Precious Metals - Intrinsic Value recognized for centuries

[SpunkyDoodle]

I found this video interesting.

I have met people like this, and they do not understand that this will increase in price as paper money decreases.

Some people do not understand, and others have different opinions. What do you think?

 

[Tull]

Only that which sustains life will have value in the coming tribulations,you cannot eat,drink or wear gold silver etc,the infrastructure of commerce will come to a standstill and globalization will have done its work as well as the destruction of the American manufacturing capabilities....in short there will be nothing to buy with your precious metals after supplies are eliminated

 

[cannot be known]

But fiat currency is (typically) more stable, durable, and tightly-regulated than even metals. It's stability is still subject to the skill of the central bankers who manage that currency - and it's quite possible for them to royally screw things up, but that's less likely to happen than having the supply manipulated by commodity traders, mine owners, or accidents and natural disasters.

history does not back this up, on average all fiat currency goes through some kind of a reset every 30-40 years. in the last 100 years we've had two marked transitions in the value of our "dollar" (1933 and 1971) and many expect it to be devalued by about 30% again sometime in the next 4 years.

1971 dollars would be worth about 8 times today’s dollars. short of land, you don't have a better investment that has withstood the test of time than precious metals. of course, gold is not a SHTF investment (you can't eat it they shout!), with one exception: keep enough on hand to bribe your way out of the country when they close the borders.

 

[SpunkyDoodle]

Gold & Silver have their prices manipulated to show price volatility. Those manipulating prices position themselves to profit from that price volatility.

The true value as compared to Dollars in circulation was recently added to the following page. Note that they are in the bottom-right corner of the page.

http://usdebtclock.org

Values of these precious metals are stable, but not their price in fiat currency. The value is as compared to other commodities, not to a particular currency.

When food and other necessities become difficult to acquire, the first thing is that the price goes up. Typically, the value of the fiat currency goes down at the same time, and the important things are VERY EXPENSIVE. This typically happens well before there being Nothing to buy with what you have saved.

I remember a scene from "It's a Wonderful Life" where the main character just happened to possess a significant amount of the fiat currency at a time when the bank failed. He was able to essentially save the town from ruin (complete ownership by a corrupt entity) and made a significant difference in the lives of the people. Even that paper had some value in bad times.

I like land, etc., as an investment, but that has its own problems. Prices there are volatile, and associated taxes are attached to the ownership of land. Great lands are often sold off (or partially deeded to the taxing authority) to settle tax debt. Huge lands end up being much smaller because of this, and may eventually be completely removed from the hands of the owners.

 

[SpunkyDoodle]

Historically, Silver is priced at a rate 1/16th that of Gold. If that was not manipulated so, it would be about $81 per ounce these days. With little or no real change needed in fundamentals, Silver could easily be 4 1/2 times more than it currently is.

That means the Silver Brick in the Video could be easily worth $8100. Using the price as a ratio of dollars to ounces of Silver, the brick could be worth $95300. That is how much it could jump if bad things happen to our economy, as they will eventually (to some extent!!!)

Presently, the PAPER CURRENCY PRICE determines the price of physical silver. A price jolt will occur when prices begin to be set by physical silver availability - or lack thereof. As the US dollar continues its downward plunge, as is expected, it will take more dollars to buy the equivalent amount of silver.

The more our taxes rise, the more people will seek ways to keep the government out of their pockets. Silver is one of the few remaining alternatives available to AVOID SOME TAXATION.

 

[yeshuaslavejeff]

That is how much it could jump if bad things happen to our economy, as they will eventually (to some extent!!!)

"if" ? !
Ever since it went over $120 per month to rent a house the economy has gotten tremendously worse every year.
The oppression of the poor is artificial and extraordinary and ungodly, unrighteous, evil and wicked and greedy.

 

[SpunkyDoodle]

"if" ? !

Well, I mean those who have trouble with $1200 are living in a cardboard box because it quickly becomes $12000/mo

 

[SpunkyDoodle]

Ever since it went over $120 per month to rent a house the economy has gotten tremendously worse every year...

You know, I expect, that this is the point I am making. When rent was $120, Gold was cheap. Now it is close to the the price of an ounce of Gold to rent that same house. Having some you bought when it was $120 or $240 or $500, you would have the $12000 when rent goes that high. In fact, it will quickly become a situation that allows you to buy that same house with that ounce of Gold. That is the point of the discussion.

I trust you are doing well, and feeling good these days, Jeff.

 

[yeshuaslavejeff]

I have met people like this, and they do not understand that this will increase in price as paper money decreases.

Some people do not understand, and others have different opinions. What do you think?

Happens every day.
People who are offered $100,000 value, 'free', in today's market,
turn it down every day ! (a few do not turn it down, they are rare).
Like the people in the video, they totally cannot believe it is true !
They don't recognize TRUTH at all !

But if someone offers them "a bargain", if they think they're 'getting' something special, even if and thought it costs them a great deal of shame and embarrassment later, or even their life,
they are likely to take it !

 

[elytron]

I don't fully understand the metals market, but when I had some spare cash. I purchased two, ten ounce silver bars. At the time I felt silver prices were low. Not sure why I did it, or if it was a good idea. The two bars are lovely though, very beautiful and shiny. Keep them in a safe place.

 

[faroukfarouk]

This also shows the value of maintaining a healthy mining industry, responsive to market forces.