5 reasons why Gold will unfortunately be worthless AFTER the collapse of the dollar.
Posted by ShrugInArgentina 10 years, 2 months ago to Economics
A few might be looking fowad to the price of gold reaching ten thousand dollars per ounce, but what will they be able to buy with those dollars?
I may trade two or three chicken eggs for a cup of rice or beans at that point, but I doubt that any of my neighbors will accept gold in exchange for anything to eat at that point.
If they will, I'll just cut off some of the links of the "manly" gold chain I wore in the &1980'.
I may trade two or three chicken eggs for a cup of rice or beans at that point, but I doubt that any of my neighbors will accept gold in exchange for anything to eat at that point.
If they will, I'll just cut off some of the links of the "manly" gold chain I wore in the &1980'.
You can keep your dimes.
If I have eggs I want bacon in exchange!
Fortuantely, my neighbos have hogs.
And I'm building a smokehouse.
Bottom line, if gold is worthless after a crash, then it's worthless now. There would be no reason to mine the quantities we do just for electronics, and jewelry. Governments wouldn't be buying it up.
But, lets take his 5 points
1) What will the value of gold be worth?
It'll start at about what the last know value was before it all fell in.
2) who's gonna mint gold coins?
There's plenty already in circulation. If you have gold/silver, you're management. If you don't, you're labor.
3) Currency?
We've been demanding a return to the gold standard for years. Who needs funny money.
4) Dollar is the current World Reserve currency.
It won't be then. Whoever decides to back their dollar with gold/silver will emerge as the new reserve. OR, we can just leave it gold/silver.
5) no manufacturing because no paychecks.
What? Just pay in gold and silver, or goods. It's not like employment and commerce began with the advent of checking accounts.
Gold I can put in my pocket. A chicken, not so much.
If someone has a something to trade, you might not have anything they need (food wise), but gold/silver are always exchangeable.
If you live in NYC and there is no food in the stores, and not likely to be for any time in the future, what good will any amount of gold or silver do you?
You are likely correct, in the city, only marauders will succeed. Until the run out of other peoples money (aka food). Good thing the entire US population doesn't live in cities.
City dwellers are dependent on gov't resources, either by welfare, or infrastructure to survive.
The question becomes, if gold/silver has no value, what does??? If nothing does, then it doesn't matter, curl up into a ball and die. There is nothing a city dweller, especially, can stock pile that would save them from such an event. Even bullets, won't save you for long. You can't eat bullets either. You can't take you 100 pounds of stored food and leave the city. you'd have a better chance take a pound of gold/silver with you and fleeing to a more civilized area, where your g/s might buy something.
So, if someone lives in the city, what should they do to preserve their wealth, and safety?
(well, perhaps one of them...)
Who will have the dollars to buy it?
And why should the price of gold "stabalize" at ten thousand dollars per ounce?
That might be the price someday..at 9 AM.
By noon it could be $15,000 per ounce.
And by sunset the lights might be going out...
For a long time.
I thought we were talking about after dollars exist? Sure not everyone will have gold to start out with, but they'll still like to have it.
No price is ever permanent, all that matters is how valuable it is to who you're trading with.
The lights go out..... and then someone buys the power plant and starts paying people in gold.
When the lights go out nobody will be paying anybody anything.
And gold won't be the most valuable metal.
And if you ever live near me, please be advised that I do accept fruit and nuts in exchange for eggs.
But not a dime.
What if you need an axe. I make ax's. If you offered me 20 bushels of Tomatos for the ax, it would do me no good if I cannot eat or trade them before they rot. G/S require no refrigeration. Bullets might have value, but they are a consumable also. G/S is a way of converting your excesses for future barter.
If you don't have G/S, there's always Prostitution for exchange - right?
I'm pretty sure when the SHTF, Prostitution will be a minimum wage occupation.
Human's will trade. Trade existed before civilization did, and in fact led to civilization. Money is only a facilitator of trade. Throughout history, gold has always proven to be the best and most accepted form of facilitator.
They also camt to the point (in the "old kingdom") that individuals "traded" their "most valuable possessions" (some made of gold) for a handful of grain.
And that was before they ate the children.
I think that anybody who is smart will know that smaller amounts would be much more practical like 1/10th OZ gold, and silver dollars, quarters and dimes for smaller trades.
A patriot I knew, once made a point that the value of gold is not much different than it has been in history before paper currency. For example in the western days, a gold coin would fetch you a good rifle and a nice suit. Comparatively, an ounce of gold will get you about the same today. Though, I would probably opt for a cheap suit and a better rifle.
Gold is an excellent hedge against inflation and a proven worthwhile investment within our current society. It is a poor investment when it comes to surviving the collapse of our society. Diversification of one’s investments would ideally include both precious metals and survival oriented goods, services, foods, and training.
And, nonetheless, before it was "over" and the world began to recover, how many tens of millions of people died violent deaths?
and
...how many tens of millions of people "woldwide" died viollent deaths...