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 Replies: 73 / Views: 7,200 |
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Valued Member
United States
425 Posts |
Ed said... Quote: why would you choose the high-premium 1/10th oz. coins over the lower premium 1/2 and 1 oz. coins? And Mac said... Quote: And if there's a SHTF situation if it ever comes to that, these fractional gold is easier to barter and transport, just my opinion. Those 1/10th coins do let you make "change" in troubled times. Bartering with only 1 ounce gold could be difficult for those smaller essential purchases. I'd definitely keep a few fractionals in my "go" bag. Hello All, I have seen this many times but I challenge anyone to show this to be correct! GSR is about 60:1 right now. If there was a SHTF situation I would think that you would get farther with say three or four 1 oz.ASE's than one tiny 1/10th oz. AGE. I spent some time in Panama in the 1980's, If you got a pass to go into Panama City the first thing you would do Is cash in most of your money for singles, one dollar bills and separate them into stacks of ten or so, and then hide them all over your body,(stack for each pocket, in your boots, you get the idea). If you got robbed you hand them 10 singles and they ran away. If one of the "Local Law Enforcement" grabbed your buddy you start handing him singles until he let him go. If you handed them $5 or $10 it would be the same number of bills........ it would just cost you a lot more! Lets face it, ten 1 oz. ASE's or Morgans will get you through a road block faster than a half eagle Gold piece.......... and then there are all the gold coin fakes out now. |
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Pillar of the Community
United States
808 Posts |
In a SHTF scenario, there'll not be any meaningful GSR other than the individual's perception. Panama, Manila, you name it. Those abusing authority who can be bought will have their own ideas of what things are worth. Silver is a good option if dealing with local corruption. However, someone moving fast over wider distances might be better served by gold since the perception of greater value may offset the smaller volume offered. Ultimately, it's always a die roll when dealing with bad guys since honor is never a factor in their calculations.
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Valued Member
United States
425 Posts |
Very true Coinwatch! I was just saying that it seems that a 1/10th AGE is selling for about the same price as six ASE's right now, just under $200. And if the SHTF and paper money had no value..... I think I could get farther on the Silver than the Gold. But if the pay out was more in the $800 or $1600 range than maybe the one oz. or 1/2 oz. Gold would serve you better. |
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Pillar of the Community
United States
667 Posts |
There is more faked silver than fake gold. In fact fake silver coins are getting more common when dealing with anything from classic 90% to ASE's and Pandas. As far as PM's go if you are waiting for SHF thing to happen you don't have enough PM's to last that much longer in life. You going to need more than you can carry regardless if it is gold or silver. 1/10 AGE's can be bought without large premiums. In fact they can be bought for spot or even lower. You just have to buy from the right source. A dealers etc has to sell at a premium. I like them and in fact most of my gold is in 1/10's at less than what most people pay as a premium for 1 once. You just can't be in a hurry and look for private individuals looking to sell their gold. If I had $5,000 and was given one choice then I would keep it in the bank. Never speculate 100% on either or you will get burnt period. |
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Bedrock of the Community
United States
36745 Posts |
Gold is for wealth preservation, silver is for barter and trade.
Money in the bank at 1% interest with government admitted inflation of 3% (closer to 14% with food and energy included) makes a bank savings account a sure loser. You will watch your money evaporate over time.
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Valued Member
United States
425 Posts |
Quote: "If I had $5,000 and was given one choice then I would keep it in the bank. Never speculate 100% on either or you will get burnt period."
That sounds like very good advice! For me I always keep a little cash in a safe at home, just don't trust the banks for short term $ storage, mostly since now they are only offering .01%.
BUT! If the SHTF.......... I think It would be easier to do what our founding fathers did and take one oz. gold and silver coins that are well known and cut them into half dollars, quarter dollars, and yes even pieces of Eight! So what is the premium on a 1/10th AGE as compared to the premium on a 1 oz. divided by 8......and the extra value to the holder.
It may be true that there is more fake silver than gold........... but if you take a fake 1oz. gold you are out $1600! If it is silver what maybe $30? Also, all the fake gold that I have seen/known is real fake. But much of the fake silver is 40-70% silver,(or more), and still has value. Not to mention would be much easier to pass along if you had too.
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Pillar of the Community
United States
5830 Posts |
Lord!
My SHTF statement has changed the OP, lets go back to why we prefer one PM over the other.
I may change my mine in a few months or next year depending on how our economy stand, if the US can come out half way through this recession/deflation, PM may not be a good investment for most, strategy will need to be modified.
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Pillar of the Community
United States
3184 Posts |
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Pillar of the Community
Canada
3692 Posts |
macmaercury: You bring up a very good point, and that is, why are we buying one or the other in the first place? There are various reasons for such, so the OP, for the sake of continuance of discussion, should state what kind of reason we are dealing with here. Is it preservation of wealth, or insurance against corruption, or worst-case-scenarios, or speculation...., what? Depending on our reasons we will all have differing opinions. It reminds me of threads that ask, "how should I collect coins?" and everyone will give extremely differing opinions simply because we are all at different stages of collecting. Some for pleasure, some for investment, etc, therefore making every answer invalid. We should refocus where our intentions stand, and then we can give proper answers because the question is very vague. I mean, for some people, rare car parts is a wise investment simply because their knowledge lies there and not in PMs, and for others the best investments are in the stock market.
Edited by Libertad
07/14/2012 4:30 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
I'd buy both I'm with MK on this one. No reason to limit ourselves to a single metal when we can have both. Wanna buy a house or land? Use the gold. Wanna buy small items? Use the silver.  |
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Valued Member
Canada
135 Posts |
Sure you should by both etc.
For future profit? Silver all the way.
Silver should only go up, if it drops, it can only drop $30/ounce, in theory.
Gold is ~$1600/ounce. ($1600 inflated dollars.) Sure gold might go up, but it could drop a thousand an ounce too, very easily.
Silver has the chance to easily double, triple, quadruple or much much more, in value.
Gold does not have the same profit potential as silver,IMO.
In a SHTF situation, a bit of both would be good to have, gold is the "big bill" while silver is used for daily transactions.
If the S does HTF, don't count on gold being worth 53 times more then silver, I suspect they will be closer in value of say, 20 to 1 or so.
Gold is only worth $1600 USD in a fiat economy, the same economy that charges $500K+ for 100 year old houses.
In that reality gold should be valued, gold is only $1600 now because folks are competing to invest their money into a limited resource for protection. In a SHTF situtation, their money is worthless, so gold would be worth tens of thousands USD, or more, because the dollar would be worthless.
I put the "Real money" value of gold today at around the $700- $900/ounce range.
So yes, if the SHTF, you will easily lose half your "wealth" if you paid $1600USD /ounce for gold.
On the other hand, silver can be had for relative peanuts, and would prove to be more stable when transitioning to a SHTF situation.
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Valued Member
United States
89 Posts |
At this point, I'd pick silver. Currently the ratio is about 58:1. I'm accumulating silver and will trade for gold at 40:1. Rinse. Repeat.
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Pillar of the Community
United States
4008 Posts |
Quote:
Sure gold might go up, but it could drop a thousand an ounce too, very easily.
Possible but extremely unlikely. If you look at the economic fundamentals that support the US dollar (or any fiat currency for that matter), there would have to be an amazingly strong move in the US economy, financial management, politics, etc. This is pretty much a comatose economy, so a change as radical as this is very unlikely. Gold could drop some in price, though, even under the current crummy economic conditions. We have seen a number of price drops down to around $1520 or so over the past few months. There always seems to be very strong support for gold at that price, though, so moving it below that would indicate a strong US dollar / bond rally. |
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Valued Member
Canada
135 Posts |
Yes, a dramatic drop in gold would hopefully be triggered by a good economy.
I remember in the mid to late 1990s, you could have an ounce of gold for less then $300.
With a good economy comes competition, and a variety of ways to spend money.
Gold does have a limited use in industry, but it's not much of a commodity.
In a modern industrial area, things like Platinum could possibly be more resistant to economy swings, then in the past.
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Pillar of the Community
United States
4008 Posts |
Quote:
Gold does have a limited use in industry, but it's not much of a commodity. Those who wish to denigrate gold and those who buy it often refer to gold as a commodity. We should ask such people "What other mere commodity is stored in bank vaults?". Answer: none. Gold is stored in bank vaults because it has been MONEY for more than 4,000 years. That is a record that no paper currency can match, especially those that are not backed by anything but the promises of politicians... and we all know what those are generally worth.  |
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Replies: 73 / Views: 7,200 |
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Posted 07/14/2012 01:44 am
