Is anyone worried about the rise in gold/silver?
MoneyLA
Posts: 1,825 ✭
Many of you who invested/speculated in gold/silver are cheering the rally and good for you (and me).
But are any of you (including me) worried about what this rise means to the "other side" of the economy?
Gold/silver has a value as long as others can afford to buy it, and as long as others value it.
But is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it?
But are any of you (including me) worried about what this rise means to the "other side" of the economy?
Gold/silver has a value as long as others can afford to buy it, and as long as others value it.
But is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it?
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Comments
<< <i>But is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it? >>
Soylent Green was set in the year 2022. That type of crisis could yield PMs worthless but paper currency would be worthless for sure..............
Exit bunker, enter Matrix. LOL
www.AlanBestBuys.com
www.VegasBestBuys.com
That adds up to 520.00 per year. The rise in silver from let's say from 20 to 40 means I cover my gas expenses with 26 ounces of silver.
So I'd say that owning silver or gold has helped a little in this inflationary environment.
Oh and a gov't full of thumb swappers!
<< <i>Well, here's a point for conversation: with the exception of the finest gold leaf on chocolate and other fancy desserts, you can't eat gold. >>
Yes. And you can't eat guns and ammo and you can't drink gasoline. What's your point? We should start hoarding food?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Yes. And you can't eat guns and ammo and you can't drink gasoline. >>
No, but those are both useful things that would be good for bartering in the unlikely event the world as we know it ended.
World Collection
British Collection
German States Collection
all or part of their $2 TRILL in paper US debt holdings for gold and silver they'd do it in a heartbeat. But they are only doing so on a smaller scale behind the scenes so as not
upset the world's fiat apple cart. If there were no trade or political ramifications for doing it, it would already have been done.
The world's annual silver production is worth <$50 BILL/yr. That's a drop in that hat. Even the gold annual production is only $135 BILL/yr. The Chinese could easily
handle that each year. They are probably already buying up more than these amounts annually.
roadrunner
Belarus central bank halts sales of gold for roubles
My only real gold-related story today is this Reuters piece, which has since been pulled. Reader Ken Metcalfe, who sent me the original story, found another link to it over at westindia.wordpress.com.
Belarus’ central bank has stopped selling gold to local retail customers for Belarussian roubles, it said on Friday, after demand for precious metals soared due to expectations of a currency devaluation. The bank did not explain its decision.
No explanation is required, either. Anyone with a room temperature IQ in degrees Fahrenheit can figure this one out. That's why we're all buying precious metals hand over fist...to save us from this very thing.
Belarus Central Bank Halts Sales of Gold For Roubles
The global economy is so diverse that I am not worried about a long term drop in real GDP. Inflation may rather abruptly reallocate wealth, but gold should maintain its real value in this scenario.
"If the Chinese could swap all or part of their $2 TRILL in paper US debt holdings for gold and silver they'd do it in a heartbeat."
I think this will happen, perhaps suddenly (as a means to avert a currency crisis), and sooner than we might think. If $ 2 trillion were traded for half of US gold, that would imply a gold price somewhat above $ 10,000 per ounce. Probably a new currency regime would be implemented balancing the dollar, a new Chinese currency, and gold.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I'm a whole lot more worried about why gold and silver are rising than I am about the fact that they are. And evidently, Standard & Poor's agrees with me.
Gold/silver has a value as long as others can afford to buy it, and as long as others value it.
In my opinion, that isn't why gold & silver have value. I could list a hundred reasons, but I don't want to have to put you through a tirade this morning.
is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it?
I'm more worried about the fact that a severe economic crisis means lots of other things before I worry about gold & silver. My owning gold & silver is but a meager attempt to salvage and rescue what I've earned over the course of a lifetime of hard work and would like to preserve if possible.
If the dollar could preserve what I've earned, I'd be 100% in dollars. It's a judgement call. It always is.
I knew it would happen.
now so there hasn't been anything for which to trade money. Put the money in the bank
and the bankers take the interest while the government takes the principle (and then taxes
you for the privilege).
Gold will necessarily retain value so long as there's any human wealth to buy. Not silver.
Silver has value only if consumer products are being made until after the buying panic when
perception will be different.
lol. no joke.
I knew it would happen.
has there ever been a time in history when no one owned or wanted to own silver and gold? these are not tulip bulbs. although a case could be made for the possible paper mania of ETF's
i'm concerned right now about the world economy and it's relation to the USA but not to the point of worry.
<< <i>
But is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it? >>
I think it depends on how people view gold/silver when the crisis comes.
If people still view gold/silver as not the real money, like most people still believe right now, I think people will have difficulty buying gold.
On the other hand, if people think gold is the money, like most of us in this forum think, and most people in the human history thought, then it doesn't matter how "expensive" gold is, because gold will be used to measure the price of all products. Gold will not be expensive nor cheap, just like one meter is not "long" or "short".
<< <i>Is anyone worried about the rise in gold/silver?
I'm a whole lot more worried about why gold and silver are rising than I am about the fact that they are. And evidently, Standard & Poor's agrees with me.
Gold/silver has a value as long as others can afford to buy it, and as long as others value it.
In my opinion, that isn't why gold & silver have value. I could list a hundred reasons, but I don't want to have to put you through a tirade this morning.
is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it?
I'm more worried about the fact that a severe economic crisis means lots of other things before I worry about gold & silver. My owning gold & silver is but a meager attempt to salvage and rescue what I've earned over the course of a lifetime of hard work and would like to preserve if possible.
If the dollar could preserve what I've earned, I'd be 100% in dollars. It's a judgement call. It always is. >>
I went to the ATM this morning and withdrew $300 to take a little day trip in a couple of days and be able to afford to buy the gas. The 15 $20 bills came rolling out as desired -- all crisp, consecutive bills, and you could smell the ink which was not yet dry. Now that scares the $()_$%% out of me.
<< <i>Well, here's a point for conversation: with the exception of the finest gold leaf on chocolate and other fancy desserts, you can't eat gold. >>
Cant eat cash, stocks, bonds, or real estate either. So if you had an excess of dollars that you did not believe in and didnt want to hold for fear of inflation....where would you park them? The world seems to think gold/silver is a good place.
<< <i>
I went to the ATM this morning and withdrew $300 to take a little day trip in a couple of days and be able to afford to buy the gas. The 15 $20 bills came rolling out as desired -- all crisp, consecutive bills, and you could smell the ink which was not yet dry. Now that scares the $()_$%% out of me. >>
Yes, I heard about it. It is not an ATM; It is the latest innovation: Automatic Printing Machine (APM).
<< <i>I think this will happen, perhaps suddenly (as a means to avert a currency crisis), and sooner than we might think. If $ 2 trillion were traded for half of US gold, that would imply a gold price somewhat above $ 10,000 per ounce. Probably a new currency regime would be implemented balancing the dollar, a new Chinese currency, and gold. >>
I don't know how I missed this post.
If and when things get bad they'll get far worse very suddenly. It will require extreme
measures such as a new currency to solve the problem. Actually we've been living on
borrowed time since 1979.
<< <i>
<< <i>
But is there any worry that in a severe economic crisis gold/silver would no longer be valuable because no one will or want to own it? >>
I think it depends on how people view gold/silver when the crisis comes.
If people still view gold/silver as not the real money, like most people still believe right now, I think people will have difficulty buying gold.
On the other hand, if people think gold is the money, like most of us in this forum think, and most people in the human history thought, then it doesn't matter how "expensive" gold is, because gold will be used to measure the price of all products. Gold will not be expensive nor cheap, just like one meter is not "long" or "short". >>
Some of these questions are moot.
If currency were to actually collapse then people would be trading commodities
and gold would still be the easiest and most divisible commodity to trade. It
would be obvious to all observers that gold was currency.
However a modern economy can't support 6 1/2 bollion souls using barter so
even this question might be moot.
The powers that be have to institute something pretty fast. Once the seed crop
is eaten there's no going back.
<< <i>
The powers that be have to institute something pretty fast. Once the seed crop
is eaten there's no going back. >>
that is sorta biblical.