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  #21  
Old 03-08-2010, 03:31 AM
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gregabob Male gregabob is offline
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Gold has held it's value for millenia. It's the paper currency that has lost value--the dollar has lost 95% of it's value since 1913, the start of the Federal Reserve, which is neither Federal nor has a reserve. One ounce of gold will buy the same things it did 100, 500, 2000 years ago. It's always been the number one medium of exchange--it's scarce, durable, and divisible. After the dust settles from any conflagration, whether natural or man made, a medium of exchange grows out of a need to trade with others. Gold and Silver have served this purpose admirably and without inflation for thousands of years. Inflation of the money supply is a consequence of having a group of individuals exercise control over money--paper money. This is why bankers dislike gold and silver--they can't control them. We however can take control of our savings. 'Junk' coins are an easy way to start. 1 oz. silver bullion is easy to get and store. Gold represents a lot of value, so only a few coins can get you a lot of goods in exchange. Silver has the benefit of being used for smaller value exchanges.
Think of it this way--gold's value never changes--it's the paper currency that goes 'up' or 'down'. And for the last 100 years, the value of those colored pieces of paper in our wallets has been going down--now $1 is worth a 1913 nickel. But 1 oz. of gold will still buy you a nice suit of clothes--just like it could back then.
I can absolutely guarantee nobody will be treating gold coins like the Germans treated marks in the 20s when inflation is foisted upon us again. I've bought some silver bars, and will be buying some gold here in the near future. I'm not going to tell anyone what to do, or make recommendations, but this is what I'm doing.
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  #22  
Old 07-21-2011, 09:34 PM
GentleLady Female GentleLady is offline
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Wonderful post and my goals exactly! No debt, land paid for and sitting nice and pretty while the wage slaves are really working harder and harder and getting no where while they try to keep up with the Jones's. Not for me. I can do without all the fancy-dancy stuff, just give me a roof over my head and some food to eat and some really good friends.
Lisa
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  #23  
Old 06-04-2014, 10:01 PM
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rubyyarn Female rubyyarn is offline
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This is an old thread, but I have been following it with interest. It is now 2014 and nothing much has changed, yet.

My question is, how do you use gold, silver, or whatever, as a medium of exchange if the worst should happen? I don't think you could go to the grocery store with a 1954 dime and be able to buy much. The clerk would only see that it is a dime and not let you walk out with a cartload of food, even if the silver was worth it.

Would the dime have to be cashed in at some sort of exchange so you could go to the store with semollions or whatever passes for cash at that time?

I really am new at all of this...
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  #24  
Old 06-04-2014, 11:09 PM
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The way I think of it, if there is a crash of some sort where paper money is no good, there won't be any stores to buy anything from anyway. I look at gold or silver more as something to barter with.

With that said, when everyone is hungry, or in need of something, other items of barter would be better than gold or silver. Things like coffee, ammunition, store-able food stuffs, etc.

I don't have the money to be buying gold or silver, but I am slowly stocking up on those other things.

But looking around today, there are some stores or merchants who do take gold or silver by weight. Backwoods Home Magazine is one of these - when you order a subscription you can pay for it in silver.
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  #25  
Old 06-05-2014, 03:36 AM
Kachad Male Kachad is offline
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I understand that gold and silver should perhaps be part of a financial portfolio. Having the material at hand versus virtual metals makes a lot of sense too.

For myself though, I have avoided buying and keeping any precious metals.

I have my 401K which I consider a standard investment for my retirement. I'm betting that there will be not SHTF moment that will make that completely obsolete. Sure, market fluctuation, bubbles and all, but I still believe the 401K is worthwhile.

Just as important, I put a lot into savings. I keep a min\max level there. The minimum is kept at a level where if I trim down all expenses, that minimum could keep me going until I can recharge it.

The maximum level is a target that is set by the next real investment - such as land (check), equipment to develop it (ready to pull the trigger), outbuildings (can't wait), etc.

This is where I have come see the real value of the $$. Along with developing the practical skills to bring out the maximum potential of said land.

Dang, it seems like I've been rambling on these boards a lot in the past couple of weeks.
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  #26  
Old 06-05-2014, 08:25 AM
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I love what Patience shared on this thread.

We lost our retirement account in the dot com bubble so we had to start over. Fortunately, we own our home and some revenue property ("own" is a misnomer - if the government can tax it, it's not yours).

As someone on this thread mentioned - we're learning to live "poor" before we have to. A more politically palatable way to phrase it is that we're learning to live "sustainably."

We're "investing" in cost of living reductions such as better insulation for our home, improving our solar system, expanding our garden and thinks like that. We're very near a point where we could live "off grid" in the suburbs if we needed to but I'm glad we don't right now.

Surprisingly, we've "made" money on food. Long term supplies which I bought 3 or 4 years ago have gone up in value, whereas the same amount of money in cash or in a bank would barely earn more than the bank fees.

There are no clear answers. Just make sure you don't spend money on things with no value. That's why I adopted my signature line.
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  #27  
Old 06-05-2014, 11:45 AM
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rubyyarn Female rubyyarn is offline
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This is reassuring. If the government is going to expect tax money, they will have to define 'money' in some way.

We have been saving all of our lives, have no mortgage, etc., etc. We are making more use of the garden and putting food by. I would miss my computer if the lights went out for any amount of time, but if we install a rain catchment system, we could get by without the grid.

Hopefully it doesn't come to that, I would miss this group
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  #28  
Old 06-12-2014, 06:18 PM
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Here is my hedge against inflation. I buy food stores with my extra money. Cash a year from now will be worth less then what it is worth today. But food prices continually go up.
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  #29  
Old 06-12-2014, 07:19 PM
Oblio13 Oblio13 is offline
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The average interest rate on a 1-year certificate of deposit in the US is 0.88%. At a tax rate of 25%, that's an after-tax interest rate of 0.66%. According to the Bureau of Labor Statistics, our rate of inflation is 2%. So you are losing over 1.3% annually on your savings in the bank. And that's assuming the official rate of inflation isn't wildly optimistic.
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  #30  
Old 06-28-2014, 10:48 AM
Harbinger Harbinger is offline
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How would you go about using PMs as currency? Gold and silver have been the standard of wealth for thousands of years. Its portable. Its durable. Its rare. It retains its value regardless of the ups and downs of how many "dollars" are needed to buy amounts of it day to day. For instance, a few years ago I could purchase a new canoe for $700, or for an ounce of gold. Today that same canoe sells for $1400. But I can still buy it for that same ounce of gold.

There is not one example of a fiat (money by decree) currency that is not backed by either gold or silver lasting. They ALL crash sooner or later and leave those broke and destitute who thought their future was secure because they had "cash". Seriously, if all I had was a 401K, IRA, or similar financial instrument that I was depending on for my future, I wouldn't be able to sleep at night! Should the US Dollar looses its position as the world's reserve currency, which it will, and the value of the Dollar drops 40% to 60%, what is your nebulas investments worth? They could eventually be ZERO!

PMs are a hedge against this sort of loss. So are quality intrinsic items like tools, durable clothing, food, spirits, tobacco, meds, SKILLS, ammo, firearms, WATER, and a thousand other things that will retain their value once the price skyrockets or are simply unavailable at any price.

Certainly if people are starving, a sack of wheat will be worth more than an ounce of gold. You can't eat gold, as we know. But at some point an economy will re-emerge where PMs will once again be sought after as a medium of exchange just like always.
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  #31  
Old 06-28-2014, 11:33 AM
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Quote:
Originally Posted by Harbinger View Post
How would you go about using PMs as currency? Gold and silver have been the standard of wealth for thousands of years. Its portable. Its durable. Its rare. It retains its value regardless of the ups and downs of how many "dollars" are needed to buy amounts of it day to day. For instance, a few years ago I could purchase a new canoe for $700, or for an ounce of gold. Today that same canoe sells for $1400. But I can still buy it for that same ounce of gold.

There is not one example of a fiat (money by decree) currency that is not backed by either gold or silver lasting. They ALL crash sooner or later and leave those broke and destitute who thought their future was secure because they had "cash". Seriously, if all I had was a 401K, IRA, or similar financial instrument that I was depending on for my future, I wouldn't be able to sleep at night! Should the US Dollar looses its position as the world's reserve currency, which it will, and the value of the Dollar drops 40% to 60%, what is your nebulas investments worth? They could eventually be ZERO!

PMs are a hedge against this sort of loss. So are quality intrinsic items like tools, durable clothing, food, spirits, tobacco, meds, SKILLS, ammo, firearms, WATER, and a thousand other things that will retain their value once the price skyrockets or are simply unavailable at any price.

Certainly if people are starving, a sack of wheat will be worth more than an ounce of gold. You can't eat gold, as we know. But at some point an economy will re-emerge where PMs will once again be sought after as a medium of exchange just like always.
Very well put!

Since I don't have enough cash to convert to PMs, I am slowly gaining with what you say with tools, food stash, firearms/ammo, etc. It's such a good feeling to have these kind of things - has added to my sense of security.
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