Purchasing Gold

Linton

WhiteHorse wrote: »

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At that point the government 'currency' has become worthless. You wouldn't swap gold for it. Gold is the currency, and it is used to buy just as before.

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Oh no. If I had the baked bean tins and you had the gold bars guess what the exchange rate would be!

lvader

Linton wrote: »

Oh no. If I had the baked bean tins and you had the gold bars guess what the exchange rate would be!

My gun takes both.

Venusflytrap

lvader wrote: »

My gun takes both.

The good ol' wild West - I like it! :rotfl:

Venusflytrap

Thanks all. Just discussing with my husband that, in addition to gold coins, we better stock up on canned food, organic seeds (for planting), water, toothpaste, cigarettes (for him!) and 'The Who' records.

Seriously, does anyone have a clue when the sirens are going to full sound?

sabretoothtigger

Canned food is not a bad idea so long as it can last a year or so that is a kind of investment. Its just that you probably dont need that much, its not that expensive and gold is super compact and durable so makes more sense

Less then a sovereign is not needed, use ideas like above for small change to stay liquid. secure future costs
A smaller coin has larger spread to its sale which makes it less worthwhile

Some people argue other metals will be used as a second tier to gold but that is more risky and bulky. I would argue we live in a very modern instant world, foreign currency of countries with great assets rather then debt will be used as a proxy for sub gold amounts. If you are going on holiday somewhere like Australia, that would be part of the secure future costs idea.

Buying currency you will never have a natural need for is far more risky. The idea of holding dollars as more liquid then gold shouldnt be done on a large scale.
You are relying on politics as USA trade is largely about their bond sales

Bonds have been in a bull market for 30 years. At the start they offered 15% and now they offer 1%.
Gold registers its largest rises as rates are rising, the reason being is that governments often lag the real inflation rate.
Making the interest rates in real terms for years ahead negative and so positive for gold holding

sirens are going to full sound?

I think it will be a tide change not a grand event

principa

Holding canned food is better than gold for the doomsday scenario. You can also eat it and replenish as you wait for Armageddon. You could be starving, under duress and may get significantly less for your gold than you expect. Canned food is also an effective inflation hedge that yields (although I have found myself cancelling that out by eating more beans).

In the (more likely) non-doomsday scenario holding gold as part of balanced portfolio is ok, but there's no need to hold physical directly in this case - physical-backed holdings in funds are more liquid.

IronWolf

Does anyone seriously think there is a chance of this scenario playing out?

How much food can you realistically stash anyway, maybe a few months worth? Gonna starve eventually unless you live in a rural area

Jegersmart

Venusflytrap wrote: »

Thanks all. Just discussing with my husband that, in addition to gold coins, we better stock up on canned food, organic seeds (for planting), water, toothpaste, cigarettes (for him!) and 'The Who' records.

Seriously, does anyone have a clue when the sirens are going to full sound?

I have worked in the financial and energy markets for 15 years, and I can see that the current system is not going to survive in its present form in the long term. I would however advise against taking extreme action to prepare for an unknown quantity in the future - if you feel the need take "baby steps" so that you do not find yourself on the wrong side and "all in" in poker terms. What happens if the current system does survive and in 5 years time gold is only worth $300 per ounce? What happens in the longer term if gold is not the currency you think it will be and in fact wood, water and land is....? You can't eat gold or build anything useful out of it - it is a shiny metal that has been in demand for that reason mainly, but it has been used as a currency in the past....it doesn't mean it will in the future.

So what I am saying is that taking an extreme position in one way or the other increases your risk exponentially. I would think about and educate yourself from a variety of sources and if you still think you want to go down the armageddon route then do so gradually.

All imho ofc - good luck!

J

principa

I think you would quickly relocate to a rural area..

principa

Jegersmart wrote: »

So what I am saying is that taking an extreme position in one way or the other increases your risk exponentially. I would think about and educate yourself from a variety of sources and if you still think you want to go down the armageddon route then do so gradually.

All imho ofc - good luck!

J

Completely agree. I wince when my friends tell me they have bought gold on the basis of some silver haired American on Youtube talking about the impending collapse of the world.

Maintain a balanced portfolio of assets. Periodic rebalance to deflate bubbles. Boring, but there's plenty of excitement to be had outside of the finance industry.