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The Economic Depression has just hit...but you have gold, now what?

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posted on Aug, 29 2007 @ 09:27 PM
How long do you keep it, if and when you "cash" it in, where do you get transferable currency for it? Before I buy gold I want to know exactly what are my options when the big economic crash hits. How do I know I'm getting market value for the gold I have when I go for an exchange, it seems a few novices could be swindled in a depression because they might desperately need transferable (paper money) currency for goods.

posted on Aug, 30 2007 @ 01:50 AM
While gold is fine and portable, I'd have a bag or two of silver for daily living. Silver is what money used to be made of. Gold was used for large tranfers. Gold should be your back-up nest egg, most merchants will gladly accept real silver coinage in place of useless federal reserve notes. If the US Congress gets weird again and decides American must turn in their gold coinage again, silver again will be the only way to pay for your daily needs. A standard roll of pre-1965 Silver US dimes is worth $55 right now. Each silver dime is worth over $1.181 right now. Any merchant worthy of the name will be able to give you a fair exchange rate in silver for his merchandise. Most international banks also recognize silver coins as hard currency no matter what happens to paper currency.

posted on Aug, 30 2007 @ 01:55 AM
I have seen a similar discussion elsewhere, where people were talking about "buying" gold instead of stocks as it was safer. Now, this is all well and good, but they often don't get to actually see, touch or smell that gold. It's an investment in gold but they don't actually have it in their hand or sitting on the mantlepiece. So, if a crash happens, the chances of them actually getting that gold is nil. In fact if a crash came then the government is more likely to seize any significant amount anyway

posted on Aug, 30 2007 @ 05:28 AM
many opt to have their gold vaulted somewhere else, but you can buy gold and have it shipped to you....

personally I would be cautious about having a broker or whatever vault my gold for me, I'd be afraid that they might have shorted (sold more gold than they had) and if there was ever a run on cashing out the gold, they wouldn't have near enough to cover everyone...

posted on Aug, 30 2007 @ 07:11 PM

Originally posted by Amelie
it seems a few novices could be swindled in a depression because they might desperately need transferable (paper money) currency for goods.

The very premise of having gold for such a situation is that paper money will be completely worthless. Otherwise you might as well just stock up on paper money. There is also no point in having your gold vaulted in a bank's safety deposit box where you won't be able to get to it when you need it.

I still think canned food, fresh water, and ammunition will be worth more than their weight in gold, literally, if any situation serious enough to collapse the paper money system occurs. If things are that bad, no one is even going to want to take gold. If the long-term future looks bleak, there is no reason for anyone to take any kind of non-useable resources like gold, jewelry, gems, etc. If you are storing any kind of metal for survival, it should be bars of iron that can be melted at relatively low temperatures made into a variety of tools and weapons... but then you need blacksmithing knowledge as well.

On a non-survival gold investing note, I personally own (shares of) a gold index fund, which is comprised of more than 30 different gold mining/producing companies. Being 20 years old, it's worth the risk of not actually owning physical gold to me, because gold doesn't gain value nearly as quickly, nor does it pay quarterly dividends. In the future (when I'm 40 or older) I may put 5-10% of my savings in "real" gold/silver, but right now it doesn't make sense. But if all you want is low risk and low growth, buy yourself a massive safe and some gold.

On the bright side, you can always put your gold in a sock and use it as a weapon

posted on Aug, 30 2007 @ 07:41 PM
As mentioned elsewhere on this forum, and on this same thread, there are more valuable things than gold....especially if the country is so messed up that no one coined or would accept government currency.

ammunition, guns, bows, cigarettes, liquor, warm coats, BOOTS, long term food caches, things like that are always useful. Think about anything that you couldnt make or find immediately around you and that is what will be in demand. they dont grow tobacco or make ammo where I live.

If you want metal, see about finding small denominations of gold or silver. dont buy a 10 gram bar, buy 20 coins of .5 grams each. ebay has plenty of gold and everything else you could want.

posted on Aug, 30 2007 @ 08:50 PM
reply to post by Amelie

Some gold coins, more silver coin. I don't recommend bars if you are thinking about using these to buy things after the Meltdown. I don't believe in gold stock investments. The real deal or nothing. And coinage can quickly come into use regardless of what country it is from. You can test gold pretty easily... but let's not get into all of those nightmare scenarios just yet.

If you live in a large city there are any number of Currency/Coin Exchanges that will gladly accept your Federal Reserve Notes (and happier still to take your Swiss Francs LOL or Euros) for gold coin -- Canadian (Yeah!) or American or something else. The Dutch have some gold and silver coins that are almost always overlooked except by the collector. I believe Aruba continues to mint its own silver and gold coinage too.

The copper price is pretty low at the moment and copper is an undervalued but necessary metal even after the breakdown of all things. The folks behind the Liberty Dollar (not US Federal Reserve) make copper coins (I think even one with Ron Paul's face on it) valued at one Liberty Dollar to one ounce of copper.

Also there are other mintings in gold, silver, copper as well as platinum from various countries.

But be sure to deal with someone reputable, and not BillyBob on the internet.

All the best!


posted on Aug, 31 2007 @ 07:21 PM
We just had a very valuable lesson in post-catastrophe economics two years ago: Katrina.

In the event of collapse, gold is worth only what you can kill by throwing it.

Gold will not buy you food. Gold will not buy you water. Gold will not keep you alive.

Gold has value only in the sense that it will have value after a recovery. However, in the modern global economy, an economic collapse means a global collapse. Recovery will take a very long time. By the time that gold is worth something again, you will have long since starved to death.

If you have a big pile of cash to roll around in, go ahead and invest in a small amount of gold coin. The rest of your assets, for survival purposes, should be real-world commodities: Food, drugs, and ammo.

posted on Sep, 3 2007 @ 11:40 PM
A prostitute.

Im not saying this to be funny, or upset anyone, Im thinking logical.
ALL men have .. "needs", and if you KNEW a woman that did that sort of thing, and WANTED to, THAT would be the easiest way of getting what you need in return for her .. "services".

posted on Sep, 3 2007 @ 11:58 PM
Invest in solar power and wind power. I say this because you can buy grow lights,fertilizers, and seeds to produce your food year around(indoors). Invest in water purification equipment,55 gal drums for rain water collection, and try to go on well water. The electric pump to the well will be powered by the sun or wind. Buy books on growing organic and survival. Be prepared to live in the 1800's. Like the previous poster, gold will be useless when food and water will be what everyone wants.

posted on Sep, 4 2007 @ 12:51 AM
It would depend on a lot on what actually causes the crash... Will you be able to stay in your home or will you be on the move? How much can you carry without being obvious and or being robbed. If you do decide to invest in paper be sure and have back up physical stockpiled close at hand as well. Get to know who you can trust ahead of the worst case scenario before hand and have a clear idea of who is trustworthy and of like mind. Gold chains and links will also be acceptable in worst case scenario. Yet junk silver will be your best bet (pre 1965 dimes good example) One more thing what are your thoughts on the government asking for you to turn in your gold and silver and how many people are aware of what you do have that could be placed into situations where they will turn you in? The most important consideration for this line of thinking is to pay down all of your debt.

posted on Sep, 4 2007 @ 10:59 AM

Originally posted by antar
The most important consideration for this line of thinking is to pay down all of your debt.

Check. That's the most important thing I did this year, was pay of my debt. I owe no one. Now I hope to make real investments that will protect me in the possible upcoming economic turmoil. Silver? Sounds good to me.

posted on Sep, 7 2007 @ 03:12 PM
Lets assume for a moment that the market crashed, receeded, or was otherwise rendered extremely weak or fragile. But in this example, the rest of the world was fine and not in any rampant chaos. So there would still be an economy just one where dollars were virtually worthless. But, the smart person preparing for disaster bought several ounces of gold or silver from a reputable mint such as johnson matthey. So, since the country is still relatively stable and the market is still open but in bad shape....where could i turn in my gold for some other form of currency? Could i just walk down to bank of america and say hey i want what my gold is worth in cash?

posted on Sep, 7 2007 @ 04:32 PM
reply to post by xenya

Gold would be best used a tangible asset when dealing with the banks or brokers when picking up other folks foreclosed properties. Believe it or not, there were many folks who came out of the Great Depression much better off then they came in because they owed no debt and used their cash wisely to gain other desperate people's property. That's how the corporate agribusiness started, banks were left holding huge tracts of abandoned but arable farm land. They usually hired the local farmer who smart enough to retain his land to run the business or one of his children who's just starting off.

IMHO in real future economic breakdown, a person who has a tangible skill will never starve or go broke. The service sector of the economy will suffer the most. The nearly lost art of electronics repair will come back as once cheap electronic goods will be too costly to buy. The same will go with other home appliances. The lumber yard will go back to being the haven of the working handyman and not the home owner trying to make his already overpriced house even more expensive to buy. Basic will be in, luxury out.

posted on Sep, 7 2007 @ 04:36 PM
Good info and I agree completely. However, if things did not get that bad or even if they did and banks were still around....would someone give me cash for gold besides other people, i.e. some kind of institution?

posted on Sep, 8 2007 @ 04:14 PM
reply to post by xenya

The best place locally to exchange a commodity(gold) for currency is through a broker and if all else fails a pawn broker or a coin dealer. When dealing with a coin dealer or pawn broker, always ask for silver in exchange for gold not currency whenever possible for previously mentioned reasons. Avoid the banks and nosy and gossipy merchants.

posted on Sep, 9 2007 @ 11:11 AM

Originally posted by crgintx
reply to post by xenya

The best place locally to exchange a commodity(gold) for currency is through a broker and if all else fails a pawn broker or a coin dealer. When dealing with a coin dealer or pawn broker, always ask for silver in exchange for gold not currency whenever possible for previously mentioned reasons. Avoid the banks and nosy and gossipy merchants.

awesome I had not thought of coin dealers and pawn shop owners. However, you mention broker....what kind of broker? The only kind I am aware of is a stock broker or real estate broker.

Also, would you recommend gold bullion or gold coins.....domestic or foreign coins? Does it matter where the gold is refined if it is authentic, 24k gold?

[edit on 113030p://am3031 by xenya]

posted on Sep, 9 2007 @ 02:40 PM
reply to post by xenya

A commodities broker. Precious metals are considered a commodity like steel, copper and aluminum. Either bullion or foreign gold coins are fine for building a true cash reserve. Domestic Silver coins are what you should use for bread and butter if and when things get bad. I've heard ratios bandied about of 75% gold to 25% silver in value but I think 80/20 or even 90/10 will work depending on your financial situation and where you live. Never let anyone know you have gold coins in your possession with the possible exception of an insurance agent if you keep them in your house. Silver coins can be exchanged just about anywhere and I'm dead certain that some merchants will probably give you melt value for your silver coins if things go sour. Believe or not, even real copper pennies are more than double their face value in melt value.

Do a search on coin values. Always check your quarters and dimes for pre -1964 coins. They're real silver.

I've a young friend whose a cashier at a convenience store whose collected over $20,000 in silver coins by checking the till for real silver coins and exchanging them for face value in modern coins and cash. He did this over a couple of years. Some meth-head even paid him for gas with $20 gold piece that was worth some $300+ dollars. Most folks are extremely ignorant about real money.

posted on Sep, 9 2007 @ 02:52 PM
I also thought of converting my money to gold,but if there were a crisis food or water would be priceless,walking around with all sorts of bling or gold bars would be like owning a gun but no ammunition

posted on Sep, 10 2007 @ 08:12 PM
Good replies. Your "friend" sounds like a genius. It appears that, as far as gold coins go, that their face value means nothing and is more respective of its relative scarcity and NOT its actual value in gold. Meaning a bar of gold bullion is typically worth what the stated amount of 24k gold is worth, but a hundred year old french rooster gold coin is going to be worth way more than its weight in gold. For this reason, and check ebay to confirm, I would go for domestic silver coinage as a previous poster said or gold bullion minted anywhere if it is .9999 pure 24k. As a side note how come its never 100 percent pure gold, always 99.99% or less?

And I believe that no matter what happens gold is still valuable, maybe not at first, but once food sources stabilize and townships begin to strengthen, gold will come back into play. 1929 wasn't pretty but if you had gold you were sure to pull through.

Another thing I have noticed is that if one wanted to buy physical gold bullion that ebay seems to be the cheapest and easiest way to do it online. Its usually like a few dollars more or sometimes less than spot rate on current gold values in small denominations. maybe a few hundred more per ounce. But looking at some "accredited" sites online they often have a minimum shipping charge of 30 dollars or something like that. Maybe it would be wise to check coin shops if one were interested.

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