3 votes

Why hold metals

I'm a newbie. I have some silver and gold that I bought in early 80's. I have a relative that convinced me not to sell when it peaked.
What good is it going to do me if the dollar collapses? I ain't gonna be able to by food or bills with it. Why does everyone here say to get and keep it? Don't understand the logic.

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SHTF Insurance

It is basically insurance against dollar collapse and an inflation hedge.

Gold moves counter to the USD just like Crude Oil. Right now, the whole world is piling into dollars and so gold is more expensive in other currencies, but cheaper in USD.

For hard values, look at ratios of one thing to another, rather than the USD price.

I don't purchase metals as a commodity speculator and I don't purchase metals using credit. If I were a metals trader, I'd only look at ratios.

The following is not to be construed as investment advice, since I am not a financial planner:

That said, how many ounces of silver can an ounce of gold buy? Right now, its around 65. If you bought silver right now using gold and the ratio narrowed to 40, then you could trade back to gold from your silver and end up with a gain in the quantity of your gold.

If I were just starting out, I'd allocate USD at a time like now when USD is strong and purchase a pool of both metals and then start trading them against each other. Doesn't matter their USD price at that point, you keep increasing the size of your pile.

Don't plan on having to use it

but have it in case already. Then after the economy gets back on its feet it will be worth a lot more than what you paid for it.
You want to be self suffieceint as much as possible. If you grow food, that is a way better bargaining chip in a crisis situation than Silver or Gold.
If you are fortunate to keep you silver though...

14 Reasons to buy Silver.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

Concise and current. Love it.

Thanks for that vid, Kelly. It definitely puts the numbers in perspective.

Loved the Tool reference in there, too ;)

If you don't know your rights, you don't have any.

fireant's picture

It's a single premium insurance policy.

If unused during your life time, it is transferable to your beneficiaries.
It is insurance against monetary calamity (what are the odds of that?).
It is the last refuge for storing wealth when everything else fails. Best to purchase prior to everyone else seeking that refuge.
There is no limit on the amount you can buy, and again, It's single premium!

Undo what Wilson did

What's so difficult to

What's so difficult to understand? In a dollar collapse, prices of necessities go to the moon.

So putting one's life savings, say $50,000 in the mattress OR the bank is stupid.

You better own something to balance it out. Something you can use for food, shelter, power, supplies OR something you can trade for those things.

Silver, ammo, guns, livestock, cigars, whiskey, SOMETHING.

You get caught holding paper when the rest of the world figures out that America The UnProductive is bailing on the dollar, then you'll be one sorry SOB.

At the same time, most people have to be engaged in the act of making a living. So you still need to make and keep some dollars.

People who aren't in debt and have some savings, need to keep a mix, that is highly dependent on who they are, and what their situation is like.

People who are in debt up to their eyeballs, and don't see a way out EVER, might need to think about a $2000 emergency fund, and a bit of gold silver. You might owe a bazillion dollars for the rest of your life, but if you don't have some kind of untouchable emergency fund, then well, frankly that person is stupid.

So many variables. But even the poor can hoard a little junk silver.

Thanks for your comments.

Thanks for your comments. However, lets say the $ collapses and there is chaos. How does the metals protect you then? When chaos hits its gonna be all about survival/violence. How do you point a weapon @ a starving family whom was once your neighbor? Can you justify it because they were un aware and didn't take precautions?
I'm a Christian and I struggle with these questions.

Plantin the seeds for our Savior. In the End Jesus wins!

Come on

So how about today when a starving family or starving criminal does a home invasion to steal your money to buy food .. how do you justify that when they didn't take precautions to get a job .. r u sure your not a troll

A troll? hmmmm no, don't

A troll? hmmmm no, don't think so. If someone comes on my property to steal what is mine , I will defend my family however necessary.
You missed my point, there will be people that ask for help. Neighbors, friends, extended family and strangers. Is' easy to say what you will and will not do when your not faced with that decision.

I hope we get up off our rears and try to wake the citizens up to what is really going on.

God Bless

Plantin the seeds for our Savior. In the End Jesus wins!

Labor and Trade will not stop

It doesn't all go 'Mad Max'. Crime does increase and you have to take precautions. That said, people will still have goods and services to offer on the market. There just is no reliable currency in the midst of a currency collapse to enable easy trade of these goods and services. That is where alternative currencies are useful.

Gold (and silver) have been used as both money and currency for six thousand years. It is a store of great value in a transportable form that does not deteriorate physically over time. It is divisible and has constant measurable physical properties. Gold and silver also have universal appeal, which is what defines a market driven currency.

I could imagine a future where I store value in precious metals using a private service that I trust which features a digital accounting system. I could then exchange digital gold on an exchange for something like bitoins and then use those (or the digital gold directly even) to purchase goods from across the world.

I expect people will use .22 ammo as a store of value and currency under the right conditions also. The current shortage seems to speak to that to some degree being the case.

Whatever keeps trade rolling. Whatever allows you to be paid fairly for your work and allows you to purchase what you need and want.

Just give them

all your food and let your children starve .. that simple

Silver and Gold, Is, always

Silver and Gold, Is, always have been, and always will be, seen to have value and be used as currency around the world.

As for other metals, things that exist, they are tangible, and are functional, ie can be used to create things that improve lives, will be demanded, hence have value.

Its no "get rich quick scheme" it is a self preservation scheme though.

Today and yesterday. Silver money from 269 BC

"A predecessor of the denarius was first struck in 269 BC,... with an average weight of 6.8 grams."

The US Silver Quarter is 6.25 grams.

Silver coin was the lifeblood of US Colonial free trade. The British sought to tax specie and collect up the lifeblood leaving Colonialists to barter.

Gold, silver and bronze coins promote trade. The Greeks knew it 269 BC.

Free includes debt-free!