I guess a picture is worth a thousand words as they say.
In response to Jake51 and his advice. I also believe its a good thing to have a stock pile of daily needs like foodstuffs, etc. to get through any
periods of instability. However, your advice on not acquiring gold and silver is dead wrong, and I'll tell you why.
Short of a miraculous economic recovery, which most of us do NOT believe is going happen anytime soon there are three possible futures, or slight
variations of them:
Total Econmic Catastrophe and Chaos. In this case, I do not believe any amount of stock pile will save individuals, as the true test to survival will
be localized coorperation, sharing and barter. In the words of our Forefathers - to provide for the common defense and to promote the general welfare.
Folks who choose to go hide in the hills or the woods, or barricade themselves on their property are only postponing the inevitable. Human history
shows that we thrive only in a society, not as lone individuals cowering in the wild or behind castle walls.
Severe and Prolonged Economic Depression. In this case, we experience something like the Great Depression, only deeper or longer or both. While some
truly did not have enough to eat or places to stay, even at 25%+ umemployment - most did. And in fact, while vast multitudes lived deprived, many
people made fortunes (albeit on off the misery of others), by buying up devalued land, starting business ventures with cheap labor, and acquiring
material possesions at rock bottom prices. The people that did this had one thing that many did not - savings. One's savings went much farther then.
So again, those that prepare for a Mad Max scenario could perhaps find work as 'private' security guards, or form armed gangs to rob honest folk,
but really won't be that much better off than those that have taken a less drastic path.
Continued Status Quo -or the Great Recession continued. In this case, the US and the world pretty much continue like it has been for the last couple
years, with short economic rallies and falls, sometimes easing unemployment and sometimes making it worse. However, in this case, while we may have
localized riots, we do not have a collapse of the social order or dissolution of all governments. The best strategy here is to prepare oneself for
periods of unemployment or temporary local emergencies and item shortages.
In each of these cases, I believe that there is one common denomenator, and that is a continued reliance on governments to throw money at the
problems. That money is currently the US dollar. As we have seen, as we print more money to fund more 'cures', one thing inevitably happens, and
that is dollar devaluation compared to other currencies (unless they are doing the same thing at a higher rate) and to GOLD. Ten years ago our
national debt was less than half what it is today: national debt
Likewise Gold's value was much less, about a quarter of what it is today:
Gold Price 2000-2009
While some of the reason for Gold's rise in value is due to increased deamand from investors like me, who feel it represents an alternative form of
savings, the vast majority of its rise is actually due to the devaluaion of the dollar during that time period. It is a fact that from 1789-1933,
while the dollar was backed by gold, that it NEVER devalued, except for a short period during the Civil War when the US printed dollars not backed by
gold (the first greenbacks).
So, in summary, while I do not know which path above the US may eventually take, I do know (with over 2000 years of history on my side) that GOLD will
still have value when its done. And for the record, I personally think the only path out of this mess, is for the world to return to a Gold Standard
of some sort.