Rare objects and metals will always have value. Most people feel that they are safer than paper money because you cannot duplicate them. The same could be said for land, some land brings an income but some dosent. In the superinflation of the mid 70's gold went wild those that bought then either sold at large losses or held and just recently show a profit.
As of now there is no 1099 reporting on Precious Metals. This will however start in 2012 because our president decided to put that in the new health care bill. Death eats Cracker.... Fiat currency is money printed out of thin air. For instance, our government just printed billions worth of new 100 dollar bills. It cost them .09 for each bill. Back in the day governments used to have to have Gold to back up the paper money that they print. These days they do not. The paper money is getting de valued which in turn raises the price of precious metals. Can you pay for goods with Gold or Silver? In most parts of the world yes it will be accepted and in the US I have heard of it happening. Can it happen in the future? Maybe. If we dont pull out of this economic nose dive it may be the case. It is unfair what the Federal Reserve (a privately held company not part of the government) is doing to our country and leaving our children in massive debt. Kind of like this thread sitting in the political satire forum. It could have helped alot of people that dont understand how to protect themselves against inflation. I personally hope it dont get that far. I hope this country can find a way to get back on its feet although with the way things are going I dont know if that will be the case. Great question by the way Death Eats Cracker.
As mentioned gold and silver cannot be replicated/created like paper money. Yes mine production adds to the supply but it is a microscopic inflation when compared to the OUT OF CONTROL fiat paper printing/creating. There is no telling how much fiat money is out there.
You can argue why gold and silver is valued as money but you cannot argue that they are valued as money. When the paper game unravels (as it always does) gold and silver will retain whatever wealth you while the notes backed by the criminals will tumble. And in this particular moment in time when gold and silver have been purposely suppressed you will not only retain your wealth you should increase it.
i'd hold back on using that as an explanation to clients as part of the question wasn't even answered:
'After the supposed financial apocalypse do you fully expect that you will be able to trade a piece of gold or silver for goods and services?'
this was not answered.
so, when the fiat collapses (matter of time according to Hpark , he just doesnt know when, maybe by summer Hpark? can you help us out?)---- how much gold to buy a loaf of bread? how will it work?
also , do you REALLY want to go to your clients with this:
'....You can argue why gold and silver is valued as money but you cannot argue that they are valued as money'
'After the supposed financial apocalypse do you fully expect that you will be able to trade a piece of gold or silver for goods and services?'
this was not answered.
so, when the fiat collapses (matter of time according to Hpark , he just doesnt know when, maybe by summer Hpark? can you help us out?)---- how much gold to buy a loaf of bread? how will it work?
also , do you REALLY want to go to your clients with this:
'....You can argue why gold and silver is valued as money but you cannot argue that they are valued as money'
Thanks, Ricboff. That was the point I'm trying to make.
I do not for a second believe that there is an impending economic apocalypse, but many who buy gold-including members of this forum- do. My point is that if fiat currency collapses, metals will become the new fiat, that is to say it will only have value if people assign it value. I would suspect that if someone has a pig, he would be much more willing to trade it for some chickens than a piece of metal. After this imaginary collapse, metal will have no value. And if somehow it does, who gets to say what a Silver Eagle is worth?
I do not for a second believe that there is an impending economic apocalypse, but many who buy gold-including members of this forum- do. My point is that if fiat currency collapses, metals will become the new fiat, that is to say it will only have value if people assign it value. I would suspect that if someone has a pig, he would be much more willing to trade it for some chickens than a piece of metal. After this imaginary collapse, metal will have no value. And if somehow it does, who gets to say what a Silver Eagle is worth?
True and considering gold and silver have been money for eons and nobody will trust paper money its pretty safe to assume gold and silver will still be still seen as money. And without some form of currency bartering is much more difficult, thus the creation of money.
Bottom line is certain fiat currencies right now are very weak (US dollar, EURO etc). If you want to stuff them under your bed and think they'll be worth what they are now in 5 years be my guest.
Yeah, if you can find someone who would be willing to trade weapons for a small piece of metal.
Again, all this talk of a financial collapse is nonsense, but if something like that were to happen, we would be looking at a Mad Max type situation. Gold and silver coins/bars would be useless if there is no economy. People will need food, fresh water, heating oil, clothes, etc. not little round pieces of metal. It offers nothing that will help people survive.
If anyone really thinks that the world's economy is going to collapse you really should be hoarding tobacco, alcohol, weapons, ammo and food. Those will be the only items that have any value for at least the first few generations after this collapse. Once everything begins to stabilize, then perhaps actual money will start being used but all the hoarders will be long dead.
Again, all this talk of a financial collapse is nonsense, but if something like that were to happen, we would be looking at a Mad Max type situation. Gold and silver coins/bars would be useless if there is no economy. People will need food, fresh water, heating oil, clothes, etc. not little round pieces of metal. It offers nothing that will help people survive.
If anyone really thinks that the world's economy is going to collapse you really should be hoarding tobacco, alcohol, weapons, ammo and food. Those will be the only items that have any value for at least the first few generations after this collapse. Once everything begins to stabilize, then perhaps actual money will start being used but all the hoarders will be long dead.
