Wonder why the Gold/Silver Rush is happening?

[Mjolnir]

I'm afraid you're wasting bandwidth...

Be sure to keep a few full PMAGS onhand for the sudden spike in BROKE goblins to snatch your wealth, guys...

 

[tupperware9mm]

It'd be a hell of an investment if the US dollar crashes(Like it's doing) though correct?

Don't think of it as an investment at this point,... think of it as insurance. When it comes time to use it, the value will be way down but the dollar will be worthless. I hope and pray that it won't but from everything I have seen and read its not a matter of "if" it will happen,... its a matter of when.

 

[leVieux]

We have quite a "loose Cannon" on here.

Some folks just don't understand either what is going on OR basic economics.

Our US Dollar is certain to lose value in the near and intermediate future.

Gold will not take a dive for quite a while. Maybe a "dip", but certainly not a dive.

Limbaugh, Beck, & most of us are just more savvy than the "loose Cannon"; which has large mouth but small brain.

leVieux

 

[James Cannon]

Limbaugh, Beck, & most of us are just more savvy than the "loose Cannon"; which has large mouth but small brain.

Yes, and they have -nothing- to gain by increasing the demand for Gold, now do they?

But hey, go ahead and keep up the ad Hom. It's awesome. Really helps your case. I should have tried that approach instead of all the facts and references and explanations of my logic. Oh well, maybe next time.

 

[posse comatosis]

DOWN, DOWN, DOWN--Johnny Cash

 

[Summit_Ace]

Let's see, Gold's value is relative to the value of the dollar. If the value of the dollar goes to ZERO (which is where it's headed), then the value of Gold will be related to WHAT?

Food, medications, bullets, tents, etc., are going to be worth more than gold or silver.

I am no economist, but I am a thinker and this is where I think we have gone wrong. I think many of the problems we have today would not exsist had we not gone off the gold standard.

"Let's see, Gold's value is relative to the value of the dollar." This statement I believe to be backwards. The problem is we judge gold value in dollars when we should judge dollar value in gold, or silver for that matter. there was nothing wrong with silver certificates and precious metal is precious metal it is all relative.

For the ease of explanation I will use silver in the following argument. In 1962 a loaf of bread cost 22 cents. If you payed for your bread with a 1962 quarter the "value" of that same quarter today would be $5.53 with silver at $30.60 an ounce. if you used two 1962 dimes and two pennies to pay for your bread the "value" would be $4.43 cents in silver content.

My point is that the "value" of precious metals has not changed nearly as much as our dollar has. The change in value it has had has been up. Unlike our dollar which has made a fairly steady decline since or decision to move away from the gold an silver standard.

 

[jimdana1942]

I'll say it again, Gold and Silver have their market value tied to the value of the dollar. When the dollar completely becomes worthless then what will be the value of gold and silver? Nothing.

Put your money in survival products and rations.

 

[Mjolnir]

I'll say it again, Gold and Silver have their market value tied to the value of the dollar. When the dollar completely becomes worthless then what will be the value of gold and silver? Nothing.

Put your money in survival products and rations.

BS, my friend. The value of gold and silver (and other commodities like oil) value is inversely porportional to the value of the dollar not directly related to the value of the dollar.

If the dollar is truly strong the cost of gold decreases. The price of the dollar plummets the price of gold skyrockets. You can also see that this is true for foodstuffs, most imported items and all commodities, in general.

 

[jimdana1942]

Lost cause, most just don't understand.

When the dollar collapses along with the economy, tell me just what gold will be worth?

 

[leVieux]

Obama et al are intentionally pissing off the last of our credit & national assets in an effort to drive the USA into SOCIALISM.

I fail to see how this is so difficult to understand.

Mr jimdana, you need a basic Economics lesson.

The "price" of Gold is an index of the value of the dollar or any other currency. The less the dollar is "worth", the more dollars it will take to buy the same amount of Gold or any other hard asset which has intrinsic value. The dollar has not been tied directly to Gold since Nixon took the US off of the "Gold Standard", several decades ago.

leVieux

 

[del4]

Ya'll are talking apples and oranges. In the event the dollar loses more value or the stock market collapes gold's value will increase. If the poop hits the fan or teotwawki then gold is worthless. It will depend on why the dollar has lost it's value. Then it's like hoarding food or ammo, how much is enough?

 

[Nomad.2nd]

I'll say it again, Gold and Silver have their market value tied to the value of the dollar. When the dollar completely becomes worthless then what will be the value of gold and silver? Nothing.

Put your money in survival products and rations.

Go look at post ether World War Germany, Zimbabway (SP?) and all over the world and learn how wrong you are.

It's not all your fault. You grew up in a time when gold was measured by FRN's rather than the other way around as it really is.

Check history as others have said.

For thousands of years PM's have had value.
(And to the question of what it's done for me.... 3x- 5x returns...)

I would NOT buy PM's now however, rather when no one's interested.


But you need to correct yoru fundamental misunderstanding of the way this works.

 

[Mjolnir]

Lost cause, most just don't understand.

When the dollar collapses along with the economy, tell me just what gold will be worth?

Your life, perhaps?

 

[JadeRaven]

Unless you maintain all of your wealth in US currency, to the individual, the dollar's value is not really all that important.

While I'm sure there are old ladies who just have a large savings account, most folks own assets such as stocks, bonds, homes, food, clothing, personal belongings, etc. . . which true values are maintained separately from the dollar.

And while I believe that gold maintains an intrinsic value, it too fluctuates regardless of the value of other currencies, and during a true depression or global meltdown, a bag of groceries could very well be worth more than an ounce of gold.

If you're looking to store the value of your savings account to get you through the bad times following a potential collapse of the dollar until the world returns to normal, gold is a good means of doing that. But thinking that you're going to be bartering and getting an equivalent value of food, clothing, shelter, etc with your $1,400/ounce gold is silly.

With $200 today you can buy about 1000 rounds of 9mm ammo, or a little more than a tenth of an ounce of gold. I truly doubt that during a "SHTF" scenario you're going to be able to convert your fraction of an ounce of gold into a case of ammo. In order to translate your wealth today into goods in a future scarce environment, to maximize your value I would suggest buying those goods now, and not some other currency, be it gold, british pounds, US dollars, etc.

Imagine you and the rest of the world are starving, and you want a loaf of bread, can of beans, what have you. . . how much stuff is your dime-sized piece of gold going to get you? Wondering where your next meal is going to come from, how much would you care to have a shiny sliver of metal? For the $~150 you spent on that 1/10 ounce gold coin, you could have bought and put away 100 cans of food.

Investing in gold as a financial investment is one thing. Investing in gold to feed you during the end of the world is another.

 

[Yrdawg]

Unless you maintain all of your wealth in US currency, to the individual, the dollar's value is not really all that important.

While I'm sure there are old ladies who just have a large savings account, most folks own assets such as stocks, bonds, homes, food, clothing, personal belongings, etc. . . which true values are maintained separately from the dollar.

And while I believe that gold maintains an intrinsic value, it too fluctuates regardless of the value of other currencies, and during a true depression or global meltdown, a bag of groceries could very well be worth more than an ounce of gold.

If you're looking to store the value of your savings account to get you through the bad times following a potential collapse of the dollar until the world returns to normal, gold is a good means of doing that. But thinking that you're going to be bartering and getting an equivalent value of food, clothing, shelter, etc with your $1,400/ounce gold is silly.

With $200 today you can buy about 1000 rounds of 9mm ammo, or a little more than a tenth of an ounce of gold. I truly doubt that during a "SHTF" scenario you're going to be able to convert your fraction of an ounce of gold into a case of ammo. In order to translate your wealth today into goods in a future scarce environment, to maximize your value I would suggest buying those goods now, and not some other currency, be it gold, british pounds, US dollars, etc.

Imagine you and the rest of the world are starving, and you want a loaf of bread, can of beans, what have you. . . how much stuff is your dime-sized piece of gold going to get you? Wondering where your next meal is going to come from, how much would you care to have a shiny sliver of metal? For the $~150 you spent on that 1/10 ounce gold coin, you could have bought and put away 100 cans of food.

Investing in gold as a financial investment is one thing. Investing in gold to feed you during the end of the world is another.

This is the explination I wish I had come up with...

It's been a wonderment to me for some time now HOW a person would spend gold bars at a grocery store ?? How would they make change ?? How would I order ammo on the internet with gold ??

Just seems to me that I'm better off storing food and ammo along with the daily living " stuff "

Oh...getting dirty look here,.... AND DOGFOOD

 

[Old_Demon]

You're correct about storing essentials and ammo - you may need them to survive. The hoopla about buying gold and silver is about preserving the wealth you have and not coming out on the other end penniless. It is not about buying essentials during the collapse.

 

[jimdana1942]

All I am trying to get across is that the U.S. economy is based upon the value of the dollar. IF the dollar were to collapse then WHAT would any asset be worth? A homes value is based upon the dollar value. As example, if the dollar were to "evaporate" then what would an "asset" such as a home or stocks and bonds or anything else value be tied to? Hope, hot air?

I am not saying don't buy gold, only to look at it in the worst case scenario, such as no more American dollar, no more monetary value for anything from a then bankrupt Nation.
At one time in our History the American dollar used to be tied to Americas Gold and Silver reserves, hence silver certificates and gold certificated. Not anymore.

Now, it's reversed. Gold, silver, housing, food, everything has it's value tied to the dollar.

When the dollar becomes worthless then is gold, silver, housing, etc. also worthless?

If you say no then what will those things be worth? Nothing, as there will be no trading commodity to relate a value to.

 

[Yrdawg]

If I get any wealth I'll sure put some in Gold, but as things stand, I'll come out the other end of a fall with what I have now, minus some food and ammo.

I'm certain I am not alone, we live payday to payday, I have a decent state retirement but in a collapse that will be gone , I suppose. ( wonder if I can get retirement $ converted to 7.62 )

No idea what would wait " on the other side " maybe Language lessons ?? Chinese ?? Spanish ?? Black Pajamas and a new job in a sock factory ?? Sally Struthers will be my new boss and I will learn Nike production from the inside, finally a marketable skill...

 

[jimdana1942]

If I get any wealth I'll sure put some in Gold, but as things stand, I'll come out the other end of a fall with what I have now, minus some food and ammo.

I'm certain I am not alone, we live payday to payday, I have a decent state retirement but in a collapse that will be gone , I suppose. ( wonder if I can get retirement $ converted to 7.62 )

No idea what would wait " on the other side " maybe Language lessons ?? Chinese ?? Spanish ?? Black Pajamas and a new job in a sock factory ?? Sally Struthers will be my new boss and I will learn Nike production from the inside, finally a marketable skill...

Your right. Keep everything in perspective, don't always go with the flow.

 

[Mjolnir]

One could sell the collected gold coins during hard times when it's $3,000 per oz and purchase land that no one else has the money to purchase... That's just one example.

I do believe that the gov't will make the possession of said coins illegal or at least make purchasing property with gold coins unlawful.

Perhaps a large bank would hold them as collateral with an agreement that you could not cash them in until the price doubles from the time they take possession of them. Just a thought...