The Importance Of Physical Assets

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.

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

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?

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

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.

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

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

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