Why Should I Invest In Gold And Silver?

like one should spend dollars and not save them but why silver and gold in particular over other material assets?

Well when SHTF does happen and America becomes a third world country for several decades (I don't understand why people just assume we are going to recover in the matter of days, I think it'll be several years) your going to have spend all your gold and silver because all your currency will be worthless. Once your gold and silver dries up and you lost your job that you will probably never reclaim for some time, what are you going to do?

I think perhaps investing in land might be the best idea and start farming. One thing that people will always need, when nobody has jobs, when their currencies are worthless and it costs a thousand dollars to buy a loaf of bread is food. I think one should invest in production assets that allow you to produce things that people will need no matter in what condition the economy is in. If I buy 1000 oz of silver, when shtf i'll still have 1000 oz of silver and no production method to produce more and will eventually have to spend it because i'll have no job to buy food and will most likely not have the ability to buy more silver and gold because i'll have no job and will be to worried about buying other things like food, oil, toilet paper, things that I actually need and will most likely not have money just sitting around to invest in.



yay food

I think investing in production assets is the best way to go so that way I can get a real return on my investment. If I bought a cow and it had a baby I would get a real return (another cow) whose value could go up and down based off of how much our currency is actually worth, but at the end of the day I have another cow no matter what, and a way to produce more if I needed to spend it.

I think simply stockpile up on food is a bad idea as food eventually goes bad, and one should invest in ways to produce food.

We would all profit from being gentlemen farmers or ranchers during an economic apocalypse. Those are perhaps the most predictable among a slew of still potentially risky professions that might possibly see one through to what people will come to view as civilization and stability- assuming the doomsayers vision of the future comes to pass. If I were younger and healtheir man, and had the know-how to succeed in such a venture, it's where I would be today.

One other thing: In preparing for TEOTWAWKI, the accumulation of silver and gold should be miles down the to-do list.

If you go back and read many of the archived posts,many of us have said all along that survival hoarding should be first! You need a supply of food(many of the freeze-dried kinds have a 20-25 year shelf-life)no debt,water,firearms and ammo and whatever you need to survive,THEN look at precious metals as a way to preserve your wealth against the currency collapse. PM's are a strategy for having something coming out the other side of a collapse. Some folks are pouring all of their extra cash into PMs without taking care of the"survival" needs. Personally,I have no debt,an 18 month supply of food,4 guns with ammo(I probably need more ammo than I have)for protection and for food acquisition. I even have a hoard of toilet paper. I will keep a small amount of cash on hand for essentials AND 11 ozs. of gold and 160 ozs. of silver. So,I agree with your premise,gold and silver will probably not be all that useful in a currency collapse,but it will make your life a whole lot better when a new economy is established.

The key to survival is diversification. Land is a good idea, to be able to subsistence farm at the very least. If you have land, you need guns and ammunition to keep it, and to protect your livestock and crops. Ammunition will also carry serious weight as a barter item in a world gone crazy. A stash of PM is necessary to trade for things that you may not have, but a big stash could attract the wrong kind of attention too... TP is not as indispensable as you might think, but I wont go into details here!

greenprint: never heard of Monsanto?

SD, where would slavery and serfdom fit into your history of commodities?

The thing most people miss when talking about gold and silver when considering it against inflation/collapse/etc is;

You cannot value it in dollars!

Value it in any other commodity that has value regardless of the "dollar amount" slapped on to it.

Man hours worked
ounces of gold/silver
Gallons of milk
Population

Dollar values only tie together relative worth of two goods/services, so things that are traded in dollars should be compared with their dollar value stripped.

If a gallon of milk costs me $3.50
And an ounce of gold costs me $1,650
The value ratio is 471:1

If milk goes up to $6.50
and gold only increases just a bit to $1,700
the value ratio changes to 261:1

Even though gold went up in "price" it went down in value against Milk.


How about against population? This is one of my favorites.

Currently, there is roughly 7.02B people on the planet. Lets say there is 30,623 tonnes of gold above ground (taken from wikipedia)

In ounces that's around 984,552,305 ozt, or a ratio of 7.13/ozt Au : 1 person

Let say over the next 10 years we add 700M people, and 200M ounces troy of gold.

Now we are at a ratio of 6.5/ozt Au : 1 Person.

The value of gold just went up against the population. Doesn't matter what gold did in dollars.



This is all my opinions/thought's, please don't take it as 100% fact, confirm things for yourself, make your own investments.

For though, I'll be holding for quite some time.

Words to live by, CW. Comments like this have me thinking about the folks on the east coast about a month or so ago and whether or not any of them learned that being prepared for disaster is better than not being prepared for it. In many cases, these people didn't have squat for emergency supplies, so when they were told that real trouble was imminent, they raced to the stores and emptied the shelves. This is such typical behavior. I bet that these same people wait until their house is on fire before checking to see if they have a hose.