Here is my thoughts on buying gold as a hedge against bad economic times.

You may buy and own gold and it may be worth much, much more than you paid for it. But when you go to sell it; who will have enough money to buy it. Why would they want to buy it at a high price? If you can't sell it; essentially it is worthless.

Is my thinking not quite right here? Why?

During the last Great depression & the Wiemer Republic, people bought entire Hotels for one gold coin. Thats why gold & precious metals are a real store of value. Creditors will come with the entire force of the law & gov't and will demand payment of debts. People will be under such a massive debt load when the plug is pulled that if you plan for it in advance, you will be able to amass incredible real wealth like property, farms, livestock, land, military equipment.
Store chocolate, booze, cigarettes as well cause they will become a form of currency as well.

[edit on 13-7-2006 by BattleofBatoche]

Originally posted by the_sentinal
BUY GOLD NOW!!!! it's the only way to somehow survive ...

What are you gonna do with a gold coin, throw it at someone?

Buy brass instead.





[edit on 23-8-2006 by In nothing we trust]

Originally posted by whaaa
Here is my thoughts on buying gold as a hedge against bad economic times.

You may buy and own gold and it may be worth much, much more than you paid for it. But when you go to sell it; who will have enough money to buy it. Why would they want to buy it at a high price? If you can't sell it; essentially it is worthless.

Is my thinking not quite right here? Why?

I see your point of view and it does appear to have some logic. I just see it this way: What is worth more? (Or what will be worth more in case of such a scenario?). A piece of paper with a presidents face and numbers or precious commodities like gold/silver? Well, when a severe depression hits, i guess people will use their paper money (i think it has some linen in it though) to burn in the fireplace to keep warm. It would be cheaper to use that then wood probably. LOL. Anyways, I am attending high school right now and the meager money i've ever made i've put a fourth into a dirtbike, a fourth into gold/silver, a fourth into a savings/college account stuff, and a fourth for anything else.

Also, i hope that such things will never happen. I have been fortunate enough to live in beautiful California since my parents immigrated here from Europe. I have been fortunate enough to have never been upon hard times, except my parents and probably all my other relatives have been.

On a side note, i have always wondered what would happen if there was a known procedure to make gold. I know that these days synthetic diamonds can be made. I remember seeing it on a documentary I think. Nevertheless, I am not sure what costs these are made at but i believe from what i know they are flawless and for the most part identicle with real diamonds. Well back to the gold. What would happen? What would money mean if there was nothing valuable to be backed at all. (Considering that the procedure to make precious metals was cheap.)

I thought I would bump this and bring it to discussion because the Op was made in 2006 and it talks about an economic crash. I realize there have been signs of this coming for a long time, but either way, its still interesting that 2 years later there are now huge economic problems.