The sky is falling

[benjamen]

This is a nice perspective on the financial markets and precious metals:
http://www.kitco.com/ind/Hug/20120706.html

Are you the gift giver, collector, doomsayer, trader, or conservative?

Just because something in inevitable, that does not mean it is imminent.

 

[ancona]

Interestuing article. I like that he does not lump everyone together, and I like that he says what I think about "collectible" crap.

 

[rblong2us]

well that cheered me up

gold - check

stored in Zurich - check

extended hours trading platform - check

Company been around for a long time - eeerrr checkish

instant liquidity - check


exactly my arguments for using Bullionvault and Goldmoney
And i can trade gas for food if things go bad ( ok diesel )
as pm's will be usless but pretty ..........

 

[mike]

as pm's will be usless but pretty ..........

Why would PMs be useless? Suppose the guy whose eggs you want doesn't need your diesel? Then what do you do?

Real money will never be useless.

 

[rblong2us]

in the early stages of SHTF there will be little recognition of the underlying value of silver or gold by a poulation trained to believe this.
For a while paper fiats will work and if / when they fail, it will be a swap of needed things.

And youre going to have to be a bit brave to try and contact the local 'mr big' to work a deal.

Hence the stuff working as long as theres an internet, a trading platform, a demand and something in exchange, deliverable via the internet.

Some level of 'civilisation' and PM's work as a store of value.
SHTF and 'needs exchange' is where it happens.

Happy to be wrong though.

 

[mike]

Well, trading will only get you so far. That's why money, real money, is the greatest invention ever. Without out it, you might have to make 20 trades with 20 different people to finally get the dog that the guy with the eggs wants, and there's no guarantee that he'll still want the dog (or that someone else won't beat you to it) by the time you're done with all that swapping.

As long as there's an internet, as you said, you'll also be able to easily convince and educate people on the value of PMs. Sites like pricedingold.com will probably become very useful.

 

[benjamen]

Well, trading will only get you so far. That's why money, real money, is the greatest invention ever. Without out it, you might have to make 20 trades with 20 different people to finally get the dog that the guy with the eggs wants, and there's no guarantee that he'll still want the dog (or that someone else won't beat you to it) by the time you're done with all that swapping.

As long as there's an internet, as you said, you'll also be able to easily convince and educate people on the value of PMs. Sites like pricedingold.com will probably become very useful.

I think rblong2us is referring to a true SHTF situation where perhaps the power grid goes down, a revolution is happening, or some major natural disaster. In those rare instances the only thing that is valuable is something you can immediately use such as food, water, shelter, ammo, ect. Historically, when a true SHTF situation arises, this period where money is ignored lasts around six months. In these situations, assuming you survive, PMs are one of the best ways to transport your wealth through such a crisis, but only useful once the situation begins to calm down.

$.02

 

[rblong2us]

Exactly my thinking Benjamen.

Thank you for laying it out so simply.