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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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how do these old posts keep getting bumped?

who is it that finds these old posts, and then comments on them after 2 years?

haha

your theory assumes everyone has nothing and can create/provide nothing for others. which is obviously, untrue.

Gold is currency/money. There will (always) be people with excess food, water, goods and services that will be willing to trade for something that stores it's value (doesn't corrode or decay in a short amount of time) so that they can, at a later date, trade for things they wish to have that others with excess are providing.

Also, other assets will be currency, some will just decay faster than others...

I use Blue Wave, but don't expect one of THEIR silly taglines.

Gold is nice to have and its a thing that has value to some.

What do you have against gold? Get some gold get some silver some food stores,some water.Get your self a good knife or two.Get some guns and ammo.Have some like minded friends.Stock up on things you use,even things that come your way,save them.Learn to grow a garden and some live stock.Learn to hunt and fish and snare game.Get some animal traps even rat traps for small tree varmets.Learn what wild plants in your area to eat.The thing is to try and become more self sufficient.
Gold and silver may come in handy someday.Go have some fun and enjoy yourself. :)

I love liberty like fresh cool air in my lungs.I love freedom like fresh cool water on my tongue.I love peace like the smooth skin of my sweet lady.And Dr.Ron Paul is the hero I believe will change the world.

If only we could look to history for answers!

Oh, wait, we can. And not ancient history.

http://youtu.be/7ubJp6rmUYM

Love or fear? Choose again with every breath.

That's about the most short sighted hit piece I've ever read

#1 - we'll use gold (AND more likely SILVER) directly again. No need to "sell it" for any paper.

The absurdity of this idea that in a collapse you will "sell your gold" illustrates why someone who thinks like this is not only clueless, but who will likely be the one trying to steal from you in a collapse because they didn't prepare and don't have any gold or silver themselves.

#2 - The coins are ALREADY MINTED genius. They are called Double Eagles, Eagles, Half-Eagles, Quarter Eagles, Dollars, Half-Dollars, Quarter-Dollars, Dimes, and Half-Dimes. They presently exist in not-insignificant quantities.

And I dare say, this begs a beyond the obvious question - WHO MINTED THEM IN THE FIRST PLACE AND WHY? There's no more reason to believe no one will mint coins after a paper currency collapse than to believe they were never minted in the past when there was little or no paper currency. You'd swear some people think the Earth didn't exist before they were born.

#3 - they won't need to and they shouldn't but they will. And more than likely, they'll have it ready to roll out right away. Unfortunately for them, as with ALL such prior examples, the first three tries will fail.(at the least) We may eventually settle with another paper currency, but I'd bank on using real coin for a decade or two.

#4 - they'll switch back to gold to settle international payments, just like before WWII. Several regions already see the writing on the wall and are trying to beef up their own bi-lateral trade in home currencies to insulate themselves from this shock to the system. The World Bank is trying to do the same with IDRs. The world knows the Federal Reserve Note is doomed and they are all warming up the car for their bolt to the exit. *note, the DOLLAR is not the world's reserve currency and will not collapse. The Federal Reserve Note is that beast. Do not confuse the two. The Dollar will be what you use as money after the FRN collapses in value completely and its purchasing power will be quite strong.

#5 - historically absurd. Sure, economic depression will ensue and production will plummet. Real money will slowly bring us back from the abyss and improve confidence to start the engine again- at a more healthy and maintainable pace. You'll use gold and silver after the collapse for the same things you use paper currency for now - food, rent, gas, utilities, entertainment, etc. The world will not freeze frame. Why? because people have to eat. That's what the market IS - people trading their goods and services so they can EAT.

Will people still need food, clothing, shelter, medical care, among other things after a collapse? Then someone will be trying to provide it to them because those someones need those things too. That's how the world works genius.

===================

Clearly the OP has no clue or concept about what the "market" actually is or why it exists.

There is no such thing as "the economy."

It is not a machine you can turn dials or flip switches on.

It IS every single human trading what they have for what they need and want.

This fact is why command and control government economic policy fails every time. Such hubris is ignorant of this basic fact.

This is a very ignorant

This is a very ignorant article.

Wow!!!

You just don't get it.

buddy

For the honest and awakened

For the honest and awakened gold will always have value. Gold is an honest person's currency. If you want that in your world,teach your children well and don't accept anything less. Shouldn't we be asking ourselves how we can keep awakening others? Our communities?

At some point after a collapse, honest men and women will wake up and see that all along they were scammed through their fiat currencies. Maybe that will take a while. But those who wake up to this will survive and those who don't will end up as slaves ...or worse.

We have awakened soooo many with our message. Now is no time to question it. And I have faith that somewhere,somehow, some group of people in this wide world will keep the truth alive.

Farmers and fisherman?

Wealth will still exsist and gold and silver will still be traded if the scenairo you describe even happens. Dollar collapse will not likely happen overnight either. Of course commodities will also be a good investment as well. Gold and silver are not going to zero and the world isn't coming to an end.

The dollar won't collapse at all.

But the Federal Reserve Note will, and it most likely WILL happen literally overnight, probably on a Sunday. There are lots of reasons for the timing, but when it starts, it will be quick and brutal. Remember 2008? Capital flight nearly body slammed us in a day or so. A real complete collapse would be very ugly and very quick.

Gold is no longer the

Gold is no longer the standard. The bar has been raised and now the worlds strongest military is the reserve. Take our money or else. I think this will continue even after America is no longer the mighty military industrial complex. Force is the new reserve.

You gotta pay them soldiers with something.

Conscription only works so long as well.

Every attempt at what you are suggesting has failed miserably because it ignores the reality that people have to eat.

Worthless currency means they can't afford to eat.

No amount of force is going to stop millions or even billions of people from using an alternative.

Kinda depends on

what replaces the FRN. If what replaces the FRN is backed by gold then you would probably win big. You could convert your gold to the new gold backed currency and the gold price will likely be higher than it is now.

Also, if the FRN goes bust, it is likely that the BRIC's may act to create their own currency that is backed by gold, so you would have the option of converting your gold to another currency.

If the dollar collapses, whatever replaces it will no longer be the worlds reserve currency, in fact, I believe that the days of a single reserve currency would be over.

From the FED itself...

I see TPTB chip away at "acceptability", but other than that precious metals are exactly that, precious.

What is Money?
Anything widely accepted as final payment for goods and services

What are the functions of Money?
Medium of Exchange
Unit of Account
Store of value

What are the characteristics of money?
Acceptable
Divisible
Durable
Portable
Scarce (non-counterfeit-ability)
Stable

http://www.philadelphiafed.org/education/teachers/resources/...

Truth is Treason in the Empire of Lies

Old thread

Why are threads from 2012 making it to the main page today? The post about Ron being a potential VP nominee is also old.

******************
"To prove this, let facts be submitted to a candid world."

The_Gunslinger posted today

The_Gunslinger posted today meaning it appears dug this up. Why? Who knows.

Interesting.

It popped up as new, so I posted a response. It was late, and I didn't notice the date. Hmmmm?

If you did not dig it up then

If you did not dig it up then whom or what is? Strange all these old post are finding the front page.

You fundamentally don't understand anything about economics.

I mean nothing at all. This write up has way, way more misconceptions than even your average Keynsian or liberal. You need to take economics 101 because you don't even understand the meaning of value. You continually compare gold to the value of the dollar, yet your entire premise takes place in a world where we accept as given that the value of the dollar is zero or very near zero. So how can a comparison to its value have any relevance or meaning?

You have a lot of homework to

You have a lot of homework to do. I gave up reading your article after this in article #1: "$1000 worth of gold for $5 worth of food" Since the dollar has already collapsed what are you basing any worth on? Food or gold? You can't buy anything with the confederate dollar which is what the US dollar will become when it collapses. It will be the purchasing power of gold, as I see it, that will determine its worth, both globally and domestically.

Let me break this down like a fraction.

1. There is a very real reason that China, Russia, and India are all stockpiling PMs.

2. Gold and Silver have been currency for thousands of years because people around the world recognize their value. If you assume the end game you have hinted at, then you must realize that at very least other foreign markets will survive the dollar crash. These markets will still value PMs, and thus through trade, PMs will retain their value when the dollar is dead and gone.

3. Gold and Silver do not need to be traded as whole pieces. A file and a scale is all that is needed to conduct smaller trades. It's all been done before, by far less educated people.

4. If you believe that you have this thing figured out better than the Chinese who have typically excelled at business and trade, and chose to ignore points 2 and 3, then I suggest you sell your PMs to me at below market values as soon as possible. Seriously, contact me and we'll make a deal.

If that doesn't prove your error, I don't know what would. I'm willing to buy your PMs, just as others will be willing to trade (buy) your PMs after a collapse.

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.