survival question

[MissJ]

so hypothetically I could buy $250 worth of silver today (which I have actually hidden in my house).
The value would increase to at least double ($500) worth or more...
THe government lops off 3 zeros and now I suddenly only owe $230 on my house! woo hoo!
I pay the bank in silver and I still have $270 leftover and now I own my house free and clear!

Or better yet, I could pay them in pocket change because historically when governments devalue their currency they don't bother with coins, only paper money...I have at least $200 worth of nickels dimes and quarters...

Except for in reality the silver would probably be worth WAAAAY more than double today's value and no amount of money could buy the security needed to protect my house from the hordes of hungry, evicted, unemployed people...so I'd still be screwed....

 

[Just Jim]

so hypothetically I could buy $250 worth of silver today (which I have actually hidden in my house).
The value would increase to at least double ($500) worth or more...
THe government lops off 3 zeros and now I suddenly only owe $230 on my house! woo hoo!
I pay the bank in silver and I still have $270 leftover and now I own my house free and clear!

Or better yet, I could pay them in pocket change because historically when governments devalue their currency they don't bother with coins, only paper money...I have at least $200 worth of nickels dimes and quarters...

Except for in reality the silver would probably be worth WAAAAY more than double today's value and no amount of money could buy the security needed to protect my house from the hordes of hungry, evicted, unemployed people...so I'd still be screwed....

I am so confused. So are you saying when they knock off 3 zeros that the price of your house will go down or the value of your money will go down? If you have a $250000 house then they make $100 bills into tens won't it make it harder to pay for the house? Are they not devalueing money and not comodities?

Straighten me out now??

 

[MissJ]

I am so confused. So are you saying when they knock off 3 zeros that the price of your house will go down or the value of your money will go down? If you have a $250000 house then they make $100 bills into tens won't it make it harder to pay for the house? Are they not devalueing money and not comodities?

Straighten me out now??

I'm guessing that you're kidding...but I'll humor you anyways....I wouldn't be paying off my house in $100 bills...I'd be paying in silver which would hold its value (it would probably do much better than hold its value actually....)

So what I'm suggesting is that a normal person with a little planning could easily keep enough silver on hand to essentially make them RICH if the government lopped off 3 zeros...

 

[19 Adam]

So what I'm suggesting is that a normal person with a little planning could easily keep enough silver on hand to essentially make them RICH if the government lopped off 3 zeros...

I agree! You can not go wrong with investing in silver, or gold if you have the means, over $100 bills. If things get as bad as many here say your silver will not loose value. If you have a product that people need when things get bad, say food, fuel, or ammo, you will be able to trade for all the silver they have. You just have to have more than enough to take care of you and yours.

Many people became very rich during the depression by selling people what they needed.

 

[Just Jim]

Just saying, I was there when silver got near $40 the first time. When the bottom fell out it got down to about $6. Might I suggest that if yall invest in silver you watch closely because what goes up will come down.

So explain it to me again how you will be rich if you own silver when inflation takes over?? Silver is up to $41+ this morning but you don't make a profit till it sells. If you sell it and don't spend the money imediately then you are going to lose your profit if inflation keeps going up.

If you own a gun you bought for $400 are you going to sell it for dollars when they are worthless and going lower? The value of your commodity (the gun) will go up as the dollar goes down. When the zeros come off they are stealing your money and all the work it took to get it. Are you willing to sell your stuff for that worthless money, will others sell their stuff for dollars that are shrinking?

I really am trying to understand how this is going to work out. Enighten me.

jj

 

[Just Jim]

charles hugh smith-Weblog and Essays

 

[MissJ]

Just saying, I was there when silver got near $40 the first time. When the bottom fell out it got down to about $6. Might I suggest that if yall invest in silver you watch closely because what goes up will come down.

So explain it to me again how you will be rich if you own silver when inflation takes over?? Silver is up to $41+ this morning but you don't make a profit till it sells. If you sell it and don't spend the money imediately then you are going to lose your profit if inflation keeps going up.

If you own a gun you bought for $400 are you going to sell it for dollars when they are worthless and going lower? The value of your commodity (the gun) will go up as the dollar goes down. When the zeros come off they are stealing your money and all the work it took to get it. Are you willing to sell your stuff for that worthless money, will others sell their stuff for dollars that are shrinking?

I really am trying to understand how this is going to work out. Enighten me.

jj

well, I"m mostly just joking around because if the US gov't actually lopped 3 zeros off our currency I predict that the world would be SOOOO screwed up that owning property deeds or silver or gold for that matter would be basically meaningless. Beans, bullets and bandaids is all that would matter for a while...like a generation...

But in THEORY....if all of a sudden I only owed $230 on my house and I have $500 in real silver...not silver stocks, not silver IRA notes, actual physical shiny stuff in my greasy little palms....and I didn't sell it before the dollar crash, but merely paid my bank note off with an actual lump of precious metal. Essentially I take a lump of silver down to the bank and "buy" my property deed with a hunk of metal. I don't ever put the silver into any sort of a "market" where it becomes devalued.

It's a pipe dream of course. My dad and both grandpas and 2 uncles lost their arses in the sunshine and bunker hill silver mines in North Idaho in the 1970's Our family is acutely aware of the "fleeting" value of precious metals....but historically they do much better than fiat currency....

But in general your point is well taken. It would never really work out this way. the little guy always gets screwed. the bank will get theirs....

 

[Grunwald]

Just clarify some things, as I think there are some people who seem to be confused with regard to what would happen if the government lopped off some zeroes of the currency. If you owned $10,000 worth of silver before the devaluation, and the government chopped of 3 zeroes, then your silver would be worth $10 right after the zeros come off. All the prices would get adjusted, as would all the debt. There is no magic to it, it is simply an accounting procedure.

The benefit of holding silver or gold or bullets or firearms is usually prior to that moment. The government takes the action of revaluation of currency, because inflation has ravaged it so badly that prices are truly silly. Imagine having to pay $4.00 for a loaf of bread today, but next week it is up to $15.00 and week after that $35, and soon enough it is at $5,000. You trip to the grocery store that used to be $100 is now $120,000.
Things get really out of whack, and any savings you might have had in the bank become worthless pretty quickly. Your debts however are disappearing just as fast.

Precious metals should hold their real value, so to a casual observer they go up in price. If they go up in price in line with everything else, then there is no need to worry about a speculative bubble. However as people see their money trashed, more will pour into precious metals and this might cause a speculative price increases, that are far in excess to that of regular daily items.

 

[EZLivin]

It's a pipe dream of course. My dad and both grandpas and 2 uncles lost their arses in the sunshine and bunker hill silver mines in North Idaho in the 1970's

It may not be a pipe dream. We are at that point in the cycle where metals outperform fiat currencies (especially $US), and will likely do so for several more years (with corrections along the way of course). I do hope the old mines in the Silver Valley are successful in this phase. There appears to be a lot of silver still underground in the valley. Unfortunately the main hindrance to getting people back to work digging it up seems to be the insane anti-mining climate here in the US.

 

[Just Jim]

Today Change Week Ago Month Ago Year Ago
Gold $1,467.80 -$6.20 $1,433.10 $1,421.70 $1,161.00
Silver $40.65 -$0.01 $38.53 $35.98 $18.37
Platinum $1,789.00 -$26.00 $1,784.50 $1,784.30 $1,726.60
Palladium $787.45 -$6.55 $782.60 $766.25 $512.60


Might want to ask yourself what is driving the price of silver

jj