What good is gold?
Submitted by jshowell on Thu, 09/18/2008 - 10:02
I have a question for those people who are into buying precious metals. How are you going to sell it if no one has any money to buy it off of you? Have you set up a network of people who will buy your gold if the value of the dollar is destroyed? How will they get the money if they're bankrupted as well?
If you can offer an idea about how selling metal works when the monetary system collapses please let me know.
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buying
.999 fine silver shot -bb size- might be a good way to make smaller type trading possible; i.e. a loaf of bread, a dinner etc.
To truly understand the value of gold
You must "break out of the matrix" and realize that it and silver are the only real money that has been in circulation for thousands of years, has been good across cultural and geographic boundaries, and has held its value perfectly.
Do you know that every single day someone asks this question and once they understand that Federal Reserve Notes are 1) Worthless and Meaningless 2) Constantly inflating 3) On loan from the Federal Reserve
then they see how it makes perfect sense to buy gold and silver every chance you get.
It's about purchasing power and that's it.
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Sell It?
You're a mighty hopeful soul!
When everything collapses, gold & silver will be traded for food. So will ammo, spirits, services...
If you folks are buying as an investment tool, you're on the wrong website.
I may not know the truth, but I know when I'm being lied to...
I may not know the truth, but I know when I'm being lied to...
In complete collapse the
In complete collapse the gold will become the money as others have already explained. In the interim when things “Are” spiraling downward most places you bought the gold will buy it back and gladly give you ever decreasing valued paper for real money.
So what do you with almost worthless paper? Since you have a lot more of it now you pay off things like mortgages and loans etc. that according to the contract still require the same amount of paper to pay them off but now you can get a lot more of those pieces of paper for several ounces of gold or silver. In which case you protected you wealth and assets from the currency crash of the fiat dollar.
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good point
Fortune Favors the Bold
in the event of a true systemic collapse, paper promises of gold ownership probably won't mean much
Fortune Favors the Bold
and now for some silliness
Fortune Favors the Bold
"dig up virginia boys"
http://www.youtube.com/watch?v=P99grcBer30&feature=related
Fortune Favors the Bold
You betcha
and people who have not purchased gold for the purpose of future use as money will be doing the following:
- Melting down jewelry
- Extracting tooth fillings
- Melting down silver and gold tableware
- ripping catalytic converters out of cars to recover the platinum
Just a few helpful suggestions for those in the need.
Mad Max? You got it...
Here's what I've gleaned-
If you have some disposable income that you can sock away until a Mad Max scenario happens then buy gold. Otherwise buy food and disposable seeds.
What financial systems will stop working when the dollar is worth nothing? So far the only thing I can think of is credit cards.
http://killfiat.blogspot.com/
NO...I would buy small coin
NO...I would buy small coin gold and silver now and stock up on trade goods now, along with plenty of self-defense items.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Gold can and will
be traded for food, goods, water, etc. That is why I recommend getting .10oz gold eagles for trade/survival.
Converting the dollar to gold also sends a message to the Fed that people believe the dollar is bogus and manipulated by them, which it is.
Small coinage will be the
Small coinage will be the best to use for exchange, that and trade goods such as razors, soap, spices, rope, medicines, knives. Also, remember along with trade goods it will be good for each of us to have an actual knowledge of a trade that would be useful in such periods. I happen to be a blacksmith in my spare time, but potters, woodwrights, etc. would also be useful during the depression years, which will probably be long, say 20 years depending on how bad the government and the FED mucks things up.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Are you?
A Porch Dweller? If you don't know what I am talking about, just disregard.
Nope...not a Porch Dweller,
Nope...not a Porch Dweller, just a relative average old man here concerned about his country who saw the effects of the tail-end of the Great Depression.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
By the way
By the way, if you are thinking about buying some gold or silver, you need to get your ass in gear. The Fed is spraying Wall Street with a fire hose of cash and the market is still wobbling around like it has been kicked in the head. Gold climbed $90 yesterday. Somebody BIG got into the market in a BIG way. And last I looked gold was up and holding steady today. Do not gamble that it will go down again. It may. But I personally wouldn't bet on it.
Yup
Although gold has been the most valuable of all money throughout the civilized world for all of known history, it will probably be worthless here. I would stay away if I were you.
Kidding aside, I assume you know who Alan Greenspan is? The King of Central Bankers for most of your life. Do you know what the first words out of Greenspan's mouth were at the begginning of every working day of his life as Fed Chair? "What's the price of gold?" Do you know why? Because gold is money and dollars are a scam. The health of the scam could always be measured by the price of gold. When the dollar scam collapses, gold will still be money. You don't have to trade gold for some paper bills. You need to stop thinking in terms of gold as a commodity that you will trade for dollars. The dollar is dead. Gold and silver will be the new money. At first just traded out of people's hordes. But eventually issued by some smart country.
It will have value regardless
I'm about as far from a goldbug as you'll find on this site, but even I can concede that gold and silver will continue to have value regardless of the economic conditions.
If the stuff really hits the fan and the dollar is worthless (I doubt it will happen) then a silver quarter might buy you some food, a gold coin might buy you a gun, a gold bullion bar might buy you some property in Australia.
Gold and silver have had a very stable value since the beginning of recorded history.
What do you think about the war on drugs?
How about Operation Wall Street?
Shout it today!
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The problem is that will all
The problem is that will all the dollars that the FED has been creating over the last 20 years and now on top of all that money they are pressing even far more money and future debt obligations into they system, the dollar is yet to see the full impact of such inflating. When such massive inflation begins to bid against the dollar you will see the already depreciated dollar depreciate to the point that hyperinflation consumes economic growth.
Trillions of dollars have been created, you talked yesterday in one of your post about the S&L debacle, we are still creating money to pay for that, I believe I read the annual "payment" for that is still close to 40Billion. Add that to the cost of war, cost of military expansion, cost of borrowing, cost of on and off-budget items, cost of bailouts, cost of just about everything we can imagine and much of what we cannot imagine and we have the perfect receipt for an absolute collapse of the fiat currency.
The thing is, like the former head economist for JP Morgan Chase said in an interview the other day: “The economy has reached its debt limit and is entering its insolvency phase. We are not in a cycle but the end of an era. The old world of debt pyramiding to a fraudulent degree cannot be restored.”
The massive, unrestrained multiplication of debt will demand more and more from the economy that it will be consumed by that debt. The system, as all fiat systems in history prove, will end in massive insolvency and thus the total destruction of the currency. Eventually, as much as the FED and the Government likes to print its Fiat Money, it will not be able to stem the cascade effect of the massive debt upon the economy. The inverted pyramid of debt is so top heavy that it will, after twisting, turning and tilting more and more erratic will ultimately and completely crash.
The reality is facing the whole system and it is not a pretty reality. The totally unprecedented events and the unprecedented actions being taken during this period, while unprecedented, are following the same basic pattern of destruction that every fiat monetary system goes through.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
When the fiat money system collapses,
there is no "money" to sell the gold for.
The gold becomes the money, just like gold and silver were for thousands of years. You use it to buy things with, as a trade streamliner.
When you are hungry, you go to a farmer for his beef.
The farmer says, "Well, I will trade my cow, but I don't really need that used car you have for trade. And it's too bulky and I can't drag it over here, and I have no gas for it anyway. Don't want it."
And then you say, "I also have gold, which acts as a valuable medium of exchange, and I can give that in trade for the cow, and then you can trade(spend) that gold on whatever you want to buy with it from another person".
"Deal", says the farmer.
And you have your cow.
This is the way things operated for thousands of years. It works.
Only recently have people been deluded into thinking money is "money".
In summation, you don't "sell it". you use it as money itself.
If you have to ask the question,
then it is probably no good for you. So don't buy it, don't think about it. It is only good for those with common sense, of which there seems to be very little left apparently.
Wisdom from reflection
You contribute nothing
In case you don't have enough common sense this is a forum for HELPING.
If you have experience with buying and selling gold put your information on this poster.
Some people never learned childhood lessons-There's no such thing as a dumb question, Do unto others as you would have done unto yourself, and if you don't have anything nice to say then keep your mouth shut.
http://killfiat.blogspot.com/
Many Places
Coin Shops, Jewelers, Pawn Shops, Bars, Tobacco Shops, Direct Exchange etc.
Also during the Argentinian currency collapse I have read that local police (unemployed) set up "gray markets" for a fee, where gold and silver could be used for exchange along with paper currency and direct barter.
I recommend having cash and metal in your emergency reserve, then you're covered.
-LF
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"Let the good heart speak words of true peace, not inciting others to further war." -- B.I.S.
In my opinion, gold is good in DEFLATON if you have more cash
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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and cash equivalents than you can safely protect. In deflation, many financial institutions fail and I believe that we are seeing the beginning of a major deflationary collapse. In this type of environment, I think that gold is good for a long term because the value of gold will not go zero, but as you said, cashing gold during the worst time might be difficult, but if you could hold until things get better, you probably have better chances of liquidating gold at that point, in my opinon. This is why I set saving cash as my first priority.
government of the people, by the people, for the people
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don't you understand that
don't you understand that the "cash" you hold is buying less and less everyday? with all these bailouts etc. the fed is reinflating with trillions of dollars.. the more trillions they make and put into the system, the less your cash dollars buy! we are not into deflation.. we are into deleverageing.. there is a difference!
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
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Is the bail out money coming to the middle class? I don't notice
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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that. It seems to me that things are getting cheaper like houses, stocks, cars, etc. If it wasn't E85, I think that food would be cheaper. In my opinion, the real reason for pushing E85 was to fight deflation. I also think that one of the reasons to go in to the middle east was to lower the supply of oil to fight deflation.
government of the people, by the people, for the people
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"debt is really a 'dollar short' position"
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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Inflate Or Financial Tsunami by JayTaylor
http://www.gold-eagle.com/gold_digest_08/taylor090608.html
In the article, Jay Taylor wrote,
http://www.depression2.tv/d2/node/181#comment-848
government of the people, by the people, for the people
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gold is money! it will take
gold is money! it will take the place of paper dollars and be traded between parties for settling accounts! just like it did a 100 or 200 years ago! GOLD AND SILVER ARE MONEY... JUST NOT COMMODITIES!
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
The object of gold and silver
in this time is only to preserve the wealth you have through bad times. Make some money here and there. It is after the worst of it that you sell. A dollar can go to 0 worth. Precious metals will always be worth something, and can even buy your food when the currency is worth nothing. Wal Mart or the grocery store may not take your gold, but the farmer down the road sure will.
DON'T THINK FIAT....remember
DON'T THINK FIAT....remember Fiat Money is not money, it is nothing more than a legal notification of a debt obligation, an IOU...nothing more and only legal tender laws have forced its use as a medium of exchange, i.e. money.
The main problem that people seem to have when it comes to gold is that they think in Fiat Dollar terms, they think of investing in gold and a return in Fiat Dollar terms. When the Fiat Dollar collapses due to hyper-inflation, the only currency that will be of value is gold, silver and trade goods in the beginning. People will always trade goods and services for gold and silver because they are considered hard asset values. Remember you will be NOT SELLING gold and silver for Fiat Dollars, you will be using gold and silver as a monetary unit of exchange; gold and silver is money, not just commodity metals, but commodity money. Now, if the collapse of the currency is as complete as I suspect it will be and as history teaches such collapses are, then there will be a while when heirloom seeds and trade goods will be much more "valuable" than gold or silver, but as people begin to create commerce, the two metals and anything else of value will once again be used.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Thinking away from Fiat is a major step
I don't know of any store that accepts commdities as money.
Sounds like a Mad Max scenario.
Does anyone have a list of grocery stores that accept silver coins at spot?
It seems like we'll all be trading precious metals to pay the mortgage every month.
http://killfiat.blogspot.com/
Not yet, but when it takes
Not yet, but when it takes 100 or 500 or 1000 or 500,000 or 1,000,000.00 of those Fiat Dollars to buy a loaf of bread people will begin using real money. It always happens the same way when Fiat Money is destroyed.
Make no mistake about it, it is a Mad Max Scenario!!!!!
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes