Nothing to See Here, Move Along

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[–]Alphix 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (5 children)

Silver and gold have a constant purchasing power throughout history. There has been a lot of subliminal propaganda against hoarding these metals by the deep state. The term "gold bug" is now a pejorative, for reasons that should be obvious. They WANT you thinking in fiat and using fiat, not in terms of constant value metals.

Don't worry once financial chaos sets in, silver and gold will return as alternative currency.

[–]Alienhunter 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (4 children)

But you can't eat gold or silver.

[–]Alphix 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

Meat farmers can't eat their entire production either­.

I'll go ask them if they're interested in some ACTUAL MONEY as a trade.

[–]Alienhunter 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

Why would they want gold or silver if there is no economy? You can't eat it. You can't do anything practical with it outside of making electronics which you aren't doing if there isn't an economy.

Gold and silver only have value if people want it. It's worth more than fiat of course but they are essentially just rocks.

Why would a farmer want to trade meat for shiny rocks?

You're better off stocking up on booze and cigs if you expect the apocalypse. Those will be in hot demand. Not rocks. Hell paper money has worth as TP at least. Did that in nam a few times. Could say I had so much Dong I was Lo Dit.

Hope Minh enjoyed the view.

[–]Alphix 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

A farmer would want to trade meat for "shiny rocks" because if he doesn't, the meat will go bad on him. On the other hand, those "shiny rocks" won't spoil, and he just might convince the slaughterhouse, the butcher, the feed farmer to take these "shiny rocks" as payment instead of toilet-paper "money" that will lose 50% of its value between the time of payment and the time they can rush somewhere to spend it.

Basically you are asking me why money exists. Sigh.

[–]Alienhunter 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yes but we're talking about gold in that sort of situation as a long term hedge against inflation where there is still some semblance of a regular economy. In that sort of situation the government still exists in some form and they'll be heavily regulating if not outright criminalizing your gold and silver ownership. Which is going to limit you to the black market where you'll not be in exactly the most favorable trading position, you'll be paying more. It's also likely in such a situation that general stock market prices will be a better hedge against inflation than commodity speculation where prices tend to fluctuate wildly based on projected demand , which will go down in a long term inflationary period and will see the price of gold depressed as it's not in as much demand.

Now if we're talking about a true total economic collapse where the "dollar hits zero" we are talking about what is essentially a WWW III post nuclear holocaust style situation. There won't be any sort of recognizable economy. Your dollars won't be deflating in value because they won't be printing any, they'll only have practical value as insulation and TP.

In this sort of nightmare situation your gold isn't going to do you diddly squat because it is practically useless. People might trade you something for it, true, but it's value is going to be entirely dependent on what they think other people will trade for it.

In that situation you wanna stock up on Tobacco and Alcohol. Will be worth more than the gold. You're also going to have to convince people like me that your gold is worth trading my meat for. Cause well, if there's literally no economy going on and you are starving to death, I can basically charge you whatever the fuck I want, one gold bar for a piece of jerky I might do. But you're going to run out of the stuff quick.

It's just not very practical to stockpile gold and in a true apocalyptic situation it's not going to be very useful to you and your survival.

Again the people selling the gold for such purposes obviously don't believe that that there is going to be a total economic collapse nor do they believe that it will hold them through a financial downturn, because if they believed either of those things they'd be the ones buying the gold wouldn't they? Why would anyone trade soon to he necessary gold for soon to be worthless fiat currency. They'd have to be idiots to do that. They clearly don't believe their own sales pitch.

Gold and precious metals are massively impractical as a currency which is why banknotes have been the standard for a long while. Now we can argue about the problems with fiat currency and there's a good argument to be had for sticking to gold or silver backed currency but that's a very different thing than commodity speculation to ride out inflationary periods or actually using gold to pay for shit directly following a total economic collapse.