Effect Of A Default On Precious Metals?

Can't tell you what precious metals will do since they are heavily manipulated. Unless you mean physical bullion exclusively, of course. And that makes sense given where this is posted. In fact, the stock market manipulative pricing is part of the problem of even trying to predict what would happen. But does it matter? Here's a thought:

What I CAN tell you is that if there is a major societal bump because of a default, a great investment is long-term shelf food, and bottled water. Food and water are much more important to survival than bullion.

A very big question is what country are you in, and would a default create a major breakdown in the globalization process.

Also, if the US defaults, and there is a mass panic sell off of Dollars globally, then physical bullion is a smart choice regardless of what happens to the price. The key is a default should destroy the value of the dollar. So if you are in assets that hold the same value as they did before the default, and everyone around you has assets that lost value, you still end up on top.

The US debt is irrelevant unless normalized by the GDP (which represents the ability to pay this debt).
There's no real difference between 17T$ debt or 170T$, if the debt/GDP is the same.

The economy can continue inflating the money supply (and therefore, the GDP as well) for a very long time, as long as it is a bounded fraction of the GDP.


One day the US will stop looking at the absolute debt level, as it doesn't really mean anything.