Effect Of A Default On Precious Metals?

Although people are saying in the event of a default there would be a sharp decline in the value of the dollar which ought to push the price of PMs up.

Im going to guess Pm's will go down., maybe stocks too. A lot of people out of work will have to sell.

the gentleman from cali basically took my comment.

After the midterm election is probably as soon as you could expect a real longer term resolution on it. As long as the composition of Washington is the same expect the status quo of just going a few weeks/months at a time

I don't think that the world will flock to PMs RIGHT AWAY. People think it will skyrocket to the moon but I don't see people on the fence about silver and gold ready to press the button if there's a default; it's not even on their radar ready to happen. There are tons of monetary instruments that will get used first before the "barbaric relic" that is gold. Once people finally get that you can't spend money you don't have then it will sink in. Until then people are in the dark. I really hope there's no chaos because my PMs will be worthless to idiots, especially idiots in distress. Silver and gold will be seen as a "rich" thing, IMO, because that's the realm in which they reside. There's going to be scorn against gold IMO, and the majority (I'm guessing) of the public has never used silver as money so the transition will be slow. We'll see. I don't think there will be any wide-spread panic.

Of course these are guesses. I'm never without controversy and strong opinions but my mind always changes according to new information gathered. I really hope the American public gets through this safely and come out stronger.

You maybe right Yup but which ever way its goes, up or done if a default did happen , I am glad that I have my stash of silver and gold and not just a stack of paper money or worst, some digits on a computer screen that possibly could be worth pennies on the dollar or simply vanish.

Well I do have some cash as well lol,need to "try" and cover as many bases as possible.

Can't tell you what precious metals will do since they are heavily manipulated. Unless you mean physical bullion exclusively, of course. And that makes sense given where this is posted. In fact, the stock market manipulative pricing is part of the problem of even trying to predict what would happen. But does it matter? Here's a thought:

What I CAN tell you is that if there is a major societal bump because of a default, a great investment is long-term shelf food, and bottled water. Food and water are much more important to survival than bullion.

A very big question is what country are you in, and would a default create a major breakdown in the globalization process.

Also, if the US defaults, and there is a mass panic sell off of Dollars globally, then physical bullion is a smart choice regardless of what happens to the price. The key is a default should destroy the value of the dollar. So if you are in assets that hold the same value as they did before the default, and everyone around you has assets that lost value, you still end up on top.

The US debt is irrelevant unless normalized by the GDP (which represents the ability to pay this debt).
There's no real difference between 17T$ debt or 170T$, if the debt/GDP is the same.

The economy can continue inflating the money supply (and therefore, the GDP as well) for a very long time, as long as it is a bounded fraction of the GDP.


One day the US will stop looking at the absolute debt level, as it doesn't really mean anything.