WHY I Dont Invest in Gold/Silver

Originally posted by superman2012

Originally posted by neo96
reply to post by superman2012

 

In an economic collapse people won't be working so people can't pay for their land or food given the fact that gold or silver can't be eaten to me seems like the preferred choice of barter.

You can pay someone to dig a well etc

What are the bankers going to do with the land? Sit on it? If it is nationwide, that is extremely doubtful. I'm sure someone would rather get paid with food/clothing/water/shelter for digging your well then with some shiny pieces of metal. I know if I couldn't afford my house or food, that would mean I have no means to support myself or to feed my family. Where am I going to keep all my gold that you are paying me with if I have no house?
If you have no means to purify water, and a member of your family is suffering from a waterborne illness, would you take the gold to dig the well, or would you take medication, or a means to purify water so this doesn't happen again?

You take the gold/silver so that you can then use it to buy medicine. Problem solved.

reply to post by St Udio


Dude I dont know where you live but we just dug one last year! Its pretty common practice for farmers and done on a regular basis. Getting them approved by the county is cheap and quick.

reply to post by phantomjack


Buy it from whom? Me? No thanks, I don't want shiny metal for my medication.

Texas Wants Its Gold Back From The Fed

The United States and many other countries stopped pegging their currencies to the gold standard decades ago. Capriglione said the bill is not about putting Texas on its own gold standard. Rather, a depository would give the state a reputation as being more financially secure in the event of a financial crisis.

ATS thread


Those silly buggers. What are they thinking ?

Gold is useless. Don't they know that all they have to do is take a bushel of tomatoes over to Walmart if they want to buy more ammo or medication in the event of a financial crisis ?!

reply to post by CranialSponge


More financially secure for whom? You?
You must be insane if you think they will give you gold or other PM's to buy something at Walmart...did you also think Obama would give you free phones, gas and food?

Edit: I'm all for whatever anyone wants to keep for their own peace of mind...my peace of mind comes from my own ability.

Originally posted by superman2012
reply to post by CranialSponge

 

More financially secure for whom? You?

You must be insane if you think they will give you gold or other PM's to buy something at Walmart...did you also think Obama would give you free phones, gas and food?

Edit: I'm all for whatever anyone wants to keep for their own peace of mind...my peace of mind comes from my own ability.

edit on 24-3-2013 by superman2012 because: (no reason given)

No more ridiculous than you're idea in thinking that gold is just a useless "shiny metal"...

Why would this Obama guy give me free phones, gas, and food ?

Again, you're making the silly assumption that I'm not already well stocked and prepared for a zombie apocalypse... Not to mention the assumption that I'm an American that somehow gives a flying rat's ass about this Obama person.

implying people who stock metals, dont stock anything else.

this topic was made to bash those who do 1 out of 100s of things.
the true ignorance here is the OP and supporters thinking prepping 1 item means you cant prep others.

reply to post by Bisman


Amen to that.

They either don't get it, or they're purposefully playing the logical fallacy game to give themselves a sense of false comfort.

Or both.

if the world has ended, and i am trying to barter for 20 cases of twinkies; well what if the man with 20 cases of twinkies dosnt want my 10 barrels of mountain dew or 5 boxes of cigarettes. Nor does he accept my offer to help him bathe his dog or paint his windmill.

he instead only needs 2 barrels of mountain dew and 1 box of cigarettes. well that isnt really a fair trade for the 20 cases of twinkies i want.
thus, we toss in some silver coins to match things up. because they are good for any item.

It's true that if there is no more oil or steel or resources entering the country or region that you live then people will be hungry and fighting each other and it will be useless to you at that point to have gold and paintings, fine art, vintage cars and antique furniture. You will need to be self sufficient for as long as there is no trade between your area or country and other areas of production.

Something to consider though is that hidden reserve wealth may be valuable if there is trade between regions. If countries continue to trade then you might want to consider that gold has been trading at tens of thousands of dollars per ounce for the past few years between the giant oil producers in the middle east, the giant steel producers in the east and the other giants, when the global debt crisis is settled this behind the scenes value will come to the smaller bits of gold too.

"So, yes, those higher prices are already here for the super-wealthy Giants, and always have been. That's what Another was trying to tell us. And this is my version of a "top level approach"! ;D"
Think like a Giant 2

First thing that will happen is an underground economy will spring up....There will still be markets for skills like plumbing, el;ectricians etc....
The barter system only goes so far. and ten the precious metals will come into their own....
if the gubermint wants our gold, itll have to take our guns too i reckon......
Nobody will fall for the old FDRtrick again.......
Silver coins and small amounts of gold (they make breakable wafers of gold that are sectioned off.....)
.will automatially become the standard fare.....you cant carry tomatoes in yer ass pocket......
Crops and goats and ducks are fine to a point....but money will always exist.

Originally posted by Bisman
implying people who stock metals, dont stock anything else.

this topic was made to bash those who do 1 out of 100s of things.
the true ignorance here is the OP and supporters thinking prepping 1 item means you cant prep others.

If you read the OP you will see that this wasn't made to "bash" anyone but as a warning based on what he/she perceives to be right.

There is more than gold to secure your future, just saying.

More than...not, do not get.

Just because I will not invest in a shiny metal doesn't mean that you can't. I have said before that everyone is entitles to what they want for peace of mind. I have argued my side of it, others have argued theirs. Both sides have a bit of "rightness" in their arguments, you just have to find the right/wrong person to barter with.
As to the Canadian poster that brought up an American state wanting it's gold back...I'm confused as to why this was brought up and still waiting for my original question to be answered.

More financially secure for whom? You? You must be insane if you think they will give you gold or other PM's to buy something at Walmart

If you collect shiny metal for future trading that is fine.
Myself? I will concentrate on pursuing more knowledge and investing my money on goods that would be beneficial to me immediately following some disaster.

This topic reminds me of Ezekiel 7:19:
"They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the Lord: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity."

And since everyone is saying what they think is best to have, I will say a Bible, lots of faith in God, and these things:
Flour.
Lots of vitamins.
Good strong clothes on my back and good water proof boots on my feet.
A strong canvas.
Small spool of heavy fabric to patch clothes and canvas.
Tools like a hatchet/shovel combo, needle and thread, scissors, knife, bow and arrows, and a tooth brush.

*The canvas should be able to fold into a duffel bag, and it should have pockets sown into it to store the above items.

That's about all I can think of, since I haven't really put a lot of thought into it.

Oh and some kind of rope would probably be good too. Oh and extra bow strings and a flint strike lighter. (I think it's called flint strike.)

reply to post by Bisman


LOL ignorance of the OP and Bashing people. Wow Sensitive group. A guy gives his opinion and what HE does and next thing hes the target. LOL Tough crowd. Why dont you spend more time dwelling on the reason and less time getting your feelings hurt. Never Once did I say people who buy PM wern't capable of anything else.... That was a hugh leap...especially when the OP use to lve in the beltway and invested most of his wealth. LOL come on lighten up and understand what were talking about. Can't learn nothing if all we do is toss rocks.

But back to discussion. ANY Government with employees even capable of suggesting a Trillion dollar coin should be pressed to pay off the debt is stupid enough to try to take Gold. And I don't think Im the only one thinking this way since Texas is contemplating removing their Gold and storing it at home. I dont think they (govi)have a bit of intrest in my cans of beans and shaving razors. Rifles, maybe, they tend to be a little paranoid. So, yes I do believe that when all is said and done bartering will be the only way because it will be illegal to trade in precious metals on the street. Like someone said thats for the countries to deal with and I think thats exactly how governments look at it. Little guys dont need gold.
No you can say this is mad maxish (well it kinda is) But look at Russia when they went TU. Gangs ruled the streets and they are JUST NOW appearing to be stable. 1991-2013 ; 22 years need a lot of beans or mafia connections (much smarter)

From an investment aspect, the reason why people buy gold is because it is a fairly good hedge. Gold funds typically have a beta of around 0.2-0.4 which means that when the market dips, gold will only dip 20%-40% (and sometimes it even increases in recessions acting counter-cyclical).

Aside from that, it is a terrible investment with historical returns of about 6% which is much less than a standard mutual fund or index fund.

We are all mature enough to avoid putting our eggs in one basket of that i am sure......
Just remember when the werewolves are at your door that ill be the guy selling silver bullets..........

reply to post by sprtpilot

Uh huh... if you see them coming. In my scenario you see them coming. You aren't on the toilet or asleep or typing on your cumpootur...

In my other scenario they are the relief effort distributing food to your neighbors but you think they are thugs and begin "quickly handling" them...

It's good news you don't do gold/silver. It's too easy to find with a metal detector, not counting that financial maze you call investing and banks.

Let me add my reason:

Once when I was younger I was visited by time travelers. A man and his daughter. They were time tourists, had a contraption they could hold in their hand, and were in the neighborhood to eventually get to this man's great great uncle. He did not have money to afford the necessities of life at the time he visited, but he had barter. Not silver or gold, but jewels. He had a bag of synthesized rubies; they must have been more abundant in his time, but in the early 1980s they were pawnable for cash to afford hotel, food, transportation, and so on. This was before we had equipment to test to see if the rubies were natural or synthetic, like that would matter. Also before the massive surveillance state, with cameras everywhere.

I ain't making this up. That's why I don't invest: I'm counting on time travelers to bail me out of a nightmare society.

Just kidding. When desperate enough, there is always the problems of mankind to find what was lost: thievery and murder of one's enemies, cheating habits. What? That's what time traveler tourist was doing, cheating by visiting his great great uncle.

reply to post by CSBowie


The reason Gold was confiscated by FDR was to devalue the currency, and gold had to be confiscated because the dollar was pegged to the value of gold. In 1933 Gold was just over $20 an ounce... gold was confiscated and then revalued to $35 an ounce, devaluing one's purchasing power by 70% overnight. This was the only way to print more moey back then because of the gold standard. Gold had an entirely different function back then, and everyone owned it. Today, roughly 1% of the population owns gold, at least in any significant amount. The point is that Government today will not pull an FDR because it isn't going to accomplish anything.

Silver right now as I type this is the most undervalued asset in the history of the planet... both the gold and silver markets are heavily manipulated by central banks and institutional investors through naked shorts and other means, which is why gold and silver are still so cheap. Eventually the manipulation will no longer be able to sustain, and the price of gold and silver will blow past the moon, this in not an opinion, it is math.

I agree that you can't eat gold or silver, which is why people should take care of all of those needs (food, water, ammo, whatever....) FIRST and then get into gold and silver, although most people can't afford gold, but silver is very cheap right now. If people stay in fiat debt paper then they will be destroyed by an economic collapse.

reply to post by CSBowie


Though your points are rather salient on the surface, the issue is far more complex than you are stating it here. You MUST have at least 3-6 months of food and water, and bartering essentials to survive. Many of the "smarter" individuals you mention who keep saying you need also cheap circulated gold and silver are still correct. If you have more than a few sheckles to your name, and you have prepared thoroughly you will want to keep some of that money when things do improve. THAT is what you use the gold and silver for, along with some small bartering of circulated coins to get you a loaf of bread or some supplies in the meantime. If you have a little you'll be happy you had it.

OH AND it is a good idea for your retirement. So not buying it is simply stupid, particularly with prices at the most manipulated and lowest they'll be in decades right now.