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That can be said of anything.
Gold has the advantage of liquidity. In a pinch it can be sold quickly and easily at market value. Try that with a 5 gallon bucket of rice.
Depends on how hungry people are
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That can be said of anything.
Gold has the advantage of liquidity. In a pinch it can be sold quickly and easily at market value. Try that with a 5 gallon bucket of rice.
I meant during "normal" times.Depends on how hungry people are
Gold likely has been perceived as valuable because it is not entirely easy to obtain. Same could be said for 'precious stones' when at the end of the day they're just rocks, and only as valuable as how others perceive them.
Hence, gold in and of itself has no value, but because others choose to value it, it has value. Just like shiny rings at the jewelry store, some people pay tens of thousands of dollars, they're just rocks and metal.
I'm not trying to bash on folks who are really happy with their gold supply, I simply have never perceived it as valuable beyond what others may be willing to exchange for it, but at that point, I'd be stockpiling something in the hopes that someone else would desire that gold more than what I would desire from them, at that point, it would make more sense to put my effort into procuring what I want originally, rather than something I don't want in the hopes of exchanging it.
"Good Delivery Bars"
I'll leave this here:
It's more likely that we will have a huge financial crisis, the worst in history. Imagine the Great Depression but 10 times worse. People weren't living with no civilization in the 1930s. They still had government and stores and hospitals and restaurants and movie theaters, etc. But times were very hard, and they will probably be harder after the next big financial crisis. Or even after a smaller financial crisis.
Not really regarding precious stones. If you have time may I suggest you watch this video
If you don't have time to or aren't interested in watching the video the specifications for money can be summed up below
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Gems or precious stones don't meet the fungible and uniform requirements of money. Diamonds for example have too many variations in weight, cut, color, and clarity to be fungible and uniform. You would have to be a diamond expert to figure what each one is worth. Whereas gold bullion coins and bars as sold today are extremely uniform and fungible, as well as meeting all of the other specifications for money.
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If you are talking about practical value as something you can eat or use for clothing, that's correct. But it has tremendous value fulfilling the role of money as a means of exchange and storehouse of value, something that people have found gold to be valuable for for thousands of years. And it can be exchanged for something to eat or for clothing.
You seem to be considering only the most extreme "SHTF" post-apocalyptic scenario of a complete breakdown of civilization as the only possible scenario, where people are living as our ancestors did tens of thousands of years ago and bartering for everything. That's not what I'm talking about and that's not as likely a scenario as what I am talking about. It's more likely that we will have a huge financial crisis, the worst in history. Imagine the Great Depression but 10 times worse. People weren't living with no civilization in the 1930s. They still had government and stores and hospitals and restaurants and movie theaters, etc. But times were very hard, and they will probably be harder after the next big financial crisis. Or even after a smaller financial crisis. If you get sick are you going to go to the local hospital and try to barter some ammo to have your appendix removed? You can walk around trying to barter for everything but most people in the aftermath of a financial crisis are going to want the efficiency and convenience of money, rather than dragging around everything they own so they can barter.
And after the disaster caused by trusting in paper fiat currency, people are going to want to use real money.
When did the average Chinese suddenly have the money to buy gold? Most of those I know don't, and once converted, how would you use it as tender for anything? Get 10 dollars worth of gas and have a $100 gold coin...your change is ????Troubling news in the world of finance: Peter Schiff: China, Russia buying gold because 'they can read the writing on the wall'.
When did the average Chinese suddenly have the money to buy gold? Most of those I know don't, and once converted, how would you use it as tender for anything? Get 10 dollars worth of gas and have a $100 gold coin...your change is ????
Was there a lot of gold trading during the great depression?
... increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.
On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve's balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
FDR takes United States off gold standard | June 5, 1933 | HISTORY
The United States goes off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold.www.history.com
I was able to hoard some silver but not enough to live on. A few silver dollars and pre 64s mixed stuff. Gold??? some dental gold, jewelry, I figure bullets to those I know would surpass any metals! Firearms to select few? Food will be needed so it isn't part of any deals! I remember the Hunt brothers getting caught hoarding silver. Also Ted Binnion killed by girl friend and another friend had dump truck loads of silver taken out of hidden underground storage after they murdered him in Pahrump, Nevada. Maybe it went to his sister Becky who owns the Golden Nugget in Reno? Yep agree Silver is more affordable if you can find it? I know I saw a man's silver/Galenia mine in that area that was very rich. Don't know what it assayed at as lead and silver look much the same. That was in the early 70s, I'm sure the owner is long dead, and I have no recall of it's location other than southeast of where he lived. Where they found gold, and it played out, next step was a search silver followed. Many times found around the same areas and a second boom occurred. Yes, I too got two of those crafted ones. A Norinco that was new when shortly after Clinton stopped imports of firearms and ammo from that country, and a Russian that was one of the first ones that was surplus but in excellent condition. Not the banged up ones that are finding their way into the market now. They have at least tripled in value, and because of the condition likely higher than that.I'm more of a silver bug, but a little diversity never hurt. Mostly because silver just seems like it's harder to refine and as a result less places produce it. Also the industry really seems to use it.
I'm hoping a few big producers of silver have issues then I can sell and retire.
My best investments to date are the metals crafted into firearms. Especially the one I got from Russia.
Although the 401k isn't doing bad.
And I have to admit I'm obsessed with shiny metal things... Brass gets me high.
I have a couple of dollar bills that are silver certificates!The US was on the gold standard in the early years of the Great Depression. Paper currency wasn't just fiat currency, it was a claim check that could be redeemed for real money - gold or silver coins- at any time. So people used paper money backed by gold or silver coins, and 90% silver coins, unlike the fiat paper currency and (worthless) cupro-nickel coins we use today.
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On April 5, 1933 President FD Roosevelt signed Executive Order 6102, taking the US off of the gold standard, banning private ownership of gold, and ordering citizens to surrender their gold bullion, gold coins, and gold certificates to the government, in exchange for paper currency.
In 1974 President Ford signed legislation that restored the ability of Americans to own gold bullion.
90% or more of US citizens never think about a financial crisis of major proportions. They go along all their lives thinking of paper money as the only money. They have no personal history to teach them any differently. 40% of them don't have $500 cash to tide them over during a personal emergency, so why would they worry about gold or any other long term consideration? Owning precious metals is like an insurance policy. Any reasonable person who owns it hopes to never have to use it. They do hope that they or their heirs can get money back out of it if need be under whatever circumstances. Here I'm referring to private owners of PM, not traders or speculators who buy and sell regularly.
Actually it is the Chinese and Russian governments buying gold that Peter Schiff speaks of, I think. However, the Chinese do encourage their public to buy gold as well. It has to be kept in the government banks which is handy if they decide to confiscate.When did the average Chinese suddenly have the money to buy gold? Most of those I know don't, and once converted, how would you use it as tender for anything? Get 10 dollars worth of gas and have a $100 gold coin...your change is ????
Just opinion and NOT financial advice.Troubling news in the world of finance: Peter Schiff: China, Russia buying gold because 'they can read the writing on the wall'.