i feel so dumb, but why is gold so important

[danfinance2008]

if we all go bamkrupt , what good is a shiny metal?

what good is gold if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw gold?

 

[TruthisTreason]

if we all go bamkrupt , what good is a shiny metal?

what good is gold if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw gold?

Yes, we don't need gold. So everyone stop buying it, so it will be cheaper when I want to.

 

[Kludge]

Gold is more useful in a hyperinflationary scenario in which the government and global economy is still functioning "normally", but the government cannot control the currency correction. Gold can also help protect assets in an inflationary environment if you don't want to risk investing money.

In a SHTF scenario in which anarchic disorder is essentially in effect (widespread rioting, attacks on street-level bureaucrats, and organization of anti-TPTB militia), gold is fairly useless. You'd want tobacco, guns, ammo, food, water, and electricity in this case.

 

[sam9657]

if we all go bamkrupt , what good is a shiny metal?

what good is gold if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw gold?

In order for an economy to operate efficiently we must have an efficient medium of exchange. It is very inefficient to barter. While fiat money currently serves as the medium of exchange, fiat money is easily manipulated by central banks and printed endlessly by governments.

Throughout history gold and silver and been the chosen method of money since they are precious and easily divisible. Gold and silver hold their value over time and are REAL money. In fact is is stated explicitly in the constitution.


Section. 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

 

[silverlinkx2]

Yes and seeing how powerful, centralized and pervasive our government/military/police force are, it's far more likely we'll face hyperinflation and martial law than a complete breakdown of society. So in this case gold will keep its value and the more the dollar loses its value, the more valuable gold will be.

 

[danberkeley]

if we all go bamkrupt , what good is a shiny metal?

what good is gold if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw gold?

if we all go bankrupt , what good is a cotton/linen piece of cloth?

what good is FRNs if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw FRNs?

 

[Truth Warrior]

Gold and Economic
Freedom
[SIZE=+1]By ALAN GREENSPAN[/SIZE]
http://www.gold-eagle.com/greenspan041998.html​

 

[lodge939]

Gold and Economic
Freedom
[SIZE=+1]By ALAN GREENSPAN[/SIZE]
http://www.gold-eagle.com/greenspan041998.html​

Brilliant article. If only this man was in our government.

 

[Ilhaguru]

YOU CAN"T EAT GOLD!

http://www.lewrockwell.com/north/north262.html


Remember the whole "dollars/money are worthless if you are stranded in a deserted island" logic? Same applies to gold.

 

[LibertyEagle]

Brilliant article. If only this man was in our government.

You're kidding, right?

 

[Michigan11]

Brilliant article. If only this man was in our government.

No Shit!

 

[lodge939]

You're kidding, right?

Right.

 

[Josh_LA]

if we all go bamkrupt , what good is a shiny metal?

what good is gold if no one can afford it. we do not need it, is is a sign of being rich. so what if people say screw gold?

people HAVE said screw gold for about 20 years.
people HAVE said screw debt for decades too, which is why we're in this situation.

metals are ONLY of any value if anybody can utilize it, so yes, if you went to Africa, people probably wouldn't view gold any different than aluminum, but any industrial country would pay more for gold, silver, copper than they do for iron, aluminum because of what they do with it.

so yes, it's no good if nobody can afford it, you better not be there, but its good if MOST PEOPLE CANNOT, BUT FEW CAN.

 

[Bryan]

what good is a shiny metal?

Gold is very good at conducting electricity since it does not tarnish- so it has good industrial applications for sensitive electronic connectors (such as on analog audio cables). Some people also like it for jewelry or to make coins out of.

I personally would never spend any real time digging big holes in the Earth in search of gold so there is little reason why I'd want to pay someone else to.

 

[Truth Warrior]

Brilliant article. If only this man was in our government.

He seems to really prefer the PRIVATE sector, for whatever reasons. Just gotta pay that mortgage, after all.

 

[gorgehound]

Simple - even when the world goes to hell, gold still gets you women.

 

[Danke]

Simple - even when the world goes to hell, gold still gets you women.

Bling?

 

[tremendoustie]

Really, gold has 3 advantages:

-Cannot be manipulated by government (at least not as much)

-Is portable (you can't really carry $800 worth of soup around with you)

-Has a very, very, long history as money.

But yes, people could just say, "screw gold", just as they could say "screw FRNs", or any other kind of money, since money derives its value as a medium of exchange.

The only thing people couldn't just ditch are things like food, clothing, etc. But then, it's a little impractical to keep your life savings in soup cans and sweaters. Best to be diversified, IMO, and that means some of everything.

 

[cien750hp]

Really, gold has 3 advantages:

-Cannot be manipulated by government (at least not as much)

-Is portable (you can't really carry $800 worth of soup around with you)

-Has a very, very, long history as money.

But yes, people could just say, "screw gold", just as they could say "screw FRNs", or any other kind of money, since money derives its value as a medium of exchange.

The only thing people couldn't just ditch are things like food, clothing, etc. But then, it's a little impractical to keep your life savings in soup cans and sweaters. Best to be diversified, IMO, and that means some of everything.

it has many other advantages too. you mentioned portable, which is definitely one, but also that it is easy to store, and does not perish. It is easily divisible, rare, and of consistent quality. of course, the psychological value and history of it being the most efficient medium of exchange doesn't hurt either

 

[lodge939]

But yes, people could just say, "screw gold"

this will never happen though. As we learnt from Treasure of the Sierra Madre
, people will kill for gold.