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A lot of the hype and security that people think they will have in buying and stocking precious metals is going to be the source of an awful lot of disappointment and anger in a total collapse.

Sure, it's worth more than it ever has been and so long as the economy doesn't completely collapse and you can trade it, precious metals are a good investment. However, my father in law talks about people in Berlin after WWII being willing to trade jewelry for bread. A lot of GIs made seriously profits trading their rations for ingots.

Anyone lately try to buy anything tangible with gold? Very few people can tell the difference between a gold-nickel alloy, 10K, 18K and 24K or the difference between silver and pewter. If you can't trade with it now, you won't be able to trade with it later. The only people willing to trade for it ever will be those with assay equipment, the knowledge of how to use it, and the resources they are willing to part with it in order to buy it from you.

What counts in a collapse is what people can identify and use. You might be able to buy a half ton of wheat with an oz of gold now, but it would be quite different during a meltdown.
 

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Prepared Firebird
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And you know all this........how, Karnak??? What is your source for "knowing" that there will be an absolute total collapse???

Please explain to all of us on this forum just how it is that people cannot "identify" what pre-1965 silver US coins are. I'm sure everyone is breathlessly awaiting your further words of wisdom. LOL
 

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Prepper in Training
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I don't claim to know what will happen, but that Ferfal guy who wrote a book on Argentina's economic collapse said if he had to do it all over again, he'd stockpile wedding rings. Because they are easier to trade, and people are less likely to think you have riches, then if you hand out gold coins.
 

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Maximus
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A lot of the hype and security that people think they will have in buying and stocking precious metals is going to be the source of an awful lot of disappointment and anger in a total collapse.

Sure, it's worth more than it ever has been and so long as the economy doesn't completely collapse and you can trade it, precious metals are a good investment. However, my father in law talks about people in Berlin after WWII being willing to trade jewelry for bread. A lot of GIs made seriously profits trading their rations for ingots.

Anyone lately try to buy anything tangible with gold? Very few people can tell the difference between a gold-nickel alloy, 10K, 18K and 24K or the difference between silver and pewter. If you can't trade with it now, you won't be able to trade with it later. The only people willing to trade for it ever will be those with assay equipment, the knowledge of how to use it, and the resources they are willing to part with it in order to buy it from you.

What counts in a collapse is what people can identify and use. You might be able to buy a half ton of wheat with an oz of gold now, but it would be quite different during a meltdown.
Short-sighted thinking there. But don't worry it is common. Please read this post and just consider what is said....

What you and most others with that position fail to prepare for is AFTER a possible economic collapse. This is what Gold and metals are for. Do you really think that after a total economic collapse that the entire world will just keel over and die? What would lead you to that assumption besides your own wishes and desires?

People in power want to stay in power. People not in power will WANT to be in power. What is more than likely going to happen is that the world, nations, states, local governments are going to jockey for control again. The first nation to attain stability again will have a serious advantage over the nation and the world. And stability will be gained through gold and other metals... not spam and bullets.

This is why your gold is going to be helpful. Take a look at all the examples, including the one above where the GI's made out good for trading bread.

  • Germany after the war: completely economically devastated. Gold has value again.
  • USSR economic collapse: Gold regain value again.
  • Japan: Economic collapse: Gold regain value again.
  • Zimbabwe: Hyper inflation: Gold is used to get food.

This is only in recent history, wait until you get into the eras before this...

See the pattern now? You prepare for the party, but not the cleanup. It is like people who are spending $50,000 for their wedding day and not mapping out the other 60 years of marriage afterwards.

Wake up from the fantasy world. And hey, if the universe shoots out a world-ending scenario and only 1% of people are still living in the world or mutant zombie outbreak... ohh well. Dump the gold. At that point who cares. There are a lot of other prep items that I may never use also.
 

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The beauty of interweb forums is that anybody can post their opinion. Even if totally under-informed or just plain wrong.

PM's will always have a place in commerce and trade. Much more so than fiat currency like the Euro and Dollar that will go the way of the Mark when the economy realizes the "currency" is backed by...nothing.

Barter is difficult. If I want to trade my skills as a medic for beans and wheat, that's cool. But what if the beans and wheat guy isn't sick ? There will be a need for a common, worthwhile currency. Ancients did it with beads, seashells, etc. It is a means of providing a common denominator to allow for exchange of goods and services that has tangible value beyond Obama's "word".

All currencies start out as units of some kind of precious commodity. The dollar, when it was gold-backed, could be traded for a like amount of gold from the treasury. The crime-of-the-century was getting the US Dollar OFF the gold standard. It was, anmd still is, fiat, or fake, currency. Backed only by a promise from the .gov that it is worthwhile.

WWI germany saw huge amounts of inflation as they printed money to pay off their war debt. It devalued their currency to make it meaningless.

wedding rings and jewelry will be hard to pawn off as real or worthwhile. rounds and junk silver will be easily recognized and eagerly traded for. Personally, I would keep my denominations low as to not attract to much attention.
 

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Never Give up
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So how many tons of rice wheat and other Long Term foods do I put away? Have them already and still have lots more. But I still have lots of Fiat currency that I have no faith in what do I do? Invest in Enron? No ill stick where I always have like my ancestors before me. Gold it never goes out of style for long.
 

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its my opinion that gold and silver will only serve a purpose in a short term shtf scenario. why you ask - because if their is truly a life altering long term event it is likely the authorities who take over will try to eliminate your ability to trade and barter to further reestablish a fiat currency upon which stabilization can occur.

and keep in mind - gold and silver only have value in a shtf situation if i determine i want to trade for them. they achieve value from novelty and industrial usage of which their will be very little. you will find many who will accept them for barter but i believe that will be short lived when one finds himself hungry.
 

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And you know all this........how, Karnak??? What is your source for "knowing" that there will be an absolute total collapse???

Please explain to all of us on this forum just how it is that people cannot "identify" what pre-1965 silver US coins are. I'm sure everyone is breathlessly awaiting your further words of wisdom. LOL
Which one is fake?



Pic borrowed from member "sendkeys".
 

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its my opinion that gold and silver will only serve a purpose in a short term shtf scenario. why you ask - because if their is truly a life altering long term event it is likely the authorities who take over will try to eliminate your ability to trade and barter to further reestablish a fiat currency upon which stabilization can occur.

and keep in mind - gold and silver only have value in a shtf situation if i determine i want to trade for them. they achieve value from novelty and industrial usage of which their will be very little. you will find many who will accept them for barter but i believe that will be short lived when one finds himself hungry.
As you said, it's impossible to know the future, but based on world history as recent as the collapse of Venuzuela's economy in 2001 it's a pretty safe bet to say you're prediction is wrong. To say that PMs only achieve value as a novelty and industrial usage is to ignore 6,000 years of world history.

It's also ignoring history to say that there will not be a black market after some sort of government has been established along with a new fiat currency. Regardless of what system of government has been in existence, there has always been a supply when there has been a demand, whether the item(s) have been legal or not or whether the transactions themselves were legal.

World history is filled with SHTF scenarios and PMs have been used for trade in every recorded instance.
 

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Cautious Optimist
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Feel free to send me all your worthless gold and silver ... :)

Actually, metals are not so much for use in a time of crisis. They are, instead, a mechanism for preservation of wealth on the "other side" of crisis, when currency stabilizes.

Indeed, many smart investors today are not just investing in precious metals, they are doing so overseas ... and storing them overseas ... far from the taxation arm of a rabid, ravenous government. Someday, when freedom is rediscovered, they will be able to bring the wealth back into the country and re-establish the economy.

I look at my silver as insurance - nothing more.
 

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The original poster has a very valid point. Nobody here in the U.S. is set up to do business in gold other than a small number of companies that buy and sell gold. Try walking into a Walmart and buying something with a gold coin. They would have no idea how to value it or what to do with it and would likely turn you down.

The point being that eventually one could do business in gold but certainly not immediately. If the dollar fell and gold became used in trade, it would take time for that to happen. It would take time for it to establish a value (1 ounce will buy you x number of....)

Yes, you could sell the gold immediately to another country in exchange for their currency which would presumably have value.

How much value gold would have is the real question.
 

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Feel free to send me all your worthless gold and silver ... :)

Actually, metals are not so much for use in a time of crisis. They are, instead, a mechanism for preservation of wealth on the "other side" of crisis, when currency stabilizes.

Indeed, many smart investors today are not just investing in precious metals, they are doing so overseas ... and storing them overseas ... far from the taxation arm of a rabid, ravenous government. Someday, when freedom is rediscovered, they will be able to bring the wealth back into the country and re-establish the economy.

I look at my silver as insurance - nothing more.

Smart man.
 

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Capability, not scenarios
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<sigh>

There are two reasons to own PMs, *after* you have prepped.

The first is as protection of financial assets which will be valuable if and when there is a recovery after a collapse.

The second is as a medium of exchange which bridges the gap w/r/t barter. If I need "x" and want to barter "y" for that "x", but you don't need "y", gold/silver is a medium by which exchange can happen.

It's what we do with money now.


Berlin is *not* a good example to use. Such people were not prepped, and their circumstances differ greatly from what we face. I have something approximating a year's worth of food stored. I do not need to trade jewelry for bread. I'll make my own.

Further, one beauty of PMs is that they are very portable. I have well over a ton of food stored (900# wheat berries to start), and if I'm forced to run, I cannot take that food with me. PMs I can take with me.

Everyone must make their own judgment as to whether PMs are a good idea. I believe that for different people in different circumstances, more or less PMs are a good idea. If I had a nice homestead farm, with great sustainability, PMs would be somewhat less important to me. In an urban environment, no BOL--they'd have much more interest to me.

So it depends. While I may be disappointed in what role PMs play post-SHTF, I am trying to prep for as many situations as I can--and there are many in which PMs will be valuable and important.
 
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