No bank account, no retirement account

[LibForestPaul]

What would be the affect if every American withdrew money and bought PM's?. Put IRA into PM assets? Just curious?

Say, 50 - 90% of their total assets was PM backed. 10 - 50% for day to day ops.

 

[Andrew-Austin]

What would be the affect if every American withdrew money and bought PM's?. Put IRA into PM assets? Just curious?

Say, 50 - 90% of their total assets was PM backed. 10 - 50% for day to day ops.

Umm... First of all there would be a run on the banks, and not everyone would get their money.

And people who already bought plenty of gold and silver would be feeling pretty good.

 

[Mini-Me]

Umm... First of all there would be a run on the banks, and not everyone would get their money.

And people who already bought plenty of gold and silver would be feeling pretty good.

People who already bought plenty of gold and silver might be feeling better than the people who were late to the bank run, but bank failures are still deflationary.* That said, the government's likely response would again make the people who bought gold and silver feel pretty good, sooo...

*EDIT: Then again, I did ignore the part about all the money pouring into gold and silver...

 

[brandon]

Umm... First of all there would be a run on the banks, and not everyone would get their money.

This...not enough money to go around.

And if the people that did get money out of the banks all bought that much gold the price would shoot wayyyy up to possibly millions of dollars for an ounce and tons of more gold mines would be opened around the world.

 

[CitizenPlain]

That is exactly what is happening right now.

...

 

[Objectivist]

Doesn't state welfare require bank accounts for direct deposit of funds. I know the banks are making a killing on fees.

 

[eric_cartman]

gold would probably go to $50,000 an ounce

 

[amy31416]

gold would probably go to $50,000 an ounce

And martial law would be declared (for some manufactured reason), and most all of the gold/silver would be confiscated, laws would be put in place that people could no longer own precious metals.

 

[CitizenPlain]

Some laws are made to be broken

...

 

[Matt Collins]

Horrible idea because one cannot "invest" in PM, only speculate. Not only that but they would not be earning a return on their money.

 

[InPaulWeTrust]

Horrible idea because one cannot "invest" in PM, only speculate. Not only that but they would not be earning a return on their money.

I don't think owning PMs is to be seen as an investment that one is attempting to earn a return on for the majority of the time, but rather a tangible object that will maintain its value thus letting the individual retain his or her wealth rather than it be inflated away into the sky.

In a scenario with a run on the banks such as the one above I would much rather own precious metals than stock certificates that supposedly earn a return.

 

[stag15]

I don't think owning PMs is to be seen as an investment that one is attempting to earn a return on for the majority of the time, but rather a tangible object that will maintain its value thus letting the individual retain his or her wealth rather than it be inflated away into the sky.

In a scenario with a run on the banks such as the one above I would much rather own precious metals than stock certificates that supposedly earn a return.

Zimbabwe has a stock market, correct? I wonder how many stocks pay a dividend. I wonder if the dividends are greater than the inflation.

 

[LibForestPaul]

I am more wondering how would the Centralized Banking Cartel operate (FED). Do they need deposits? What happens to the banks books if deposits suddenly drop. How would this affect other Cartels.