currency that all other countrys currencys are backed upon. Meaning if the dollar dies here, it takes down every countries currency that based their own currency's buying power or value upon the dollar.

(Reason 5)
Manufacturing and mass production stops. With nobody working because their paycheck is now just worthless paper, gold will cease to have a material or useful purpose. I mean seriously, what are we gonna use it for?

I would suggest this. Buy gold for now and hang onto it for about 6 months. Then immediatley sell it just before the dollar completely crashes when you notice inflation going through the roof and buy as much seeds and non parishable foods items as you can and bury it in containers in the ground to hide it. Remember people will be getting killed over food so you'll be able to get anyone to work for you in payment for food. Nobody will have any reason to want gold after the collapse. I predict when it happens this may very well be the end of money all together and the beginning of what Gene Roddenbury tried to portray when the character Captain Picard said "There was a time in history when the world gave up on money and decided to all work together for the common good." Those who survive who be forced to live by this method. Meaning we will all become farmers and fisherman to feed our communities.




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Understood

I still believe that this gold bug thing will never die. Remember it was the Spanish that saw it as medium of value, not the Mayans. But neither did the Native American Indians. For whatever reason that people will not accept gold as a bartering item it will be there loss as it is more of a universal medium of exchange than most other items that people utilize for bartering.

So, people needing essentials (food, clothing, shelter, power) that have gold as an investment can readily exchange gold for those items as the value is transferred from one hand to another, thus creating a cycle of voluntary exchange.

Not everyone will demand essential items, as this poster implies, some will need a medium of exchange that can be easily transferable and recognized as a store of value outside the paper currency we currently use. And it doesn't end with gold as the only medium of exchange, there is always silver, platinum, and numerous other metals that can be used alongside gold.

Answers

1. Gold tends to maintain its' buying power versus other items. If the dollar is inflated a la Zimbabwe, then the value of gold versus the dollar will appear to go up. However, despite the apparent increased value of gold versus the dollar, the gold will buy about the same amount of groceries and gas as before the inflation. If inflation is stopped and the dollar appreciates versus gold, the prices of goods and services will also come down and gold will still buy about the same amount as before. So, instead of becoming 'worthless,' gold will maintain value when expressed in terms of goods and services.

2. Your argument here is specious. Unless prevented from doing so by law, there are private mints whose business it is to make coins. The minter (if there is such a word) may put the coins into circulation by selling them for paper currency, if there is one, or using them to buy goods and services. If the dollar collapses in value, all products brought to market will join the circulation of goods and services in the same way...through trade of some kind. Otherwise there will not only be no gold, there will also be no food, clothes, gas, etc. Economies don't just stop during a monetary collapse, they morph. Goods and services are still produced and brought to market, albeit inefficiently.

3. See my note above. Your apocalyptic view of a collapse is not what actually happens. I don't mean to sugar coat it...people will die and life will be hard...but goods and services will continue to be produced at some level. Catagorical statements that include the words "everything," and "nothing" are just not true.

4. Gold was the world currency. Gold did not collapse in the past. It was the gold substitutes that collapsed, which is why the world always returned to gold. Your argument tries to reverse the order of events.

5. Again, see my note on #2. Your argument is simply not a true representation of what happens during a monetary collapse. I suspect that too much of your thinking is wrapped up in the 'normalcy' of the dollar system. You've never known anything else and can't imagine a society functioning without the dollar. Therefore, if the dollar is no more, then trade must be no more, and that is simply not true. If allowed, the world will move on to another medium of exchange. Gold can easily serve that role, if allowed.

In conclusion, your arguments do not convince me that gold will become worthless during a collapse. While it is impossible to know the details of how the economy would reorganize itself, it is virtually certain that gold will continue to play a role as a tradeable store of value...something the paper dollar has been failing at since 1913.

Diversification

Diversification is the key:

Food/seeds/"asset protection" is the currency for complete and utter meltdown, SHTF scenarios,
PMs are the currency for hyper-inflation & currency melt-downs w/out serious impact on infrastructure.
Bitcoin is the currency for slow degradation of fiat currencies.

Be prepared for all scenarios.

IF you buy precious metals as an investment to trade for profit

...then your argument makes more sense.

It's true as inflation rises, you can make a profit.

But if you buy metals so you have something to use as currency after a total collapse (which most likely won't happen in our lifetimes), then your argument is baseless.

I believe you can never go wrong buying precious matals unless the U.S. government declares a major change in currency valuation in relation to precious metals.

But even then, the metals will be worth whatever someone agrees to give you for them - or trade goods and services for them.

That being said, you have to use common sense when buying or investing in anything.

Keep your percentages down to a reasonable level (like perhaps no more than 25% of your net worth).

That way your diversity of investments would save you from a total loss of value in a worst case scenario.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

It's bunch of nonsense. For

It's bunch of nonsense.
For you dollar colapse means the America and the world will fall into the state invisioned by Hollywood. It will never happen.
Slow down and learn from history what currency collapse really means.
I leaved thru one.

Wow. OP, please read an

Wow. OP, please read an economics book, preferably written by an Austrian economist.

Currency is a medium of exchange, NOTHING MORE!!!

All five of your "reasons" are based off of the assumption that currency performs functions in addition to simply being a medium of exchange.

Our economic prosperity comes from exchanging the fruits of our labor with the fruits of others' labor under the concept of the division of labor. I do what I'm good at for people who aren't as good at it than I am. These people do the things I'm NOT good at, and we trade. Currency just adds efficiency to trade.

Money is not a store of value, because value is subjective. It is not a unit of measure for value, because the value of money is ALSO subjective.

We do not work for little pieces of paper, or cows, or leather, or clams, or shiny metal bits.

We work for others so that they will work for us.

"I do not add 'within the limits of the law,' because law is often but the tyrant's will, and always so when it violates the right of an individual."

I think there is "some" merit to the "reasons" and questions

posed.

Mad Max (yes I know it's fictional) traded and warred over gas - oil - food - water. Those were the "big" tradeable assets. I'd throw salt and tools in there as well.

American Indians, Africans (pre-colonial), and Aborigine did not trade gold -- what did they trade (the most heavily).

#1 Animal Skins
#2 Pemmican (which when made properly lasted a year or more)
---Pemmican is fat-packed meat -- the fat sealed the protein (water macro-nutrients) from spoilage. Quite tastey.
#3 Knives (gutting and skinning tools)
#4 Women (sorry ladies, but in Mad Max times YOU become a commodity)
#5 Woven Garments - Baskets - Clothes
#6 Corn and some Grain Trading

For European Tribal Society there would be added Livestock trading, Fertilizers, and Grains -- given that during the last epoch of Indian, African, Aborigine tribal period they were not trading heavily or at all in these.

That's the bulk of it -- sometimes land access (to take meat, veggies, water, or fuel) was granted, when adjacent lands were un-producing for whatever reason.

But I don't think we'd "Mad Max" for too long -- pocket communities would come up -- Roaming Rapists and Cannibals would necessitate "ORDER" and police-militia (and unfortunately protection schemas) would arise; society would re-born.

The wisest thing would be to hold onto your gold -- for the "after" reconstruction period.

In a true Mad Max world gold would have less value as the USE-of-Gold and it's super-high-value came long after capitalism and democracy began.

Apologies

But I still disagree with the post.

And, if I'm not mistaken, wasn't most of the Gold found in the America's belonging to the Mayan, Aztec, and Inca people? Didn't they believe that it belonged to the Gods and was not recognized as a store of value until the discovery of their possession of it by the Spanish? So why does the Native American explaination have anything to do with the relevance of the arguments in the post?

Great Point

All those insane and cruel societies did indeed believe that gold belonged to the Gods -- they were horribly cruel to indians outside of their culture and all of them are gone now, smile.

So by your logic I might argue that all gold-bug societies have died and will die.

We are moving to a virtual reality (more and more) and we are choosing it -- look at the medium to which we are having this conversation.

How do you know you are not talking to AI from the future, wink.

Whenever you read a post like this .......

you can be sure of one thing the author has NO assets to protect. What do you do with all your dollars AFTER you prepare for the dollar collapse? Convert it all to cash and use it to start fires? There will be currency after the dollar collapse and 6 thousand years of history tells me that precious metals will indeed be very valuble again.

PLEASE TAKE DOWN THIS POST

The absolute nonsense in the post demeans the credibility and value of Daily Paul. The writer has no basis in fact for his ill founded opinions.

RON PAUL is the GOLD STANDARD of politics, his value never changes; it's tied to the CONSTITUTION!

Questions to Ask Yourself

Re Reason 1: Assuming you have some junk silver, why not spend that on food, first? If someone offered you a silver dime for your extra garden hoe, would you take it? If you were going to travel to another area to trade, which would be easier to conceal, a hoe or a dime?

I like your thinking on this, in the same way I've never wanted to go to heaven for the gold streets. Who needs gold? I don't. Very untempting. But, it is useful as a medium of exchange, and that's true in very, very poor parts of the world (name a third-world country), now. I don't see that changing, electronics or not. Food spoils, gold doesn't.

Re Reason 2: Why mint them for free? Anybody can mint gold--it's low-tech. Who says it has to be minted? Gold is exchanged by weight. Of course, I'm here in gold country (California), but I don't think that's a problem.

Re Reason 3: To make this case, why didn't you put "Immediately" in front of "After" in your heading? What makes you think that state of chaos will last forever? Isn't a new medium of exchange necessary to pull us out of it? Won't people realize that a genuine copper penny is worth more in exchange than a paper dollar bill?

Re Reason 4: Did you mean this as a reason gold will be worthless, or a reason gold will be worth more?

Re Reason 5: If this reason is true, how do you explain history? During most of history, we did not have mass production and manufacturing, but gold was still valued. Silver coins put in water help keep it fresh and drinkable.

Don't confuse the immediate chaos that will occur after a collapse (if any), with the natural stablilization that tends to happen afterward, often using gold and silver. Gold and silver can also go into a bubble, but we're not there, yet.

What do you think will happen if Australia announces they're going back on the gold standard during this time? We could have a new reserve currency overnight, and in order to meet demand, they'll be buying what?

What do you think? http://consequeries.com/

This has to be one of the most uninformed posts I've ever seen

on this topic.

#1 - am I supposed to take this seriously? Ahem... You'll use the gold and silver COINS that already exist - directly. THEY ARE MONEY. (right now they are)

Right now, there are gold and silver coins that are minted by various governments around the world. There are still many coins in existence that were minted previously. Some of these, like old dimes, quarters, halves, and dollars, and their gold counterparts—quarter eagles, half eagles, eagles, and double eagles—are in large supply. Just like you use a quarter at the store now, you'll use silver quarters in the future. You'll just get a lot more in goods and services for that silver quarter than you do for the current copper-nickel variety.

This takes no imagination to understand at all. Seriously?

#2 - See my response to #1.

#3 - Likely not at first, no. Yes, chaos will reign. This won't last forever. Either people will die off, or be killed off. The elites can't hide in their hole forever, and they'll want slaves to do their bidding. Most likely though, they'll try to set up another fiat system as the current one is in its death throws. They stand to lose quite a bit if it all goes to pot.

#4 - Irrelevant. EVERYONE will simply go back to using gold. We've all done it before, no reason we can't again. Reserve currency issues only have to deal with how fast or not the other countries decouple.

And for the record, the dollar is NOT the reserve currency. The Federal Reserve Note is.

If it really is the dollar, than when the U.S.A. starts using dollars again (which we aren't right now) then other countries will simply peg their currencies to our real dollars. That will be a rising tide that will lift all boats. Every currency will appreciate, because they will be tied to a real currency again.

#5 - I don't even think that is worth replying to. Mass production has zero to do with gold or silver being used as currency.

You obviously have little or no understanding as to WHY gold and silver ever became money to begin with.

They were settled on BY THE MARKET as BARTER.

They solve the problem of coincidence of wants.

They were chosen over many years, and many transactions for very specific reasons:

#1 - They are elements, thus they cannot be created by man, and thus the supply is relatively stable and fixed.

#2 - They are homogeneous. Being elements, they can't be broken down into disparate parts. Divide gold or silver all you want, you still have gold or silver.

#3 - They are ductile and maleable. They can be shaped into useful items, and items of convenient size.

#4 - They are fungible. Two half ounce coins have the same purchasing power as one single ounce coin, etc. This is not true of diamonds for example. A 1/2 ct. diamond is not worth one-half a one carat diamond.

#5 - They have a high density. This makes them relatively hard and durable, but also small by volume compared to their mass. Thus you don't need a large quantity of them to have a decent purchasing power and you can carry them around easily. Salt and grains have failed in this regard. Oil also sucks as a currency for this reason. (being a liquid is also problematic)

#6 - They are generally stable elements. Gold is one of the least reactive elements. It doesn't tarnish. (but you can wear it away after prolonged handling - hence the practice of alloying it with other harder metals) Silver does tarnish, but compared to other metals in their group, it fits all the other needs above.

#7 - They are useful in many industries. This means on their own, as commodities, they are widely desired and demanded. This means if we started with barter all over again, these two would settle out as the most traded just as they did originally.

Because of the above reasons, even if an attempt is made to implement something else entirely, gold and silver will always be money, and we will eventually go back to using them every day as such.

I suggest you do some reading on the subject - particularly - mises.org.

Idiot

This guy has no concept of what money actually is.

My sentiments

exactly

Leges sine moribus vanae

Thanks for the news

When one stores food it eventually spoils though if I didn't throw out the roach infested rice, the roaches would have part of the food supply

Any weeded lot is an excellent place and roadside brush is wonderful place for potatoes and with enough stored empty water bottles one can still be generous after deserter strikes.

In Philly PA RichardKanePA

As long as gold is a scarce

As long as gold is a scarce resource, it will always be valuable.

To whom?


If you can't buy Food at the Supermarket with gold,
and you can't pay your Income States with gold,
and you can't pay your Property Taxes with gold,
and you can't pay your State Taxes with gold,
and you can't pay your Medical Bills with gold,
and you can't buy a Car with gold,
and you can't buy clothes with gold,
and you can't heat your home with gold,
and your Employer does not even pay you in Gold,

...then of what practical value is Gold besides just as a piece of trivia....or a showpiece?

You can't really do anything with it.

But furthermore, the price of Gold & Silver have been manipulated by J.P. Morgan, COMEX, Big Banks, etc., such that whatever value it has is easily warped away to virtually nothing anyway.

For example, Silver was at $50 (49.5) over a year and a half ago. We've been printing lots and lots of paper dollars so it should be much, much higher today. But it's not, it is a whopping 40% lower ($30) than that value.

So where's the value in that.
It's just a shell game folks....

The only safe store of money is food and the real estate that you live in.

Bull

"If you can't buy Food at the Supermarket with gold,"

I buy my groceries w/silver but the grocery store also accepts gold

"and you can't pay your Income States with gold,"

Only a murderous traitor would pay federal taxes.

"and you can't pay your Property Taxes with gold,"

true

"and you can't pay your State Taxes with gold,"

true

"and you can't pay your Medical Bills with gold,"

My dentist accepts gold and silver. So does the pharmacy next door to his office.

"and you can't buy a Car with gold,"

Yes you can.

"and you can't buy clothes with gold,"

Yes you can.

"and you can't heat your home with gold,"

My heating oil and propane dealer accepts gold and silver

"and your Employer does not even pay you in Gold,"

I pay my employees a combination of both cash and metal.

DISCLAIMER:
http://youtu.be/2n34eeXWjUQ

Fancy Shmancy Fine Print:
http://youtu.be/plIH98Kxu58

deacon's picture

i coudn't agree more

i think we can all agree that there has been one war
started to steal the others resources,gold/silver other assorted
precious metals
i bet there is nothing in the bible about what happened to
solomons temple and what was carted off,nothing about any gold/silver goblets and other assorted tools made of gold/silver
lavers ect ect
gold and silver have never held their value over tile
that's why no one has it,or even collects it
oh never mind,i was wrong,that did happen,and people do

setting your expectations to high,can cause depression

Clueless much? You can do all of those things with gold. Just

because we don't ALL currently do so for EVERY transaction doesn't mean it can't or doesn't now happen.

You claims are not only false, but beyond the absurd.

Nope


Try and pay your Income Tax bill with gold and see what happens.
Try paying your Auto Loan or Mortgage with gold and see what happens.

The only thing "absurd" is denial.

libertybaby has been hitting

libertybaby has been hitting the anti gold and silver posts for atleast 4 to 5 years. She/he/it does not have a clue.

Thanks

This is coming from the guy who predicted $75/oz Silver (or whatever) and Silver "going to the moon"

lol.. nice try. It's coming.

lol.. nice try. It's coming. just hold tight a little longer. Did you buy silver 11 years ago at 4.00 and 5 .00 bucks an ounce? ofcourse not.

deacon's picture

i applaud your efforts

with your advice and info,coupled with the silver/gold
post here
we took that advice and got into silver at $8oz
now it is around $30,so if i had to worry about rent/taxes/food
ect ect,at almost 4 times the amount now,talk about a better rate of return
anyways i wanted to personally thank you
deacon

setting your expectations to high,can cause depression

as I lay my tin-foil hat aside

WTH? R-U-O-K?

Have you not followed what the guys over on GATA have been looking into?

http://www.gata.org/node/12028

Or some of the news from 321 and/or The Daily Bell?

http://www.321gold.com/editorials/russell/russell121312.html
http://www.thedailybell.com/962/Gold-Manipulation-Goes-Mains...

The only safe store of money

The only safe store of money is food and the real estate that you live in.

And what has happened to the "value" of real estate the last 10 years? Some store of value that is. And food, when you account for inflation, the real price of food has decreased worldwide over the last 100 years. Not much of a store of value there either...

If you really want to store value, learn the following 2 skills:

  • To create
  • To trade

Master that and you will never go hungry... because you will always be worth more to your neighbor alive than dead.

Prevent social chaos. Become the bank.

Forget the fact that after a dollar collapse, he who possesses the largest horde of gold and silver in town will then be the biggest banker in town. Yarger Bank is now open for lending and deposits. How else is the food going to get from the field to the grocery shelf to the dinner table?

The dollar tanks. The old bank goes out of business. The gold in the safe deposit box owns the vault. New bank opens with gold on the balance sheet.

DISCLAIMER:
http://youtu.be/2n34eeXWjUQ

Fancy Shmancy Fine Print:
http://youtu.be/plIH98Kxu58

Real Money

Real Money is merely the storage of work energy.

Just as putting all the oranges in a warehouse is storage or work energy.

Gold and Silver are merely the best form of this.

People will always wish to store their work energy.
It's a basic function of the whole entire universe.