Owning Precious Metals One Man's Observations
August 17, 2012
Thank you Holly!
Finally, at least for me, to see some tell it like it really will be in regards to gold and silver and I am a recovering 'pro gold/silver' advocate. Not that there's anything wrong with the metals, but I had to ask the very thing that you're talking about, (see note for Gold Demand Slips to Lowest in Over 2 Years) the reality of when the shtf.
I'll start by saying that in a world where all things would be flowing as much in the norm as possible, the metals would be a valuable asset. However, it's not the world we live in.
The vast majority of the population is "still" unaware of the value of gold and silver. Many do not even recognize it as a form of money. When the shtf the majority of people will "still" value paper money!
So much more to your point, if you actually have tradeable goods you will become the 'plentiful' with the true means for survival. As you said, you can't 'eat' nor can you shoot, bury (seeds) or wear (for warmth) gold or silver.
Additionally, I say this, I think over the last 2 plus years, the proof has been demonstrated that those who control the price of such metals, have absolute control - meaning - those prices will not go up without them allowing it so.
To all those who sell it by promoting 'a soon to be sky high price, so buy now!' are either stupid, ignorant, or evil. Perhaps all three. In order for this to be profitable, you would have to buy now and then sell it when it goes up - and do so 'before all crashes'. If you keep it, you just lost a bunch of money! It would be at least a generation for rebuilding to see it have monetary exchange value, so what are you going to do hold on to it til then?
And then back to your point, even if people do trade for gold or silver, the value is not going to be what was last posted, certainly not what it peaked at and most likely not even close to where it was when purchased - you may well find that for a 5 gallon jug of water it cost 'one' silver ounce coin, or worse yet a gold coin!
Investing in food, supplies and yes - ammo, will be of great value - think of this, knifes, axes, saws, hammers, screwdrivers, nails, screws, lumber, shovels, clean bottles, silverware, pots and pans, blankets, - I could go on but you already know, these are items of value!
People are not going to sell those things for stuff they can't use 'now'. This is not guessing, this comes from an education and practice in human behavior. Need proof? Just look at videos of riots and looting and see what people steal that they think is of value. Ever see them walking out with gold and silver?
P.S. I think it's courageous to have posted what you said. Metals dealers might be offended and I know you know many - so good going!