Wonder why the Gold/Silver Rush is happening?

[thatwhichisnt]

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

You don't trade with gold bars.

I will say this again, as I have had many times, silver is a better investment then gold. I believe it will have better percentage gains than gold. Also, it is tied to a smaller amount, which makes it easier to purchase items.

Precious metals, in large amounts, are a store of wealth and an investment, not for barter.Buy ounces, and half ounces, of silver for that.

My prediction:
Silver will reach an all time, non inflation adjusted, high of $60 due to JPM having to back up all their shorts. This could be one of the biggest commodity squeezes in history.
Gold will reach $2,000 an ounce by year end.

 

[thatwhichisnt]

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...

They could. See: Great Depression

 

[ejt1469]

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.

A home has value, as any asset, based on the benefits you receive from it.

i.e. Home value: relatively safe place to sleep, store items, protection from the elements, etc.

Car value: relatively cheap, safe, and fast transportation.

Question is: what are you willing to barter for those benefits?

The dollar is simply a means to make bartering easy and efficient.

 

[thatwhichisnt]

A home has value, as any asset, based on the benefits you receive from it.

i.e. Home value: relatively safe place to sleep, store items, protection from the elements, etc.

Car value: relatively cheap, safe, and fast transportation.

Question is: what are you willing to barter for those benefits?

The dollar is simply a means to make bartering easy and efficient.

Everything is prices in dollars, from trade between countries to gas. Banks use it in their reserves, and so do countries. When people stop to lose faith in the dollar, they will dump them. More dollars in the system = less individual purchasing power, hence inflation. When that starts happening, and we are quickly approaching that point, its like a snowball. Once on country starts, one more will follow, then another, and so on till the dollar will become fancy wallpaper.

Then you say, oh you will just convert your dollars to something to real value. Well, if people dont want dollars because they are dumping them, what will you get for the cash you have? Your 401k? Checking account? Savings account? If no one wants them, how can you buy what you need? Oil is sold around the world using dollars. If they change to a basket of currencies, as OPEC countries want to/and will do, the price of gas will soar here. That means everything you buy will go up in price. How will you buy food when no stores want US dollars? Gas? Ammo? You can't. Which is why it is expedient to turn your dollars into something that you can purchase that stuff with.

The interest rates will rise. Prices will rise.

The only think left to invest in are tangibles. Buying food and other essentials right now, why the dollar still has some value left. The rest you need to turn into real money (precious metals).

 

[thatwhichisnt]

A home has value, as any asset, based on the benefits you receive from it.

i.e. Home value: relatively safe place to sleep, store items, protection from the elements, etc.

Car value: relatively cheap, safe, and fast transportation.

Question is: what are you willing to barter for those benefits?

The dollar is simply a means to make bartering easy and efficient.

That is true. Currencies main use is as a medium of exchange. If people lose faith in that medium, in a fast fashion due to a flooding in the market as people diversify out of it, then how will you use trade using it?

 

[pawpaw131]

I can see each of your arguments, but precious metals scare the hell out of me, especially at today's prices. I still remember the Hunt brothers from Texas-oil millionaires. In the 1970's they too, bought silver as a hedge against inflation, tried to corner the market. "Big Bros" stepped in, prices started falling, and the brothers went belly up. The price of silver dropped 50% on March 27, 1980.

 

[thatwhichisnt]

I can see each of your arguments, but precious metals scare the hell out of me, especially at today's prices. I still remember the Hunt brothers from Texas-oil millionaires. In the 1970's they too, bought silver as a hedge against inflation, tried to corner the market. "Big Bros" stepped in, prices started falling, and the brothers went belly up. The price of silver dropped 50% on March 27, 1980.

Our monetary policy didn't take advice from the Weimar republic then. That inflation could be traced back to a lot of places, such as the dissolution of bretton woods. This is a totally different scenario

 

[Old_Demon]

I can see each of your arguments, but precious metals scare the hell out of me, especially at today's prices. I still remember the Hunt brothers from Texas-oil millionaires. In the 1970's they too, bought silver as a hedge against inflation, tried to corner the market. "Big Bros" stepped in, prices started falling, and the brothers went belly up. The price of silver dropped 50% on March 27, 1980.

Actually, as I remember it they were trying to corner and control the market for their profit. Completely different now, as stated above.