Survivalists question
joz350
Posts: 185 ✭
I'm sure most guys on this site have thought about an extended economic disaster. Keep that in mind as you consider my question.
Ok, so a guy buys gold with collectable value to maximize the value of the metal only so he can sell it later and buy higher volumes of bullion.
What signs would you be looking for to tell you to liquidate the collectables and get into bullion besides a huge drop in gold prices?
I guess you could argue that there will always be rich folks looking to buy collectables but if things got ugly how would you get the message out. I certainly wouldn't mail anything nor would I trust the online banking system and E bay is based on both. if you can't physically deliver the product your options will be seriously limited for selling.
Having said that, and you did sell the collectables early enough, would you buy 1/10 eagles or older coins like Indians?
One of the great things about junk silver is it is hard to fake. Does any classic gold have the same reputation?
Would you keep any 1 oz coins or go strictly fractional? I know some of the hard core fellas I know talk of paying for thier house etc. with an ounce or 2 of gold when the SHTF. To my thinking who are you buying from when it gets that bad, the bank? In my mind you can't have complete economic break down and consider paying off your bank loan as a realistic way of securing your property. I would consider good friends and a .308 a better choice.
Please no black helo cracks, I don't live in Jerico etc.
Ok, so a guy buys gold with collectable value to maximize the value of the metal only so he can sell it later and buy higher volumes of bullion.
What signs would you be looking for to tell you to liquidate the collectables and get into bullion besides a huge drop in gold prices?
I guess you could argue that there will always be rich folks looking to buy collectables but if things got ugly how would you get the message out. I certainly wouldn't mail anything nor would I trust the online banking system and E bay is based on both. if you can't physically deliver the product your options will be seriously limited for selling.
Having said that, and you did sell the collectables early enough, would you buy 1/10 eagles or older coins like Indians?
One of the great things about junk silver is it is hard to fake. Does any classic gold have the same reputation?
Would you keep any 1 oz coins or go strictly fractional? I know some of the hard core fellas I know talk of paying for thier house etc. with an ounce or 2 of gold when the SHTF. To my thinking who are you buying from when it gets that bad, the bank? In my mind you can't have complete economic break down and consider paying off your bank loan as a realistic way of securing your property. I would consider good friends and a .308 a better choice.
Please no black helo cracks, I don't live in Jerico etc.
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Comments
But what about the gold issue.
Also keep in mind that at least half the time, a person may have to leave where they are, so stockpiling food, water, ammo, may not help all that much for those must move scenarios. Must move scenarios might be due to disease, contamination, natural disaster.
I buy both, and some of the Modern Bullion issues that I've bought have very healthy gains, "on paper" as it were. But, if you also are building a position of pms which already includes generic gold and say, 90% silver, why would you sell your high-performing collector bullion before reaches it's maximum full profit potential? Let me make a few observations:
1) If you sell them for a profit now, you will owe taxes. That's an immediate cost.
2) If you take the proceeds and immediately turn around and buy some generic, low premium bullion, you are immediately paying more transaction costs.
3) Low premium bullion can be considered lower risk, but it should also be considered to have a lower profit potential than collector bullion which hasn't yet developed it's mature price structure.
Side note - collector bullion also has an interesting way of compensating for swings in the spot price of gold. Collector stuff gains premium when prices decline, which tend to buffer the decline. Conversely, it tends to lose premium when prices rise, which buffers the increase. This phenomenon helps to give it's owners a sense of financial stability, even more so than bullion itself - my opinion of course.
4) If you do liquidate your high premium stuff, this is equivalent to saying that you think that TSHTF is imminent. If you don't think that, then why would you sell the stuff that is performing well?
You might want to have an ongoing, constant turnover - both buying and selling on a continuous basis. The alternative is to buy and hold. If you buy and hold, even the premium stuff will serve you well if TSHTF. It just won't be sold at huge premiums.
Furthermore - if TS does not HTF, then you WILL be able to sell the high premium stuff at high prices some day in the future, and you will be more likely to realize its full investment potential by doing so.
The reason I liked Modern Bullion in the first place was because of this two-pronged advantage: It is always precious metal bullion, and it is always possible that collector values will appreciate.
My advice is to keep both, and to sell or use it depending on what the occasion requires.
I knew it would happen.
<< <i>...fractional gold maybe, some silver bars in various sizes, for bartering, and one ounce and higher gold for STORAGE of wealth. >>
Agreed. I also agree with RedTiger's first line that collectibles and survival tools don't really mix when it comes to metals. As for other items that would be helpful in a SHTF scenario itmes like bullets, batteries, portable generators, fuel and water would likely hold more purchasing power than gold or silver.
ps. I went the .308 route as well. It can do everything the .223 can and more.
people and you're looking at it. You'd best run for the hills,
or better yet, Hudson's Bay if things break down. Stash
your gold and git.
Which makes gold commems attractive as a survival hedge, especially those that are semi-scarce, currently trade near bullion value and display their gold content right on the coin.
Some of the later First Spouse coins qualify, in my opinion.
My Adolph A. Weinman signature
<< <i>Hudson's Bay? where is that?
OK. I misspoke. I meant Hudson Bay of course.
Of course there are many ways for things to disintegrate but I would
expect the worst. It's hard for me to picture a world where large num-
bers of people are starving but those few who have ammo, or gold, or
whatever can go down to the corner grocery and buy what they want.
I don't know how one can even profit on martial law unless one is pol-
itically connected. So gold and guns won't be worth much in that world
either.
Being a boy scout is a great idea but I still believe investors should al-
ways remain as positive as possible.
the woods so no one knows its there and wait out the first couple
months in it.
If it really got that bad then why would you even consider continuing to pay for your house? You think the bank is gonna come and take it away? Worried about your credit rating? Real estate values would drop by 50%, why continue to pay for that.
In the end, people need food and fuel. Thats all. "Invest" in what you need to procure lifes necessities.
Knowledge is the enemy of fear