[MIL-DOT]

I agree with many here that our economy and the dollar can't take much more of this, and something is going to snap. I've been steadily accumulating Silver eagles and a few gold eagles over the past couple months, as I'd rather have a couple grand tied up in PM's rather than sitting in a closed bank someday.
But I'm wondering exactly how it works. Say the dollar spirals downward, inflation goes through the roof, buisnesses close, silver is at $75 an ounce, how difficult will it be to liquidate back into cash again for food,gas,rum,etc?
(you see where my priorities are ! : ) Exactly who is going to be buying all this metal that will be bubbling to the surface? I keep hearing folks say we'll "barter" with it, but if there's a problem selling it, who's going to take it in exchange for vital stuff like beans and bullets ?
Clearly, I'm lacking a little in knowledge here, and I'm not saying I think PM's are a waste of time, or obviously I wouldn't be buying any, but I'm just wondering how this is likely to go down in the event of a depression.

 

[doktorziplok]

my thinking is that there will be foreign interests who want your metals. i hold mine as a hedge on hyperinflation.

 

[Cryptkeeper]

if you go to the black market which several should pop up. most likely you will get the worst deal there they will only give you the value of that of some1 who brings in a 14k gold ring and your coin is .999 pure doesnt matter they arnt pros to know if its real. and dont even think of jewels, they will not be worth much. to cash it in i would go to a coin dealer or a pawn shop you would get the best deal there. who knows banks may begin takeing them. i would get more silver than gold just incase they make owning gold illegal like they did in the past.back then you could go to the pen for 10 yrs if cought with any gold coins/bullion, jewelry was ok. also silver is less to attrack attention and is easier for the merchant to make change for, it would really be hard for him to make change for a 10lb bag of beans if you try to pay him with a gold coin

 

[Cryptkeeper]

here is what they did to argentina a couple months ago. i hope it doesnt happen here

http://online.wsj.com/article/SB122471757680560465.html?mod=googlenews_wsj

and this is what our congress is up to

http://www.rightsidenews.com/200811...-target-401k-and-ira-retirement-accounts.html

 

[Sharpdogs]

here is what they did to argentina a couple months ago. i hope it doesnt happen here

http://online.wsj.com/article/SB122471757680560465.html?mod=googlenews_wsj

and this is what our congress is up to

http://www.rightsidenews.com/200811...-target-401k-and-ira-retirement-accounts.html

Reading that just ruined my day. Typical government, hurt those who worked hard and saved.

 

[TAKEZO]

Well clearly it won't be convertable at you local Walmart.

But we're looking at more than devaluation.
We're looking perhaps at hyperinflation and total collapse of the dollar.
Then a new money system will be put into place, with the old dollars cashed in at 5 or 10 cents on the old one (maybe less).

But though this turbulent time, gold and silver will continue to buy things.
A parrallel economy will emerge that will accept metal.
It may be illegal, but it will be there.
Also this is the only truly safe way to protect you money should you have some to protect.

Not all your cash should be converted into metal.
Just what you want to preserve. 1/3 or even 1/2 would be good.
And even if it doesn't go to ****--you still got it there.
A 100% conversion is not a luxury most people can affoard.

But converting it out is a bit tricky--they (the gov) will be watching and will make you pax taxes on this conversion, or worse. That's why you do it in small transaction here and there.

Personally I believe this county is going to go through utter chaos, then break apart as did the Soviet Union. This seems inevitable. All these bailouts ensure only one thing: that irrevocable harm has been done to our money system--and it will not come back. To believe the economy will recover fully is hello-kitty thought.

What is currently happening in Iceland is a preview of what is to come here. And the American public is not as tamed or disarmed as the Icelanders (who are openly rioting). The big Iceland ripoff will happen here and soon.

If you live in a rural area--then batering with gold and silver will go a long ways. If you're stuck in the city, it will be much harder because a spy network, and gov eyes will be controlling everything (for a while that is)... and they will not allow you to buy and sell out of the system.

But if it all does go to hell.... what would a grocer like to have for a cart of goods? A handful of paper? Or a couple of silver ounces? Paper or silver?

This is not a hard question.

And oh.... if you don't have any, you can't get it now anyways. Supplies have dried up. Foreign gov's are buying it all up. The super rich too. In bullion bars which seem to be the only thing available. These people and entities are converting out of dollars while it stil has some value. They see the writing on the wall. They're converting dollars into land, factories, commercial buildings, etc. Anything tangible. They're scooping the pot.



T

 

[Kregener]

You will not 'convert' your PM's BACK into anything.

You will SPEND them...like the REAL money they are.

 

[Highlander]

Good God Cryptkeeper. Reading this stuff just makes my blood boil.

 

[yaya]

use those dollars now to get gold.in 2009 when the dollar falls peso-like over 90% in value and gold rises to over $2000 at the very minimum,you will be richer than a bill gates with all his dollar accounts.conditions are worse than all the latin american countries due to having more debt than the whole world combined.

 

[FXjohn]

use those dollars now to get gold.in 2009 when the dollar falls peso-like over 90% in value and gold rises to over $2000 at the very minimum,you will be richer than a bill gates with all his dollar accounts.conditions are worse than all the latin american countries due to having more debt than the whole world combined.

I love how people pull these predictions out of their butt and post like they can predict the future down to the decimal place. :upsidedown:

 

[yaya]

then all the experts at safehaven and howestreet and financialsense are wrong but they sure aint.

 

[TAKEZO]

You will not 'convert' your PM's BACK into anything.

You will SPEND them...like the REAL money they are.

This is what I meant--convert into goods, services, etc.

And if you do have to live in a slave system (North American Union), convert a small, small part of this into the cash of the day--in order to live and stay alive under the wire.

T

 

[Cryptkeeper]

i got the last of the silver in my town 4 months ago and all they had was $45 worth of 90% havent seen any since. alot of the pawn shops are holding on to what they got they know what is comming

 

[Maverick88]

I love how people pull these predictions out of their butt and post like they can predict the future down to the decimal place. :upsidedown:

What decimal place, i see a whole number. Where do you get your information, it seem like the same place you are accusing the poster of getting his.

 

[aramchek]

Could be issues

I've worried that the price of precious metals has been speculated too high (pushed up by the same nuttiness that drove real estate WAY up). In the 1800's, I think weighing scales were fairly common and probably more general stores could judge real/fake gold and silver. So the crux of the problem today is that you won't be going to your local Big Box store and paying with gold. You'll either have to exchange it with a bank, and play by the bank's rules (which is probably what you're trying to avoid), or else you'll barter it.

So I'm thinking the general barter economy is preferable to silver/gold. May be better to accumulate things that people need: seed, ammo, basic necessities, etc. Takes up more space, that's for certain, and you need to be aware of any expiration dates, etc. But a barter economy isn't prone to the sort of wild speculation that cash money, gold or silver are. That's my theory, anyway.

 

[Kregener]

Gold has not changed in value, only the FRN's it takes to buy an ounce of it has.

In 1888, a man could walk into a Haberdasher and purchase a tailored wool suit with a $20 gold eagle.

In 2008, a man could walk into a Haberdasher and purchase a tailored wool suit with a $20 gold eagle.

There is no...'speculation'...here, gold has always had its value, throughout the 5,000 year history of human exchange.

Keynesian economics and fiat monopoly money cannot change this fact.

 

[Dock]

I agree with many here that our economy and the dollar can't take much more of this, and something is going to snap. I've been steadily accumulating Silver eagles and a few gold eagles over the past couple months, as I'd rather have a couple grand tied up in PM's rather than sitting in a closed bank someday.
But I'm wondering exactly how it works. Say the dollar spirals downward, inflation goes through the roof, buisnesses close, silver is at $75 an ounce, how difficult will it be to liquidate back into cash again for food,gas,rum,etc?
(you see where my priorities are ! : ) Exactly who is going to be buying all this metal that will be bubbling to the surface? I keep hearing folks say we'll "barter" with it, but if there's a problem selling it, who's going to take it in exchange for vital stuff like beans and bullets ?
Clearly, I'm lacking a little in knowledge here, and I'm not saying I think PM's are a waste of time, or obviously I wouldn't be buying any, but I'm just wondering how this is likely to go down in the event of a depression.

Precious metals have a intrinsic value and therefore would take up the role of unofficial currency. The dollar is fiat money - the only value it has is the value we "give it." With that being said, I wouldn't keep gold/silver on hand PERSONALLY though I see the argument for doing so. I can envision the government confiscating precious metals in the future if SHTF. It has happened in countries who have had their currency sink into the sea.

 

[pete7469]

I love how people pull these predictions out of their butt and post like they can predict the future down to the decimal place. :upsidedown:

I can't believe I actually agree with you on something, all this doom and apocolyptic terror does nothing for me. I realize we're in for a rough ride, and God knows how long it will take to right itself. However, the money brokers and powers that be will not propsper with the entire country broke, I doubt they want another depression, they gain far more with a strong economy. I've got my money in guns and ammo right now, and I'll buy silver now too. However this idea that the "new currency" will be exchanged for pennies on the dollar is absurd. They didn't bankrupt anyone with the Euro. We're still a strong country, we still have lots of wealth, smart people and lots of hard workers. Sheesh...

 

[MIL-DOT]

There's a difference. Europe tends to embrace a "new world order" concept,
( where did Obama take his "I'm a citizen of the world" speech ? ) Where as the U.S. tends to cling to several archaic views that don't coincide with the globalist agenda,( damn that pesky bill of rights) and therefore needs to be "lead to" acceptance in a less subtle manner.

 

[Cryptkeeper]

I've worried that the price of precious metals has been speculated too high (pushed up by the same nuttiness that drove real estate WAY up). In the 1800's, I think weighing scales were fairly common and probably more general stores could judge real/fake gold and silver. So the crux of the problem today is that you won't be going to your local Big Box store and paying with gold. You'll either have to exchange it with a bank, and play by the bank's rules (which is probably what you're trying to avoid), or else you'll barter it.

So I'm thinking the general barter economy is preferable to silver/gold. May be better to accumulate things that people need: seed, ammo, basic necessities, etc. Takes up more space, that's for certain, and you need to be aware of any expiration dates, etc. But a barter economy isn't prone to the sort of wild speculation that cash money, gold or silver are. That's my theory, anyway.

actually i think its more the opposite. go out and try and buy gold and silver it is really hard to find it. to me it means that the price is being held down. once these bailouts really hit the economy, our dollar value will drop which will make the price of silver/gold skyrocket up. i think silver/gold will be best when the country is on the road to recovery.

i do hope im wrong.