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A Question If There's A Financial Meltdown.

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 Posted 12/17/2019  07:45 am Show Profile   Bookmark this topic Add Dan John Longano to your friends list Get a Link to this Message
One reason why we stack precious metals in case there's a major financial meltdown. If we sell our bars, we get money, but what if that money is no good. I know we might be able to use our junk silver, but only to those who know it's silver. Any thoughts?
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 Posted 12/17/2019  09:50 am  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
This is a very good question. I have also always wondered, for those who say 'silver will be $1000 per ounce', what one might be able to buy with that $1000?

A financial meltdown would be a very bad situation, whether you have silver or not.
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 Posted 12/17/2019  10:55 am  Show Profile   Bookmark this reply Add nemlas to your friends list Get a Link to this Reply
It would be best used to barter for food or other needed items.
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 Posted 12/17/2019  3:11 pm  Show Profile   Bookmark this reply Add srcliff to your friends list Get a Link to this Reply
If silver gets to $50 an oz I'm going on a nice vacation. If it gets to $1000 an oz I'm sealing the bunker.
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 Posted 12/17/2019  4:20 pm  Show Profile   Check Yokozuna's eBay Listings Bookmark this reply Add Yokozuna to your friends list Get a Link to this Reply
to the CCF!

I'm just talking here, but if the World economy were to collapse, the only a few items that would be worth anything would be necessities like food, water, clothing, shelter and weapons. While silver and gold seem to be a hedge against a turbulent monetary market, they are really useless. I wouldn't want to carry them around in a post apocalyptic environment and I don't think anyone else would either.

I watch a lot of "zombie" movies and no one ever wants to break into Fort Knox, they are always looking for canned goods and automatic weapons.
The first US coin motto was found on a 1792 half disme and read: "LIB (erty) PAR (ent) OF SCIENCE & INDUSTRY"


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 Posted 12/18/2019  04:35 am  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply

Quote:
While silver and gold seem to be a hedge against a turbulent monetary market, they are really useless.
History proves quite the opposite. Silver and gold have always had value throughout human history, to present.


Quote:
I watch a lot of "zombie" movies and no one ever wants to break into Fort Knox, they are always looking for canned goods and automatic weapons.
That's what's called "SHTF", not an economic collapse.
When I listen to LED ZEPPELIN...so do my neighbors...
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Edited by fistfulladirt
12/18/2019 04:38 am
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 Posted 12/18/2019  07:37 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
In case of an economic collapse one can use the large 100 ounce bars of silver to whack someone over the head and steal there food :)

Just kidding!

Silver and gold are good hedges against inflation but if the economy of the world turns to dirt, people will turn to barter, I'll trade you a blanket/clothes for food. I doubt many people will want silver/gold for food. They'll want something that they need. But we'll have many other problems because without money how do we get electricity, water and other utilities. Are you going to take your silver to the utility company and pay then or will you mail then silver?
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 Posted 12/18/2019  07:47 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
To further expand on the economic collapse. Cities will empty, think about the 25 million people around NYC, money is worthless and they are hungry they will go out west. They will overrrun all the rural populations, then you have Chicago, Atlanta, California. Without money these people will get in cars and drive up to 400 miles to get food.

In case of an enconomic collapse the government will try to stop the free fall even to the point of backing up money with precious metals, why are there still gold reserves in Fort Knox and West Point because when currency devalues You either prop it up through policy or through linkage to a precious metal.

The chances of total ruin are pretty small unless we enter into a war with another nuclear power like China or Russia. In case of nuclear war, we are screwed! Having precious metal will be meaningless as will all be dead.
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 Posted 12/18/2019  08:44 am  Show Profile   Bookmark this reply Add Circus to your friends list Get a Link to this Reply
First if there is a collapse, who will set the value of the PM's? all you have to do is look to the first collapse down in Venezuela in the 70's. Gold and silver were just about useless. Knew somebody that was with the USA government and was there the only things that were worth anything and the first question they would ask is. Do you have any ammo next was guns? If they would barter for food or gas with silver/gold they set the rates and it wasn't any of this cutting rounds or bars into smaller sections. And you took the chance of somebody sending thugs to take it from you. once it was know you had PM's to barter.

At the current guns show there are a lot of people selling copper rounds from 1/8 oz to 5 ounces. As this is what they claim will be the new barter currency. Well that is a crock the average person has neither the knowledge or equipment to smelt and convert copper into pipe or wire. You are better off stockpiling spool of wire and copper tube.
Edited by Circus
12/18/2019 08:46 am
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 Posted 12/18/2019  09:40 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
Venezuela is a good example of a currency collapse, the bolivar collapsed, so the people started using US dollars. If the US Dollar collapsed a lot of countries would be in trouble but we could get Euro's or Swiss Franc or GBP. Although the dollar collapsing would be an issue as many currencies are pegged to the dollar, but they could quickly switch to other currencies.
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 Posted 12/18/2019  12:22 pm  Show Profile   Bookmark this reply Add NDBirdman to your friends list Get a Link to this Reply

Quote:
in case there's a major financial meltdown

I'll be one of those with weapons (have quite a stockpile) taking food/water, PM won't be worth much if anything.
Edited by NDBirdman
12/18/2019 12:23 pm
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 Posted 12/18/2019  1:01 pm  Show Profile   Bookmark this reply Add KenKat to your friends list Get a Link to this Reply
There's an economic meltdown, where the rule of law collapses (zombie apocalypse) and there are "hard times" (Great Depression) where things are bad but people still follow laws, etc. Gold and silver are not much use in the first scenario but can be valuable in the second as they will maintain their value while other economic assets such as stocks, real estate, etc collapse. In the Great Depression, those who held some gold/silver and government bonds had something to turn to when times got bad. These could still be turned into cash since the economic system, while beaten down, was still intact.
Edited by KenKat
12/18/2019 1:02 pm
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 Posted 12/18/2019  1:51 pm  Show Profile   Bookmark this reply Add CitationSquirrel to your friends list Get a Link to this Reply
Good distinction KenKat. You make a very good point.
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 Posted 12/18/2019  2:58 pm  Show Profile   Check John K's eBay Listings Bookmark this reply Add John K to your friends list Get a Link to this Reply
My guess is that if you had a sack of silver marks in Germany during the early 1920s, you didn't go hungry. Collapse of paper money does not mean farmers are going to quit growing stuff. They just won't give you any for worthless 1,000,000 mark notes.

Lets hope there are always farmers!
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 Posted 12/18/2019  7:19 pm  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply
We've never been there, here in the US. Great guesses everyone!
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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 Posted 12/18/2019  9:14 pm  Show Profile   Bookmark this reply Add Sap to your friends list Get a Link to this Reply
Silver and gold have historically been used as stores of value simply because they are compact, compared to other valuable things. You can transport them easily and hide them easily, compared to an equivalent value of food, or land, or tools and weapons. They are also universally acceptable as valuable, as opposed to other compact, valuable items (like spices, gems, seashells and such) whose rarity can vary greatly depending on the local geography and proximity to the sources of those other rare things.

The use of silver and gold as a trade good isn't for a "zombie apocalypse" scenario where everybody's shooting, robbing and pillaging each other, it's for a post-apocalypse "new dark age" scenario - where governments have collapsed and technology has regressed, but everyone is nevertheless managing to peacefully coexist with each other in a generally civilized fashion. Only in such a world would having a large stockpile of rare metals be considered a "good thing".

And, for a personal opinion: in such a "new dark age", it won't be silver that'll become rare - it'll be aluminium. With no more cryolite to mine (since we'd mined it all by the mid 20th century), once we've forgotten how to make it for a couple hundred years, I doubt we'll ever be able to figure out how to make it again. Aluminium metal has lots of uses, being strong and lightweight; it's only cheap because it's so abundant. Someone owning a stash of it will probably find themselves in a more desirable position than someone owning silver, because anyone can go out and refine themselves some more silver.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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