Coin Community Family of Web Sites
Like us on Facebook! Subscribe to our Youtube Channel! Check out our Twitter! Check out our Pinterest!
Username:
Password:
Save Password
Forgot your Password?


Welcome Guest! Need help? Got a question? Inherit some coins?
Our coin forum is completely free! Register Now!

The Importance Of Physical Assets

First Page | Previous Page
Showing last 15 replies.
 
To participate in the forum you must log in or register.
Author Previous TopicReplies: 72 / Views: 4,417Next Topic
Page: of 5
Pillar of the Community
United States
2089 Posts
 Posted 04/06/2022  12:19 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply
You can sell your gold for 5x, and receive paper currency in return. But what if merchants of life's necessities no longer accept paper currency? Then you would be a fool to sell your gold, even for 10x, 25x, or a million times.
Have a look at Zimbabwe for instance. You think people were selling gold to get several trillion Zimbabwe dollars? No way.
Moderator
Learn More...
United States
112162 Posts
 Posted 04/06/2022  12:35 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
But what if merchants of life's necessities no longer accept paper currency?
If this happened in the USA or the World at Large, there would be much bigger problems on which to focus your concern.

If it ever came to that, it would not be gold in my stockpile.
Pillar of the Community
United States
4980 Posts
 Posted 04/06/2022  12:46 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply

Quote:
But what if merchants of life's necessities no longer accept paper currency?


When the SHTF, your gold and silver will be meaningless. The things that matter are food, water, shelter, heat and protection. You would be better off stockpiling canned goods rather than gold. You can't eat your gold and I doubt anyone will trade their food for your PM.

Precious metals are good as a hedge against inflation, as a way to hide cash from the government and can be used as a way to get out of the country with lots of value in a small package. But if the world goes to pot, you are better off living off the grid with a few years stockpile of food rather than gold. Now if you want to get out of the country quick, its a lot easier to hightail it out with a few ounces of gold rather than 100K in cash. Just saying
Pillar of the Community
United States
2089 Posts
 Posted 04/06/2022  3:32 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply

Quote:
When the SHTF, your gold and silver will be meaningless. The things that matter are food, water, shelter, heat and protection. You would be better off stockpiling canned goods rather than gold. You can't eat your gold and I doubt anyone will trade their food for your PM.


Perhaps.
But when SHTF in Venezuela, euros and dollars together with small gold nuggets were "money".

https://www.bloomberg.com/news/arti...als-haircuts
Pillar of the Community
United States
4980 Posts
 Posted 04/06/2022  3:43 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply

Quote:
Perhaps.
But when SHTF in Venezuela, euros and dollars together with small gold nuggets were "money".

https://www.bloomberg.com/news/arti...als-haircuts


There is a big difference between economic collapse and SHTF. In one you have a functioning society and your money has no value. This has happened in many countries including Zimbabwe, Germany, Venezuela, etc.

In cases like that you use what ever currency you can get, right now in Russia, the black market is trading Rubles for hard currency (USD/Euro from what I read) and the ogliarchs are buying precious metals as a hedge against hyper inflation. Like I posted in my original post, buying PM to counteract inflation is a good use of PM's.

What your article posted is what one would expect, you trade your worthless currency for hard currency that you can use. If economic collapse would happen to the US, we would be more in a SHTF scenario. In that case, the whole world is probably on the cuspe of breaking, the USD and EURO are the defacto currencies of trade, what currency are you going to trade it to? One would probably go back to a barter society. Remember you have to somehow pay the ones mining gold/silver/etc.. What are you going to barter to get it?
Valued Member
United States
452 Posts
 Posted 04/06/2022  4:26 pm  Show Profile   Bookmark this reply Add jaxenro to your friends list Get a Link to this Reply
Edited by jaxenro
04/06/2022 4:37 pm
Valued Member
United States
452 Posts
 Posted 04/06/2022  4:30 pm  Show Profile   Bookmark this reply Add jaxenro to your friends list Get a Link to this Reply

Quote:

So how does China squirrel away all this gold without the world noticing?


The world sees what it wants to see


https://www.google.com/amp/s/moneyw...na-own%3famp

(This isn't new analysis by the way. Several serious analysts have been saying this for years if you actually look for it.)

"Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing had happened." Winston Churchill
Edited by jaxenro
04/06/2022 4:39 pm
Pillar of the Community
United States
4980 Posts
 Posted 04/06/2022  4:58 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
https://asiatimes.com/2022/04/russi...ely-to-last/

Of course, attaching the ruble to a gold standard comes with certain "rules of the game" that Russia will have to abide by. It should be willing to exchange gold for rubles with anyone who wants to do so.

Buy some rubles and try to get gold.
Edited by hfjacinto
04/06/2022 4:59 pm
Pillar of the Community
United States
2089 Posts
 Posted 04/06/2022  5:11 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply
I think everyone can agree on the fact that we do not know 100% certain what will happen in the future.
Therefore, a (small) allocation to physical gold and silver seems prudent.
Moderator
Learn More...
United States
112162 Posts
 Posted 04/06/2022  5:12 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
I think everyone can agree on the fact that we do not know 100% certain what will happen in the future.
Valued Member
United States
452 Posts
 Posted 04/06/2022  5:50 pm  Show Profile   Bookmark this reply Add jaxenro to your friends list Get a Link to this Reply
I don't think they have created a gold backed Ruble just a two pronged system. They require purchases to be made in Rubles and link the official exchange rate to gold. They are not saying they will trade gold for Rubles but will accept gold in exchange for oil

It's a way to peg the Ruble to gold without creating a gold backed currency. Germany holds a lot of gold Russia has oil and gas I think they want a barter
Edited by jaxenro
04/06/2022 5:51 pm
Valued Member
United States
87 Posts
 Posted 04/07/2022  02:05 am  Show Profile   Bookmark this reply Add glenmorenee to your friends list Get a Link to this Reply
One Chinese official yelling at another Chinese official, "We got twice the gold as White Devil so why still 6 yuan to 1 devil dollar?"

Most of the time a slice of bologna is just a slice of bologna.
Valued Member
United States
452 Posts
 Posted 04/07/2022  06:26 am  Show Profile   Bookmark this reply Add jaxenro to your friends list Get a Link to this Reply

Quote:
One Chinese official yelling at another Chinese official, "We got twice the gold as White Devil so why still 6 yuan to 1 devil dollar?"

Most of the time a slice of bologna is just a slice of bologna.


as long as they are sitting on 3 trillion in US bonds nothing will happen quickly they need to slowly divest. the one advantage these countries have is they don't ping pong their government back and forth so they can plan for the long term. you don't think Putin just thought up this strategy in response to US sanctions do you? This was wargamed out long before and probably in consultation with China. Think of it as a trial baloon

a lot of other countries are sitting up and taking notice not just China and Russia. no one sanctioned the US or kicked them out of the world banking system for invading Iraq. I am not disucssing if one was right and one wrong just a lot of countries are realizing with their reserve currency being USD their control of their economic destiny means following the dictates of US policy and no most countries don't like that, even if they agree with the policy.

the only viable alternative I see at this point is pegging exchange to a different standard even if it isn't "backed" as we know the term. maybe it wil be a basket of currencies, or some sort of commodity linking, althogh I think gold is in play

the only thing that I can definitely predict is over the next few years things are going to change and the USD being the worlds reserve is going to come under increasing strain

Valued Member
United States
452 Posts
 Posted 04/11/2022  2:58 pm  Show Profile   Bookmark this reply Add jaxenro to your friends list Get a Link to this Reply

Quote:
Of course, attaching the ruble to a gold standard comes with certain "rules of the game" that Russia will have to abide by. It should be willing to exchange gold for rubles with anyone who wants to do so.


They actually set up what I would call a "reverse" peg. No they wont redeem Rubles for gold but will sell rubles for 5000/gram

Now what moron what want to buy Rubles? Could it be the ones that want to buy Russian gas and oil (you know like most of the EU) and will only be allowed to pay in rubles?

So they use sanction exempt USD (EU energy purchases are sanction exempt) to buy gold and transport to a Russian bank to convert to Rubles. Win win for everyone.

I think more and more currencies are going to be backed by a basket of commodities including gold and oil
Pillar of the Community
Canada
2641 Posts
 Posted 04/11/2022  3:17 pm  Show Profile   Check Wade's eBay Listings Bookmark this reply Add Wade to your friends list Get a Link to this Reply
societies have been cycling through "fiat" for centuries, once it hits a tipping point a new world power/currency will take over as the measuring stick.
we're very close to the end of another cycle, and as history repeats itself, I doubt we will learn anything this time around.

personally the only metals I invest in are lead and brass (and gunpowder)

still, pure copper preferred over paper

Coin Collecting... "I'm in it for the money"
Edited by Wade
04/11/2022 3:19 pm
Page: of 5
Previous TopicReplies: 72 / Views: 4,417Next Topic  
First Page | Previous Page
Showing last 15 replies.
 
To participate in the forum you must log in or register.





Disclaimer: While a tremendous amount of effort goes into ensuring the accuracy of the information contained in this site, Coin Community assumes no liability for errors. Copyright 2005 - 2022 Coin Community Family- all rights reserved worldwide. Use of any images or content on this website without prior written permission of Coin Community or the original lender is strictly prohibited.
Contact Us  |  Advertise Here  |  Privacy Policy / Terms of Use

Coin Community Forum © 2005 - 2022 Coin Community Forums
It took 0.42 seconds to rattle this change. Powered By: