Thoughts about hording Precious Metals...

What makes you think they won't be paid?

What are we going to pay them with?

People who don't have jobs, don't pay much in the way of income, property or sales taxes. just the opposite, in fact. Unemployment, Medicaid, SSI, foreclosures, bankruptcies,will skyrocket even more than it has in the recent "recession", which was tremendous.

Detroit pays whats left of their EMS, fire dept and Cops, with "magic money", which is also has coming to an end, as one city is $18 billion in the hole.

Perhaps I'm wrong, when I think economic collapse, is a pretty big deal. Others seem to think it will just be a minor bump in the road.

I'd have to think twice about shooting looters - for free, when my own family is starving.

exactly. North Korea starves a big portion of the population for lack of money, but has plenty of money to pay, feed, and clothe the forces that keep the exalted leaders in power.

I read a story a man told of living in a small town that was taken over by the military in the Middle East. One man he spoke of in this town horded gold coins and then finally traded some for food as it got very scarse. The man he traded with brought a group of men to his home and murdered his entire family for the rest of the gold coins. The military went from house to house taking all the food. The people who had little gold chains, wedding rings and delicate bracelets were able to trade for food without problems. He said he and his family lived off soup made of wild greens, nettles and scraps of any meat they could get from rodents mainly. He spoke of the way of survival there was to know about the natural resources around you and stashing food safely, well hidden and not to tell anyone. Everyone had weapons stashed, those who got caught were simply killed. The most valuable resource any of us have is our knowledge first and the ability to prepare and follow simple survival plans. To invest in gold is a choice which has made many people rich in the past. I think food and the ability to get it, grow it, preserve it and stash it etc.....means more in a catastrophe though.

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Romy "Island Girl"
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Good chance they would be paid in food. The government has the resources to control the food supply. If the government as it exists now collapses (and there's no reason to believe an economic collapse would necessarily mean a government collapse) many of the police and military would probably "be their own bosses" and pay themselves since they have the equipment, training, and mindset to exert power over others.

Those who control the food will control the people

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Where will the food come from and what about utilities, medical care, housing, etc?

So, in other words, anarchy.

The stock market is up 200% since 2009, while gold is up 19%, in that same period.

Both values are based on perceptions and nothing more.

I feel sorry for those that cashed their 401Ks - at the bottom and went for the "cant miss" investment of gold.

I think that the real value in PM comes after the dust settles in a SHTF situation. Food and goods and knowledge can get you through SHTF (if you are lucky) but after things reach some sort of stability there will be a need for money rather than barter. This is where the PM comes in- people will always place value on metals and stones, they have all through history so I don't doubt that it will remain so. If you manage to survive the rough and tumble years and save your gold and silver until things calm down then you will be one of the few that actually have MONEY.

I can't say that I feel sorry for someone doing something that dumb. The amount of data to show you can't time the markets is staggering and convincing to anyone who cares to look. Dollar cost averaging in a diverse portfolio is the way to go. No big jumps into or out of any particular sector. If you really believe that now is the time to jump into big caps, PM, or what ever, you increase your weighting in that sector by a few percentage points. Like if your balanced portfolio has 5% PM and you want to load up for the coming inflation, you increase your weighting to ~8%.

That all or nothing stuff is for people who want to be poor. Even if they are right 10 times in a row, on the 11th time when they are wrong they go bust. Anyone can time the market once or twice. No one does it reliably and regularly.

Same places they come from now...economic collapse doesn't mean everything just completely stops.

Not at all. A police state is the opposite end of the spectrum from anarchy.

There might be some pockets of anarchy, but I imagine most places where there is a power void it will be filled quite quickly.

Gold down to $1,259.00 this morning dropped about 50 in 3 days , My chickens are laying at 100 % daily . winner winner chicken dinner !

Sorry but you are talking paper assets ,if i'm reading right .If you don't hold it you don't own it .

And should things go bad folks with lots of goods ,should the need arise to will be stuck in place or flee with what they can carry .So good luck with all your supply's in hard to transport goods

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and the first time you pull gold out you'll take a bullet while they take your gold

Some folks didn't live this long by being stupid . Even meeting folks to buy on a craigslist ad one should take inconspicuous precautions

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See, yours is an all or nothing strategy that had failed almost everyone. I hold gold and silver coin as a hedge against hyper inflation. I hold common stocks in case things turn out pretty much as normal over the last 100 years. I hold preferred stock to have a steady income in case things just percolate along not doing great but not doing SHTF terrible. I hold food, tools, guns, energy, and land because I use them every day and they will come in real handy in case of TEOTWAWKI. I'm building a bunker...err..storm cellar in case of severe weather or I need a place to dodge lead.

Diversification. I have my opinions on what is coming down the road, but I don't know if I'm right or if I'm right, when I'll be right. Everything I'm doing has saved some folks at one time or another and failed others at different times. So as much as practical, I prepare for a wide range of futures.

I still have lots of work to go before I'm really well prepared, but I keep working at it. This month's chore is a half mile of fencing so that I have a place to grow food secure from 4 legged thieves and another area to grow 4 legged food.

Well said, DEKE01. All or nothing is rarely the way to go with anything in life. Usually the best option is some combination of different alternatives.

In REAL hard times gold, silver and gems aren't worth much. After all you can't eat them or build a shelter from them.

In the past 12 months or so I've been converting my "money" to things which will have worth in such times. Ever thought how much something as simple as bicycle parts will bring if gas in impossible to get?

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Remember, when seconds count. . .
the police are just MINUTES away!

Congress has no power to appropriate this money as an act of charity. Every member upon this floor knows it. . .Davy Crockett

When I was a teen in the late 70s, a financial planner, author, named Howard Ruff made an impression on me. He advocated a year's store of food and PM as a hedge against hyper inflation. No great coincidence that he is a Mormon. He has taken a lot of heat over the years because he was wrong - at least as far as timing the financial collapse of the US. His basic premise was that the US gov't was going to spend us into financial ruin. That was $10+ trillion debt dollars ago.

I still think he will be proven correct, but it might be another $10 or $20 trillion in deficit spending till he is right. Or maybe, just maybe, another Reagan will rise out of our current economic mess, maybe Obama and Carter will have that in common. Maybe this time when the Repubs get power they will get serious about fixing the tax system, reining in runaway spending, and limiting the power of gov't.

But probably not so I'll keep working on my fence.

If one has lots of money it is good to have paper assets if they understand the times we are in and the risk . Me I got land paid for food for a while shop ,tools plenty lead . And in a real crash I know moving fast may be a need . I don't plan on going anywhere . At present I have a bit of silver in hand I doubt I will ever spend it as i gave a few pounds away a while back . Myself I don't need a wide range of futures I want what I own in hand not someone else's .This may not work for everyone .So if the Gov confiscates folks 401 and bank account good luck ,they have had plenty of time to move their goods already .

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