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Discussion Starter · #1 ·
Gold, Silver vs 50% U.S. Dollar Devaluation

Question...

If the U.S. Dollar was suddenly devalued internationally and domestically by 50%, would the value of Gold, Silver, and all other precious metals necessarily double in value simultaneously? Would the same be true about mining stocks?


Question...

Is it possible that in the very near future that the United States Inc. will have two different currencies, one to be exclusively used for domestic financial transactions, and one to be used exclusively for international financial transactions? Would either, or both, have to be backed by something of value such as a commodity, or a basket of commodities, or anything at all, or nothing, like now?


Please explain in as much detail as you have time.

Note: This was originally posted in the tread "Silver Trending Up/Down", but was recommended to have it's own tread.
 

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Depends, if you listen to Rob Kirby that is almost exactly what he thinks is going to happen.

He accurately predicted the deutch bank silver and gold manipulation that came out last week about a month ago.

I believe if the powers at be cannot find a solution to our current banking crisis we may end up seeing $10,000 per ounce gold, not because the gold is worth that now but because that's how many US dollars it will take to buy it. Maybe more maybe less that's just my opinion.
 

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I don't believe anyone knows for sure and I think certain events would have to occur before that to happen. I assume the government cares little for you and me and their first order of business is CYA.

As I understand it the $10,000 to $15,000 number being discussed is to cover treasury and FED debt at I believe 40-50% level. I take that to mean its not 100% gold backed. I believe that is to stop a run on sovereign debt though that level of finance is way above me and I'm just guessing.

It seems we are living in interesting times.
 

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There is a lot of chatter about fiat money, zero interest rates, debt, $10,000 an oz gold to make you consider or reconsider. I don't want to derail this thread but I wonder what steps to take to cover myself in either event. I have some ideas but that might deserve its own thread and not clutter up this one.

I think the ideas are sound and if there are then they may be of some help to others. If not then I need to know that too, possibly even more.
 

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In a real way we have been on a double financial standard - Debts foreign are paid by transferring gold reserves between vaults, while the money you and I spend are issued by the Fed backed by themselves and their guarantee of the sweat of your brow and not much else. The gold/silver/platinum/palladium index is a peg between 2 systems, much as the price of the Fed dollar is pegged against the euro, the pound, or the Yuan.

An ounce of gold... is worth an ounce of gold. You can assign a value of x dollars (or Euro or whatever) but all that is is an assignment - there is no real correlation between the precious metals (other than what "they" say it is) and reality.
 

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I no longer worry about the price (as opposed to the value) of gold or silver.

A quick way to evaluate the value of silver/gold.

If you have or can find a quarter minted prior to 1964, the silver content is 0.1808 oz which translates according to today's spot price for silver to $2.63. So you could probably sell that quarter to a silver/gold dealer or coin shop for about $2 to $2.30 depending on how good you bargain and how honest the dealer is.

The price of a gallon of gas in our area is about $1.20. In 1960 I could buy a gallon of gas for about $0.20. So that quarter is still valued at a little more than a gallon of gas.

Which probably tells you more about the value of the paper dollars we use.
 

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Hi:
I didn't bother to read all the rest of the answers.
They will all likely echo my thoughts.
In 1964, when the gold standard to the dollar was removed, Gold was $32 / oz.
Now it is over $1200 / oz.
That is an increase, (roughly 300% per $100), of Three thousand six hundred percent!. Just since I was a kid of eleven years of age.
Silver dollars are fifteen bucks apiece.
Of course, all other material goods are equally appreciated.
Bread used to be about two bits a loaf, now three or four dollars.
Gas, $0.25, now $3.00 or more, depending where and week.
Yes, Gold and silver will maintain value, because they are material.
Paper money is actually just an idea,
Gold and Silver are the standard of wealth because they are so Concentrated, (if that makes any sense). They were easier to carry than their equal barter value of goods. Then Paper was easier than Gold. Then Paper opened the gate of Checks, Your personal issue money. One check was equal to as many dollar bills as you wrote on it. But it was merely a promise of value, not the actual value of the "Good."
You are just as well off to put in your cache of "value" a shovel, knife, sewing kit, food, matches. Anything that you will need that you can preserve. Matches should likely be in a clean sealed jelly jar. Shovels out of the weather.
 

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Discussion Starter · #12 ·
Rob Kirby-Dollar Devaluation Clock About to Strike Midnight - Greg Hunter

Depends, if you listen to Rob Kirby that is almost exactly what he thinks is going to happen.
I believe that this is one of Rob Kirby's most recent interviews below.


Rob Kirby-Dollar Devaluation Clock About to Strike Midnight - Greg Hunter
Published on Apr 14, 2016

Could there be a dramatic and overnight reduction in the value of the dollar? Kirby contends, “I think this is coming in very short order now. The trail of bread crumbs is indicating this is what is afoot right now.”

https://www.youtube.com/watch?v=9FI01zevYxM
 

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Once the "move" starts - where it will end up at is anyone's guess... The most gifted minds say it could go ALL-THE-WAY...ie: $50k/oz ... Which works with the 20 Trillion USD debt, the 2T in currency, with 50% or more overseas anyway...and, our 8K tons of Au in Ft Knox (if you believe in that fairy tail, eh?)... no audit since the early 50's gives me NO warm-fuzzy about that being there...when the FED can't even "return" someone's Au (Germany) they were just "holding", eh?

The Silver to Au ratio of around 80 to 1 is unsupported when compared to rarity and costs to mine/recover. Not to allow for the "industrial use angle at all... Hence, I fully expect the percentage of "change" from "today's price to whatever/whenever" of SILVER (Ag) to be far ahead of that of Au...Both store value, when held in "your hand" without counterparty risk.. Soooooooo::::

Stack Silver as you can afford it - right now is best, as prices are getting away from the controlling banks now, with DB owning up to the fact that they all cooked the "posted price" all along... CHECK-6 and pack while you stack!
 

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Discussion Starter · #14 ·
More like a 90% revaluation of the US dollar. That's what happens when you borrow trillions, waste the money on nothing, and print comparable amounts of paper dollars.
Over the past few years I have been hearing experts on this subject saying that there would be multiple devaluations. Something like first a 30% haircut and then soon after another butch job haircut of around 40-50%. I have never heard of anything in total of adding up more than 70%.

I am more in the belief similar to yours of a 90%, to total collapse.
 

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Discussion Starter · #15 ·
There is a lot of chatter about fiat money, zero interest rates, debt, $10,000 an oz gold to make you consider or reconsider. I don't want to derail this thread but I wonder what steps to take to cover myself in either event. I have some ideas but that might deserve its own thread and not clutter up this one.

I think the ideas are sound and if there are then they may be of some help to others. If not then I need to know that too, possibly even more.
Katielyn, I encourage ideas on this tread on solutions to protect ourselves, after all this is a Survivalist Board. Let's hear them!
 

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Discussion Starter · #16 ·
An ounce of gold... is worth an ounce of gold. You can assign a value of x dollars (or Euro or whatever) but all that is is an assignment - there is no real correlation between the precious metals (other than what "they" say it is) and reality.
I wonder who, or how, it is determined how many ounces of silver it takes to buy an ounce of gold, or vise versa.

I know that it is called the ratio, but it definitely seems as though that ratio is way out of whack right now. Isn't it supposed to be something like 16 to 1 historically?
 

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Discussion Starter · #17 ·
I no longer worry about the price (as opposed to the value) of gold or silver.

A quick way to evaluate the value of silver/gold.

If you have or can find a quarter minted prior to 1964, the silver content is 0.1808 oz which translates according to today's spot price for silver to $2.63. So you could probably sell that quarter to a silver/gold dealer or coin shop for about $2 to $2.30 depending on how good you bargain and how honest the dealer is.

The price of a gallon of gas in our area is about $1.20. In 1960 I could buy a gallon of gas for about $0.20. So that quarter is still valued at a little more than a gallon of gas.

Which probably tells you more about the value of the paper dollars we use.
So Geezer, there is the proof that they have already devalued our dollar by 97-98% just through inflation and money printing. The hidden tax!
 

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I appreciate the offer

I believe most of us will agree that some type of correction is ahead. If I had a crystal ball I'd go all in one solution; but I don't. And we are all not able to do what we would like or that others can do.

So what I was thinking was sensible choices that works either way and for either group.

I was considering upgrading both of our vehicles with one being a pickup. Both of ours are '93s and getting long in the tooth. I usually just drive one until it gives up but I'm thinking now might be a good time to be proactive. And I was considering doing the same for the house. I'm basically looking at not having any major breakdowns for the next decade or at least that's the plan.

We don't have much space so I was considering a 400 sq. ft utility building for storage and wired for solar for a freezer.

We have a substantial emergency fund probably enough without borrowing but credit is cheap and having that money on hand to scotch on is a plus. I'll take 15-20% and invest in silver for three reasons. I don't believe it will get much cheaper, if gold goes up silver will follow and last, I heard hidden in the ACA is a provision that any amounts of $600 PM buys are reported to gov. Gov confiscated gold once they might do it again.

I feel if everything turns belly up and gold skyrockets silver only has to increase 5 or 6 times for enough to pay off the loan. If deflation hits instead cash on hand won't be a bad thing. And if everything remains the same I should be able to save by pushing repairs out a decade and by having space to store on sale supplies.

I know no plan is perfect but what I am after is being proactive without leaving myself a safety net.




Katielyn, I encourage ideas on this tread on solutions to protect ourselves, after all this is a Survivalist Board. Let's hear them!
 

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Gold is $

The value of the dollar changes. Gold and silver stays the same. Gold doesn't go up in value it goes up in price as a reaction to a devalued dollar. In other words. A certain quantity of gold is x dollars today, the dollar drops and the same amount of gold now costs more dollars. You don't speculate with PMs you only retain your buying power. Silver is the bargain right now. If the economy collapses, silver is the coin you want. Small denomination and at$15/ozt, it's on sale.
 
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