3 Reasons You Shouldn’t Stock Precious Metals

[Matt Collins]

3 Reasons You Shouldn’t Stock Precious Metals

Very true:
http://survivalcache.com/precious-metals-survival/

 

[sevin]

Agreed. Not a top priority for survival preps, but a top priority for a portfolio.

 

[Uriel999]

Agreed. Not a top priority for survival preps, but a top priority for a portfolio.

Agreed. And actually, I consider myself a "financial survivalist" meaning I believe we face a serious dollar crisis but not a zombie mad max crisis. Sure I do buy my firearms for those zombies (gotta keep those bases covered...and guns are fun toys!), but I mainly believe we face a series financial crisis. I actually spend some time on a "survivalist" forum. I'd say at least half of the posters there are fucking nuttier than a walnut, but the rest are actually quite brilliant. Several are more knowledgeable in economic than anybody I have seen post here, or at least have posted more information and explained it clearly than I have seen here. Of the people I am talking about, many are in the Ron Paul movement. These "survivalists" and "preppers" are concerned with wealth preservation.

you may be able to put perhaps a year or two worth of food away, but what then? Oh you stored some seeds too? Great, how many decades of farming do you have under your belt? Oh wait, you need to not only eat, but pay bills...see where I am getting at?

Things are more complicated than your typical "survivalist" makes things out to be. They long for a "utopia" were they spend all day with subsistence farming and shooting "sheep" aka non-preppers. I'm honestly disgusted with many people in the prepper lifestyle. Putting back supplies for a rainy day is one thing...even trying to prep today for long lasting hard times I understand trying to do...but what is happening in the US will like Argentina, or perhaps Wiemar Germany. Not the end of the world. A good portfolio is what it is all about.

 

[DamianTV]

I got a good reason. You can get robbed. It is a little more difficult to have your money that is in a bank (as much as I hate em) get stolen. Not much more difficult, but a little bit.

 

[Elwar]

Precious metal is good for a SHTF scenario if there are still other countries out there thriving. You can get out of dodge and relocate to another country with gold. Others wouldn't have that option.

Cash is good for staying local. The Kurds have been using their Kurdish dollar for decades even though Saddam stopped its production. It became the standard currency with no inflation.

Gold is good if you only want to prepare just enough to get to the nearest working airport or shipyard to GTFO if possible.

 

[keepitlow]

I stock some 90% silver and some fractional gold. Good to be diversified.

In a SHTF scenario where we go back to living in medieval times...food / water, shelter, clothing, fuel is about the only trading vehicles that people will want.

Now, you may come across a farmer or someone that has an abundance one one of these things. If paper money is next to worthless, you would need something to trade for the goods or services you desire.

Usually what is accepted is precious metals or some other desirable commodity like ammunition, fishhooks, needles, etc.

We go through tons of seeds in a year and they would make good barter items and we get em for free in our food. Especially the high seeds yielding squashes and melons seeds.

Another for 'free area' of barter goods is the disposable plastic bottles we drink from. Our family goes though 20 - 25 bottles a week. They can be saved if one has the room (which we don't) and used for barter if need be. (People will need empty bottles.)

 

[Cowlesy]

I just hedge my cash position with it. As the value of gold goes up, I assume the purchasing power of my cash goes down, so I stay even.

 

[Southron]

I agree to some extent but most people who stock PM's are not survivalists.

I like preparing for disaster, but I just can't live like the hardcore survivalist.

I would like to have some assets besides food and bullets in case there is no collapse or it is delayed 40 years.

 

[Matt Collins]

Precious metal is good for a SHTF scenario if there are still other countries out there thriving. You can get out of dodge and relocate to another country with gold. Others wouldn't have that option.

Gold is good if you only want to prepare just enough to get to the nearest working airport or shipyard to GTFO if possible.

Except that who has the ability to lug a trunk full of gold around when trying to make a quick escape? It's highly impractical (which is why we have paper to begin with).

 

[Mahkato]

Except that who has the ability to lug a trunk full of gold around when trying to make a quick escape? It's highly impractical (which is why we have paper to begin with).

 

[Elwar]

Except that who has the ability to lug a trunk full of gold around when trying to make a quick escape? It's highly impractical (which is why we have paper to begin with).

If you have a trunk full of gold you already have a private plane that you can use during a SHTF scenario.

Gold is about the easiest way to transport large amounts of money.

You could buy a house with one of these.

 

[wormyguy]

The thing is that gold has no inherent value beyond its very limited industrial uses. If we ignore those industrial uses, there's no reason why gold-backed currency has any more inherent value than fiat currency, or any other object with no practical use. It's all psychological.

 

[dannno]

The thing is that gold has no inherent value beyond its very limited industrial uses. If we ignore those industrial uses, there's no reason why gold-backed currency has any more inherent value than fiat currency, or any other object with no practical use. It's all psychological.

Wrong. Gold was valuable before industrial uses. It has held a relatively stable value for thousands of years.

One reason is because it doesn't degrade.

 

[wormyguy]

Why is it valuable?

People say so.

Why is fiat money valuable?

People say so.

 

[Icymudpuppy]

Personally, I have everything I need already, and it doesn't involve gold or mountains of MRE's

Invest in skills and community networks of other like minded people with skills you don't have.

Join your local grange, or similar community club of people who like doing old fashioned things together. Quilting clubs, Brewer's clubs, etc.

 

[dannno]

Why is it valuable?

People say so.

Wrong. It is valuable because it has always been in demand.

Why is fiat money valuable?

People say so.

Wrong. Because GOVERNMENT says so and enforces it with guns.

 

[wormyguy]

Wrong. It is valuable because it has always been in demand.

Why is it in demand? People have assigned it an arbitrary value far greater than its practical value.

Wrong. Because GOVERNMENT says so and enforces it with guns.

Nope. Consider the example of the Somali Shilling (a fiat currency). I think we can both agree that there has not been any Somali government to speak of since 1992 or so. And yet the Somali Shilling continues to be used as legal tender in Somalia. In fact, due to its relative stability, it's used as the local currency in much of Ethiopia and Kenya as well. It still trades on international currency markets.

 

[Matt Collins]

You could buy a house with one of these.

And when you need to buy something that is worth 1/100th that in a SHTF scenario, how do you make change?

That's the point, it's heavy and impractical. It's not easily divisble either.

It's good for when an economy becomes stable, but in SHTF it's nothing more than a paperweight.

 

[Live_Free_Or_Die]

Why is it in demand? People have assigned it an arbitrary value far greater than its practical value.

What is changing exactly... the value of gold or dollars?

 

[newyearsrevolution08]

I got a good reason. You can get robbed. It is a little more difficult to have your money that is in a bank (as much as I hate em) get stolen. Not much more difficult, but a little bit.

I don't agree with that

a bank never has enough money, if it gets robbed sure it is insured but by who? pretty sure our wonderful tax dollars backs most any financial ANYTHING that goes on in our states

metals while not for survival CAN do some good once things get on their way to recovery.

I would suggest silver over gold any day. I have always talked about silver having more room to grow versus gold as well as when gold skyrockets there are only so many who will affored it and most will simply buy into "reciepts" for their gold especially the lower and middle class but that simply isn't the same and the backing is next to nothing. It is far worse then playing with stocks that are rocky as well.

If anything you can HOLD IT, you can smell it (if that is what you want to do with it lol) among other things like trading it for other stuff.

As far as survival goes, if shit hits the fan it really doesn't matter how much precious metal you have however on its up swing it can make you damn wealthy because look at the great depression and those who ended up on top after it. There are only a few things with that capability and the buying power of precious metals.

I say stock up on

1. food/water
2. guns/ammo
3. silver/then gold
4. fencing to keep assholes from taking the above. guns can help with this as well