Home Forums Hunting & Shooting Hunter's Campfire Gold as a Hedge No so much

She has to sell to keep her asset balance. I doubt she likes having to do it. But it is the nature of the beast.

OK, simple question from a non-gold investor (at least not yet), assuming gold to be a hedge against a currency collapse.

Lets say you buy a pile of gold in maybe 1/4 once coins....................how do you reasonably spend those coins in the future?

MM

You bring me one, I’ll make you a belt and holster. You bring someone else one and get a ham and side of bacon.

You mean convert them into cash?

I mean use them as cash & get some change back in comparable value; typical belt, even a high end one, doesn't come close to the value of the gold coin.

MM

I give you change in gunpowder, silver coins, and/or 1/10th ounce gold coins.

Buying gold, for most people, is buying insurance.

Something that costs money,
you hope to never use,
And you hope it will be as good as promised when you really need it.

In a currency collapse scenario, it's hard to predict what anything will be like. I can tell you that a lot of people fleeing Vietnam in the late 70's paid their way with gold. I'm not talking about '75 when the US was offering free rides out, but later, after the Communists wrecked the economy and the fiat currency was worthless. There were boats, from Hong Kong for example, that would take people out for a piece of gold. A lot of the ships were junk that would have been scrapped, but they were able to collect some gold with them before being abandoned.

Even the people that didn't have to pay for their ride out took gold because Vietnamese money was worthless. Remember that guy who jumped out of the Chinook to get on the USS Kirk? He had some small gold bars in his pocket, his life's savings, but lost them in the sea when he jumped. To be more accurate, that dude stole a Chinook, flew it to his house, picked up his wife and three kids, then flew out to the Kirk and hovered while his family was rescued. Then he tipped the chopper over to one side while jumping out the other (because it couldn't be landed on the Kirk whose crew had already been shoving Huey's off the deck).

I also buy some of the Canadian maple gram cards that have 25 individual 1 gram gold coins together on a card that's scored to remove 1 gram at a time. Each gram is worth about $65 right now.

Bb

Not a bad way to as a hedge against the US going full Argentina . For those that think it can't happen, look at our president, debt trajectory, and current rate of inflation. Bitcoin won't be worth chit in a full collapse.

The stock market is kept pumped up by the Federal Reserve (big banks) and the other big banks. They can make it go down just as fast (after they get their money out) and then buy back in.

Buy pre 1965 silver. It is easily recognizable, readily accepted, and small value enough for day to day commerce. One dollar of 1964 coins have no collector value but have a little over 7/10 oz. of silver. A dollar in silver today is worth $17.50.

I imagine if virtually every human being prior to the 1930s could figure it out, we can, too.

Bitcoin won't be worth chit in a full collapse. Don't be so sure of that.

Bitcoin is not tied to the US. It is globally supported and operated. But let's be realistic here, if we are talking about a full on melt down your gold and silver isn't going to do jack chitt for you. You can't eat or drink it last time I checked. Those with food, water, and medicine don't need gold for anything. If the full on chitt hits the fan you only need a few simple things, Housing, Food, Water, Medicine, and Protection.You won't be going out shopping for unnecessary crap.

So that takes us back to a normal (as we have known it) crash. Were money is still accepted everywhere as is credit. If you want to hedge or " buy insurance" in gold by all means do so. But that hedge will fall well short of Bitcoin.

a certain old lady now deceased a long time ago heard mr roosevelt was going to prohibit americans from owning gold.
she only had 20dollars but bought a 20dollar gold piece, held it all her life, and a decendent still had the gold.
she told the decendent never trust the government, any government, they would not act in your behalf.
she came from slovakia, a place you could get dead quite easily.
if you had to leave that country you would have a currency reconized and accepted anywhere in the world.
and one 20dollar gold piece still buys one colt pistol
its a hedge that you don't have to disclose which makes it even better, an insurance policy.

Good points. When SHTF no one will be looking for precious metals; they will be wanting to barter for necessities.
BTW, the coming cyberattacks will wipe out anything you think you own in the digital world.
Turn all that into hard assets while you can. Time is short!

That's a mighty expensive holster and meat purchase.

It seems you don't understand how blockchains work nor what makes them so secure. But I will grant you that nothing is bombproof!

I certainly don’t. What happens if the internet is shut down?

That was true till the last couple years. Try buying "junk" silver nowadays for anything close to spot. So much has been melted down now, that they are hard to come by. Big dealers are offering their customers better than spot if they sell them back their "junk" silver nowadays.