Gold is pointless

System

I used to dig Inthe garden to meet my uncles in Australia!

TrustyOven

EdGasket wrote: »

Idiotic comment. Go read some history and learn.

Its hardly worth replying but I will as you seem genuinely dumb. You'd exchange the gold for a lot of currency if that was what was needed. More likely though you'd need to trade gold for food in extreme times as cash would be worthless.

I'll skip your pointless insult.
Since you didn't provide your learning material, I'm just as likely to come across and read anti-gold material.

So, won't gold go up in price due to demand, but so will prices of things you need. So.... what's the gain?

What if hyperinflation causes problems in the gold / gold-securities industry so that it's not possible to use the gold to exchange it? What if governments impose a limit on the amount of gold that can be exchanged?
Will extreme use of gold in this hypothetical situation speed up hyperinflation?

Keep_pedalling

EdGasket wrote: »

Rubbish. Fiat currencies come and go and the governments that back them for a while fail. Gold wins out every time and has been a reasonable inflation hedge since the beginnings of time. Just wait until you experience some hyperinflation and see what happens to your 'superior cash' !

So post apocalypse, you have a cellar with lots of gold in it and I have a cellar full of food. Do I sell you some of my precious food for some of your gold, or do I refuse, wait for you to starve, then take all the gold :j

grumbler

TrustyOven wrote: »

So, won't gold go up in price due to demand, but so will prices of things you need. So.... what's the gain?

By selling gold (or part of it) you'll get more money than you paid for it originally.

What if governments impose a limit on the amount of gold that can be exchanged?

This did happen in the past, up to confiscating it.

Will extreme use of gold in this hypothetical situation speed up hyperinflation?

You don't care as you have gold, not banknotes.

economic

gold is an extreme tail event hedge. its an insurance. so i wouldnt personally put a lot of my wealth in it bu tits nice to have a bit as insurance.

however the ultimate hedge is food. in a mad max scenario not even gold survives. it will be back to absolute basics and thats food and shelter.

gold is somewhere in between current system and mad max system where food is the only thing valuable.

and no gold is not a hedge against inflation. thats just stupid. gold is just a hedge against government/economic/financial collapse but not a hedge for full blown collapse.

Apodemus

The ultimate hedge is surely practical survival skill and knowledge. In a mad max, civilisation-collapsing event, I would not want to bet on being able to defend either a cellar full of gold or a cellar full of food.

If the NS&I collapses and the Premium bonds are gone, it is time to kiss it all goodbye and move on without a backward glance!

JohnRo

economic wrote: »

gold is somewhere in between current system and mad max system where food is the only thing valuable.

I thought that was BREXIT, nationalist fantasies aside.

Malthusian

Apodemus wrote: »

The ultimate hedge is surely practical survival skill and knowledge. In a mad max, civilisation-collapsing event, I would not want to bet on being able to defend either a cellar full of gold or a cellar full of food.

Me neither. If any of these survivalists were serious they'd be spending their money on krav maga lessons, not gold. But buying gold doesn't give you bruises or make you sweat.

If it was mere hyperinflation they were worried about, not nuclear winter, they would hold a globally diversified portfolio of stocks and shares which would hold its value if the UK did a Weimar Republic. (Hyperinflationary episodes are always localised to one particular country, so they are of no concern to those holding globally diversified portfolios - or if they are, then we are talking about a nuclear winter scenario, not a Weimar/Zimbabwe scenario.)

chockydavid1983

For those holding gold as a hedge, what % of portfolio are we talking?

Motormad

I have a 0.5 ounce coin but not telling you my address.