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Where the Elite meet
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Discussion Starter #1
Like many here I've been a gold bug for years, and have kept the lions share of my savings in gold and silver, and at current prices I've done quite well for myself. But when I was looking at my reserves the other day I got to thinking, just who will want this shiny metal when the SHTF?

I know that gold has always had value, but you can't eat it, you can't make a tool with it, you can't burn it for heat, and you can't use it for fuel. What good will it be when people are killing each other for food? At that point it'll seem as worthless as paper money because there isn't a damn thing you can do with it, and I'd guess that the jewelery market would be damn flat.

So, I've been thinking of converting to food and fuel, which will actually be worth something when the SHTF. Any one else thought about this? Got any thoughts on what will happen to the value of gold when it happens?
 

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Live Secret, Live Happy
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During the last great depression, many farmers were forced to sell their land at a sheriff's sale when they could not pay their debts, taxes, or mortgages. Folks who had secured their wealth in cash (since US citizens were forced to sell their gold in 1934) were then able to buy up good productive farm land at pennies on the dollar. Some folks in the southern plains paid less than $10/ac in the 1930s for land that cost $100/ac just four years earlier. Many non citizens also bought in and many families were able to secure their entire families future by buying up distressed farms.

Now I am certain that the same thing can be done in the urban areas as well. Buying up distressed buisness, homes, stores, resturants, and factories. Just make sure you know the buisness and know the market going forward.

You are correct thinking that gold wont help during the crisis, but it will preserve your wealth through the crisis and allow you to start fresh when rebuilding begins. I refuse to believe that America will not be rebuilt. The only question is, will I participate.
 

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Wide awake
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Brother, this topic has been discussed ad nauseum here. The phrase you mentioned in the OP, "you can't eat gold" has become cliche' around here. You may get a few responses, but I would recommend doing a search on this topic. Most of the responses you do get will be largely ignorant and baseless - originating from those who haven't been involved in the long-running debate around here. Those who have the most insight are likely weary of posting the same arguments over and over. You won't get much from them with a fresh start and unoriginal question like this (no offense intended).

I'll leave you with one concept. Do a bit of digging on on Stalinist Russia and the interesting dynamic associated with gold. During the worst of economic times, and when private ownership of gold was punishable by death, the [black] market value of gold doubled.

Gold has international value. The argument that gold will be worthless in the event of a SHTF scenario incorrectly assigns gold a local value. That simply isn't a logical analysis. There will always be wealthy elite, both domestically and abroad, and there will always be risk in fiats that can only be offset by tangibles.

Furthermore, gold is not limited exclusively to the intrinsic value that many claim for it. Gold is unique among metals due to its ductile and conductive properties and tensile strength, rendering it valuable in the medical technology, computer hardware, and other various industries. You may not be able to eat it, but in addition to its value as a store of wealth, there will be an industrial demand for it until another metal takes its place.

One last point: Study the dynamic associated with metals during the Great Depression with a wary eye. It wasn't until a few years after the market collapse that the dollar was partially de-coupled from gold. The significance? Gold had no unique value that it didn't share with the dollar. That is no longer the case in any nation on earth. What gold did during the first few years of the Great Depression is largely incongruent and not directly applicable to the contemporary market.
 

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Where the Elite meet
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Discussion Starter #4
Industrial demand? Africa has that covered. Armies using slave labor will always beat out the guy on the street. Not to mention that the limited production that the US has will fully stop when the SHTF. Who will be the buyers?

As for Stalinist Russia, there was still a functioning society, and people were hedging against an unstable currency and an unknown future of a rather stable country. Do you really think that there will be strong central leadership in the US when the SHTF? Do you really think that you'll be able to go to the market for potatoes like in Stalinist Russia?

As for the wealthy elite, what will their wealth be based on? Currently it's based on investments and cash. Would you want either of those when the SHTF?

As it all gets closer I'm really at a loss of what to do with my metals, and it's frightening.
 

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to me it really depends on what type and at what lvl the SHTF. gold will be useful as long as the world society stays together. the only time it will become totally useless is if a world changeing event happens that totally charges life as we know it world wide (mad max). then it will have no value.otherwise if they are still useing money for trade, gold will have a value. but like the old saying ,"dont put all your eggs in one basket". also invest in a stockpile of food ,items,and a means to protect yourself in times of trouble.
 

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the S has aready hit TF, it's just catching up to some people and will catch up to the last millions in a few yrs, the only things that will be of any good for yrs will be a combination of edible food ,burnable fuel and liveable shelter.
The gold and silver will be needed to keep from being on the bottom of the food chain when the world gets back on track. the people with the wealth,weather it's land, silver or gold will be the winners and leaders.
 

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Where the Elite meet
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Discussion Starter #7
the S has aready hit TF, it's just catching up to some people and will catch up to the last millions in a few yrs, the only things that will be of any good for yrs will be a combination of edible food ,burnable fuel and liveable shelter.
The gold and silver will be needed to keep from being on the bottom of the food chain when the world gets back on track. the people with the wealth,weather it's land, silver or gold will be the winners and leaders.
When the world gets back on track? I'm afraid I'll be long dead by then.
 

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Really?
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........ just who will want this shiny metal when the SHTF? I know that gold has always had value, but you can't eat it, you can't make a tool with it, you can't burn it for heat, and you can't use it for fuel. What good will it be when people are killing each other for food? At that point it'll seem as worthless as paper money because there isn't a damn thing you can do with it, and I'd guess that the jewelery market would be damn flat......
There's stories about that the Jews would keep a single large diamond( in their bodies), called the family stone, for after the Holocaust. Many used it to start anew. IMO,as long as there are people, Gold will have value.... folks will still accept it as currency( mostly, at market value). You'll be able to buy anything you need with it. My thought would be that the biggest problem is getting the Gold in small enough increments so you're not giving it all away. IF one ounce is worth $1000 and the barterer wants $100 for his item, how will you give them $100 worth of Gold? I'd definitely use the Silver first. Btw, jewelry makers won't stop making jewelry, that's what they do. Course, they'll probably be spending all their time melting down jewelry for the Gold.:thumb:
 

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Rogue
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So, I've been thinking of converting to food and fuel, which will actually be worth something when the SHTF. Any one else thought about this? Got any thoughts on what will happen to the value of gold when it happens?
I can't say for sure what value gold and silver will have. But I can say for sure that food and fuel will always be worth something.

My guess is that gold and silver will have value only in that it is a universal item. For example lets say I have bread and milk and you have vegetable oil. I want your vegetable oil but you don't need my bread and eggs. Now I am sure I could trade someone for something you would want. But that little problem is the reason gold and silver were coined into currency in the first place.

I doubt seriously that would change but you never can tell. On the flip side with enough trading partners food and fuel is a sure thing.

I think the key here is to diversify just like any other investment.
 

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Maximus
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12,320 Posts
So, I've been thinking of converting to food and fuel, which will actually be worth something when the SHTF. Any one else thought about this? Got any thoughts on what will happen to the value of gold when it happens?
The main consensus here is that Gold is NOT a substitute for having food and fuel. Get what you NEED FIRST then if you have extra and want to, get gold. I don't think you will hear anyone say "get only gold and forget the rest".

Industrial demand? Africa has that covered. Armies using slave labor will always beat out the guy on the street. Not to mention that the limited production that the US has will fully stop when the SHTF. Who will be the buyers?
From this point of view, if someone is still taking the time to produce it, it means that there are still people who want it. That means it has value. Maybe not to the person starving in their BOL, but there WILL BE someone here that wants it and is going overseas or someplace.

No one is saying you will get "market value" for your trade. But you will be able to get something. Not everyone will be starving shtf. And for those that have enough food/ammo/water they will want something else.

And what if it isnt total end of the word? Just a local shtf like Katrina or something. Then your gold will have A LOT of value.
As it all gets closer I'm really at a loss of what to do with my metals, and it's frightening.
Only 2 things you can do with it honestly. Keep it or sell it.

I don't think it is that hard. If you don't want it, dont see value in it, then sell it now. You can get a grand an ounce right now of 24k or bullion. If you have 14k then you can probably get 600-800 an ounce. Sell it and get stuff that you need/want.
 

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Really?
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One thing for sure, G&S does NOT go bad.......depending on the SHTF, food, water, fuel and supplies can go bad or be destroyed....IMO, it's good to have G&S as back up. Just like any other supply, it's better to have it and not need it, than to need it and not have it. IMO, in any SHTF, there will be those who have more and won't need to barter for supplies, but will always take G&S.
 

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Maximus
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Brother, this topic has been discussed ad nauseum here. The phrase you mentioned in the OP, "you can't eat gold" has become cliche' around here. You may get a few responses, but I would recommend doing a search on this topic. .... Those who have the most insight are likely weary of posting the same arguments over and over. You won't get much from them with a fresh start and unoriginal question like this (no offense intended).
I think I disagree with this. I'd rather see a new thread than to have one revived from the dead from 7 months ago. Many of the old contributers from those old threads no longer follow it or may not even be here. With the 300 old gold threads, which one does the OP respond to? The one with the closest to his Main Title? or the threads that have been hijacked but have the most insight?

The subject may be "done to death" for those that been here a while, but for many of the new people here, they are legit concerns. And there are plenty of new people coming in all the time.
 

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... --- ...
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I,on the other hand, agree completely with Sapper. This subject HAS been covered,ad nauseum. Several of us here have repeatedly battled the same fallacious arguments,over and over again. Sapper's reasoning and historical knowledge, as usual, make for yet another highly informative post.:thumb:
Also, I am constantly perplexed to see that so many here can only envision a complete,total "Mad Max" collapse of government,industry,etc rather than the slow,downward economic spiral and an emerging global,super-state that is much more likely.
 

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Board Supporter
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I think that as long as there is a government in the United States, there are going to be property taxes. If you have a ton of supplies and your BOL all stocked up and ready, and then during the crisis, can't pay the property taxes on it, you are apt to loose a lot. I see gold as a way to insure that you have enough capital to pay those taxes and maintain the ownership of your property.
 

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Where the Elite meet
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Discussion Starter #16
I think that as long as there is a government in the United States, there are going to be property taxes. If you have a ton of supplies and your BOL all stocked up and ready, and then during the crisis, can't pay the property taxes on it, you are apt to loose a lot. I see gold as a way to insure that you have enough capital to pay those taxes and maintain the ownership of your property.
Good point, but when things take a turn for the worse then what? It's really a question without an answer as far as I can reckon, and it's really been playing on my mind as of late.
 

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Really?
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I,on the other hand, agree completely with Sapper. This subject HAS been covered,ad nauseum. Several of us here have repeatedly battled the same fallacious arguments,over and over again. Sapper's reasoning and historical knowledge, as usual, make for yet another highly informative post.:thumb:
Also, I am constantly perplexed to see that so many here can only envision a complete,total "Mad Max" collapse of government,industry,etc rather than the slow,downward economic spiral and an emerging global,super-state that is much more likely.
He says
Sapper6 said:
Those who have the most insight are likely weary of posting...
That's informative? Who determines insight? Who determines the most insight? Sorry, but that sounds a little elitist to me. Nobody can have the"most insight" (read that, predict) what the SHTF's gonna be......a bolt of lightning hits my house and it burns to the ground....that's MY SHTF, noone else's......IN'04 we got a direct hit by Hurricane Charlie....we survived, but 2 doors down a big tree fell on their house and destroyed it, that's their SHTF, not ours........in Katrina, whole houses were flooded and swept away, others were undamged, That was their SHTF.......in all those, a fireproof safe with $10K of Gold will be all that will survive and all that's needed.
 

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Registered
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During the last great depression, many farmers were forced to sell their land at a sheriff's sale when they could not pay their debts, taxes, or mortgages. Folks who had secured their wealth in cash (since US citizens were forced to sell their gold in 1934) were then able to buy up good productive farm land at pennies on the dollar. Some folks in the southern plains paid less than $10/ac in the 1930s for land that cost $100/ac just four years earlier. Many non citizens also bought in and many families were able to secure their entire families future by buying up distressed farms.

Now I am certain that the same thing can be done in the urban areas as well. Buying up distressed buisness, homes, stores, resturants, and factories. Just make sure you know the buisness and know the market going forward.

You are correct thinking that gold wont help during the crisis, but it will preserve your wealth through the crisis and allow you to start fresh when rebuilding begins. I refuse to believe that America will not be rebuilt. The only question is, will I participate.
They did not have bankruptcy in the Great Depression.
 

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Permaculturist
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1,032 Posts
IF one ounce is worth $1000 and the barterer wants $100 for his item, how will you give them $100 worth of Gold?
In Zimbabwe today, they pan for gold & trade in grams for meals. Incidentally, after an economic collapse, a barterer would not be thinking in terms of Federal Reserve Note dollars. A barterer would be interested in trading goods and services.

The concept that gold cannot be traded for food is erroneous. Watch this 7 minute video, "everything is gold gold, no zimbabwean dollars"

http://www.blinkx.com/watch-video/zimbabwe-gold-for-bread/7OIMe5lBK4ze-2YVp87l9Q
 

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Organ Donor
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>Like many here I've been a gold bug for years, and have kept the lions share of my savings in gold and silver, and at current prices I've done quite well for myself.


Have you?

Just because gold is a $1000 an once doe not mean that is what you get if you sell it.


There was an article in the local paper a couple of months ago written by an local attorney. He had to settle the estate of his brother.

Some convinced his brother the end was coming and he should convert all his wealth into gold so he did a few years ago. Something like $150k.

In that time gold prices went up 35-40% so you would think he made a smart move but the problem was that when you sell gold you get a lot less than market price.

This investment that grow 35-40% on paper ended up losing 15% when it came time to cash in.

Yes I know gold is hedge against hyper inflation but I have been hearing about that since the 70's. I just don't think the odds are high enough that that will happen for me to devote my prepping resource towards it.

McLOVIN
 
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