What good is the gold?

I have been looking at the information at hand, and it does seem that a global depression is very close.

Take the information like this, U.S economy, obviously everyone knows is unstable. There is no way to sustain the economy without an increase in the cashflow. I mean when you break it down, the economic system is designed so that as long as money keeps flowing through, it can continue to prosper. The problem is that without jobs, people don't have money to spend.

So if you stop there it seems you need more jobs... right?

Well yes and no. Because the problem is that to continue to create jobs you need to continue to grow the economy, which means you need more money flowing through the system.

But you can't just throw money at it....

So what about the rest of the economies? Everyone is looking at China... but how strong are they really?

Well China is also having problems... they have to create something like 2mil jobs a year or so, just to keep their economy from bottoming out, which is unsustainable, just like the U.S., they just aren't as far along.

Well there is always the Euro... oh wait... Why did all those countries join the Euro anyways? Because none of the european countries had large enough economies to compete in a global market, so they joined together under one banner hoping to strengthen their position. Well, now there are some smaller countries that can't sustain the value of the euro, and it is causing normally solvable problems to become overwhelming monsters.

Oh yeah Japan is usually a stable market, but... the recent events have caused large problems, not only the cost of repairing damages but now the food chain has been recently discovered as being saturated with radiation, which means they will have to import more food and rice, which in turn will increase food prices across the board.

And we can't forget Australia, they are accumulating debt like its a race, along with alot of other smaller countries...

Now what does this mean, well.... one of two things happen,
global depression, or war over recources. Oh yeah I forgot, or both.

Put it like this, everyone on your block goes into debt to the same person, now this one person knows that everyone is in debt and want some of the money so he asks for it, but not everyone can pay.

So each neighbor ask the other neighbors to borrow some cash, or they try to sell some of their stuff.
Those that sell their stuff can now either repay some of their debt, or lend it to the other neighbors, trying to make some money off the situation.

So now the neighbors that took the loans from their fellow neighbors or payed thier debts off, can now take out fresh loan, to lend to the the other neightbors to make some money.

Well at this point some interest is accumulating on some of the debts, this money wasn't in the closed system befor, where does it come from....

anyways you see where its going..... So now to my point, what good is the gold? What I mean is that, if all the countries continue to have large economic failures the price of neccesities will rise, some say I will invest in Gold so that I can trade it later for goods is it goes really bad, or perhaps the market will recover and I can sell it for more.

Truth be told, I think there will be a large crash in the global economy. The gold you buy now, may seem cheap, but will yeild perhaps small returns, or more likely large losses.

As for trading it for goods, who is going to be buying all this gold from you for these goods?

Although I don't think there will be a complete meltdown of the system, I doubt it will be as strong as it was for a long long time.



Also important to note, even though some may not believe in the 2012 prophecy ( I am not arguing it as fact by anymeans) Just the fact that it is so well known, will have an affect on the economy, all it owuld take is a few in high positions now to belive in it and ... well I guess they call it self fullfilling...

It's funny because maybe some of the people that have been trying so hard to spread this news could be one of the reasons it happens...

reply to post by KingAtlas


Gold is THE measure of wealth and exchange amongst those that own us and the entire banking system the World's Central Banks.

The paper that we call money is issued by the Banks in order that they can charge interest on something that is in essence worthless.

Thats why they are RICH and the majority of the world's population is POOR.

Gold is the best physical object for storing wealth over time.
If you only value things based only on their price in dollars you will continue to be confused on this point.
Try thinking about your neighbors example above but with only the actual physical economy taking place between them. Then think about the dollars and debts, which are really both just promises for these real physical things, as they both get way out of hand. More and more debts compared to the same physical stuff, more and more dollars compared to the same physical stuff. Over time the increasing number of debts and dollars will be valued much less when compared to real stuff especially physical gold.

i'm gonna eat my gold in a shtf scenario...

Gold is merely a symbol just like paper money, sea shells, beads, and beanie babies. All of these things are only worth the belief that they are worth something.
[note - other than the intrinsic value of any of the aforementioned objects.]

Food, fuel, labor, lumber and utilitarian items have intrinsic value which in a total collapse will be the only thing worth anything.
A good example of golds worth can be found in the "gold rushes". Look at what things like shovels, picks, rice and eggs cost. The big money makers in the gold rush eras (and areas) were the hardware stores, general stores and brothels.

Originally posted by trika3000
i'm gonna eat my gold in a shtf scenario...

Gold is merely a symbol just like paper money, sea shells, beads, and beanie babies. All of these things are only worth the belief that they are worth something.
[note - other than the intrinsic value of any of the aforementioned objects.]

Food, fuel, labor, lumber and utilitarian items have intrinsic value which in a total collapse will be the only thing worth anything.
A good example of golds worth can be found in the "gold rushes". Look at what things like shovels, picks, rice and eggs cost. The big money makers in the gold rush eras (and areas) were the hardware stores, general stores and brothels.

I hate when people say "you cant eat gold" well you cant eat paper money eather but you still have it! gold is to store money after you buy your supplys. I have everything i need for coming events but i still have a butt load of cash. what do i do with it, BUY GOLD and SILVER!

reply to post by camaro68ss


i'm buying beanie babies and antique cars...
You're right you can't eat paper money either, that's why i listed food as the first thing having intrinsic value... The smartest thing to buy now is property (land). It is dirt cheap and this recession thing isn't gonna last forever and land is always gonna be needed. Plus, you can always live, build and grow on land.

okay, i do understans the role gold plays in the market.

Although gold is SUPPOSED to be the marker for wealth and exchange, the problem is that it is not truly representative of the actual value.

If the global economy falls into a depression, it will be very hard for those in power to maintain while retaining a gold valued monetary system. Everyone seems to think it will all go back to normal... which I really don't think it will. This is a truly serious problem.

P.S. Also, I had a thought after I wrote this last night, would there be a benefit to collapsing the entire global economy at the same time, or whithin the same period systematically.
A thought occured, the true benefit to this would be that you could instate a new system and the entire world would be begging/thanking you for it.

To answer the title question. Gold is used for alot. Some forensic machines use it. It's also a very good conductor.

Actual value is a utility function:

The utility function of a house keeps you warm and dry, land for food and resources. A community in which that house resides of humans engaging in a productive real economy.

As the real economy goes to zero, the value or utility function of the house and land remains, providing you can defend it from the people who used to work in the real economy. Gold becomes nice yellow metal with no-one to trade it with over the fence. You're on your own there.

If there is going to be any real economy on this planet, if some people are going to do more work than they require to just live, then there will be people wanting to save the proceeds of extra work now for later in life.

All goods have their main utility funcion, some have a secondary utility function in that they can be stored over time and 'spent' later, providing a means to save. Some items work better than others at the utility of storing value.

Gold has physical properties which the free market always chooses as the item whose best and primary utility function being to store value through time.

Now what are you going to have as we move through the crisis? A house in a decent community and with any extra cash left over after supplies, physical gold.

the point i was trying to make is that any gold bought now, is not going to worth as much later.

If you watch gold prices they have dropped huge, had a small rally lately then not doing great today.

The main point I made in the OP was that The pphysical gold you buy now won't be worth more in the futur unlike alot of times in history.

The market has to go into recession, because of the debt. If governments can't afford to spen they have to reduce social services, and tax breaks.

Which in turn means people have less money to spend into the economy as diposable income.

The reason why we will go into recession is because every country on earth right now has to create more and more jobs just to hold onto their economy. Our governments have created a GROWTH-DEPENDANT economy.

Without growth the economy recindes and creates a recession. Now alot of countries are in a recession but havent had two consecutive quatres of loss in a row, which defines a recession. So it's mostly a technicallity.




I didn't say gold would have no value. unless a SHTF senario occured.

Originally posted by trika3000
i'm gonna eat my gold in a shtf scenario...

Gold is merely a symbol just like paper money, sea shells, beads, and beanie babies. All of these things are only worth the belief that they are worth something.
[note - other than the intrinsic value of any of the aforementioned objects.]

Food, fuel, labor, lumber and utilitarian items have intrinsic value which in a total collapse will be the only thing worth anything.
A good example of golds worth can be found in the "gold rushes". Look at what things like shovels, picks, rice and eggs cost. The big money makers in the gold rush eras (and areas) were the hardware stores, general stores and brothels.

If you eat it then you can produce Gold nuggets and sell them back to people for profit . lol

just kidding.

reply to post by KingAtlas


in a SHTF situation though, in the aftermath wouldn't lumber be the most valuable, as you can use it to build shelter and heat your body, and food so you can use it in the process of cooking food and it is everywhere.


Can you make a fire with gold or silver ?

Can you build a shelter , yourself or with 2-3 other people out of gold or silver ? You would need a lot !

Can you use the heated gold or silver to cook your food over ? not unless you have a fire that cooks to over a thousand degrees.


So yea Lumber to me is possibly the most valuable thing we have at our disposel.

We just don't do a good job or replenishing it.

reply to post by LucidDreamer85


no thats my point exactly as per the context of an SHTF senario.

I did mean gold would be worthless in that context.

Actually I think water will probably be the most valuable depending on region.