Comment: That's what these articles

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In reply to comment: why all the hubub over bitcoin? (see in situ)

That's what these articles

That's what these articles are for. To explain the reasons for the excitement. Atleast after reading these articles, you will actually be able to articulate your reasons in detail for sticking to gold and silver.

Personally, I think only the people that bought into gold and silver early will be able to retain their value. For one, if the second great depression hits, the government will cap the worth of the certificates from increasing in price (yes, THEY CAN DO THAT). This will not burst the gold and silver bubble, but it does put a user at more risk when they don't sell their gold and silver immediately at that exact point in time.

Why does it put you at risk? Because the gold and silver price HAS severely plummeted in the past during a great crises. That's when supermarkets run out of their stock and riots break out in order to obtain food. During a crises, people will start hoarding more food as a safety measure and supermarkets won't be able to keep up with increased demand. In those cases, it makes no sense to hoard gold, because you can't eat gold and silver during those times. As a result, the demand for food will exponentially increase and the demand for gold and silver will severely dwindle, lowering its price.

And in today's world, supermarkets run an even greater risk of selling out their stock than during the last great depression. For the simple reason that many supermarkts now employ the JIT method in order to reduce storage costs:

http://en.wikipedia.org/wiki/Just_in_time_(business)

The JIT method requires STABLE DEMAND. If the demand suddenly increases, you will get shortages. Because of this method, a run on food can deplete supermarket stock in less than two days making the scenario I described that much more likely to happen in today's world. You can kiss your "storage of value" mantra goodbye in such an event.

And it isn't just gold or silver. I wouldn't reccommend holding BC during such times either. The best way during such a severe crises is transforming your money into LAND and not gold/silver or BC, because land can produce food. But you need to buy it early, because land is getting more expensive as time goes by.