Precious Metals? (Gold and Silver)

[whiskeytangofoxtrot]

I figured this would probably turn political, so I brought it here...

I admit I really do not know much about precious metals, but after thinking about it for a while, I am going to read into it. I've been thinking into getting just a little bit and see what happens.

I'm not sure if I am just paranoid, or if I am actually using my head...

What is your take on the idea of collecting a small amount?

 

[Steelman]

Gold prices closed today at $871/oz. Compared to $300/oz in 1998. The fear of the devaluation of our currency has some folks in a panic.

Gold spiked in 10/2006 and continues to rise at a time where the stock market is unstable. Conventional wisdom says to buy low and sell high. Right now stocks and the real estate market are "down".

I personally wouldn't consider gold until $500/oz. Not that I have the cash to be investing right now anyways.

YMMV

 

[singlestacksig]

gold is at a history high wave right now.. not a good time to be buying it..
great if you already have it..
you might buy in @ $800 and it could fall to $500 ....

 

[CarmelHP]

When gold was hovering around $300 and silver around $4 I was telling people to buy, it was a steal. Now, unless the have some money to use as a smal inflation hedge, I would hold off.

 

[PapaScout]

You posted this in the Survival forum so I assume you are thinking about precious metals to use as currency when things go South? Might I suggest buying alcohol and ammunition instead? Commodities such as this will be (IMHO) much more valuable than gold in the event of a total collapse.

 

[epsylum]

You posted this in the Survival forum so I assume you are thinking about precious metals to use as currency when things go South? Might I suggest buying alcohol and ammunition instead? Commodities such as this will be (IMHO) much more valuable than gold in the event of a total collapse.

This may or may not be what the OP was thinking about, but all I have to say to anyone thinking about using precious metals as barter in the time of a societal collapse is "you can't eat gold".

Tradeable commodities when S hits the F:
Clean water (probably the number one thing that will be wanted)
Food
Clothing and blankets
Guns & and ammo and other possible tools to obtain food and/or defend one's self.
Shelter (tarps and paracord)

 

[whiskeytangofoxtrot]

I was actually aiming for the political thread, somehow I was retarded for a moment...

 

[CarmelHP]

Never use guns and ammo for barter. They may come back at you at high velocity.

 

[Disposable Heart]

I only have 5 pure silver dollars. That is the extent of my metal investment, other than ammo. If the S does hit the F, then I guess I could use one like Two Face and keep the rest in case I lose a few....

I agree that the only tradeable commodities would be exactly that, commodities. Food, water, technology (if it gets really bad), stuff like that. But also consider the entity that you are trading with: If you are trading with a farmer, then they probably want hard goods for food. But a destabilized economic system will not have me scrambling for cover at my nearest scrap yard, I will be trading with folks that have food. My store of two cases of rum should cover me for a while on food (hopefully).

 

[jeremy]

Uhhhh DH,
As much as I like Rum, I have corn. I am sure of a number of farmers up here that have at least an "idea" on how to get grandpa's still running. So I'll not be trading with you, at least not in rum anyway.

You guys are on a good train of thought. In all the turd world countries I have "vacationed" in. It was all about what hard commodities I had that you needed. Food, water, tech, and SKILLS. Start learning a skill set that you can trade with. Tech skills are a not bad start, but you might want to look into acquiring something a little more basic.

 

[Disposable Heart]

Uhhhh DH,
As much as I like Rum, I have corn. I am sure of a number of farmers up here that have at least an "idea" on how to get grandpa's still running. So I'll not be trading with you, at least not in rum anyway.

You guys are on a good train of thought. In all the turd world countries I have "vacationed" in. It was all about what hard commodities I had that you needed. Food, water, tech, and SKILLS. Start learning a skill set that you can trade with. Tech skills are a not bad start, but you might want to look into acquiring something a little more basic.

Naw, naw. I live in the city, so I needed a universal trading commodity. I trade preserved smokes and rum (appealing to people's immediant wants) in urban areas. The only thing I would trade with a farmer is my back and time.

 

[jeremy]

LOL....

 

[jeremy]

Coffee thought the nose..... hot it hurts......

 

[Disposable Heart]

BTW: My neighbor has an ATF approved still and always makes stuff for the "winter months". My favorite is the fall stuff he makes: He needs alot, but he burns his leaves and the shine picks up a burnt leaf smell (he adds wood, but lots and lots of leaves). Great treat for all the senses. But, a prime example how skills and some technology will make him a great success in the neighborhood in case of SHTF. Alcohol has many uses, other than just drinking. It can be used for medical purposes (if made correctly), fuel, low grade coolant, etc.... just depending on what he throws in and for how long.

If I only knew how to turn and ream brass and make gun cotton... Make my own shells (.50 McCollough!)

 

[epsylum]

Never use guns and ammo for barter. They may come back at you at high velocity.

Depends on who you are trading with and what kind of guns/ammo you are trading. I would never trade away my AR, AK, or Saiga. Those would be for me. An old C&R rifle or two, maybe.

 

[singlestacksig]

If I only knew how to turn and ream brass and make gun cotton... Make my own shells (.50 McCollough!)

How to make gun cotton

don't try at home..

 

[yodavater]

Never use guns and ammo for barter. They may come back at you at high velocity.

Now there's a good point. Precious metals as an investment? Probably not a great idea right now, but who knows? As barter? I think that could be a good idea, especially if you acquire some small denomination 90% silver US coins which can be easily bartered. There will be some things (like medicine and health care) that you can't stockpile. And as far as using consumables for barter, well that's a two edge sword. True, if things become extremely desperate, food will be worth it's weight in gold. And of course, the person you're trading with might not like what you have. But then there may be a time when things are not quite as desperate as that, and precious metals may be a great hedge against runaway inflation and/or a worthless currency. It's impossible to predict which situation we'll be in, or for how long, so my advice is to diversify your stash.

 

[CarmelHP]

How to make gun cotton

don't try at home..

Can't you just buy a couple of kegs of smokeless powder?

 

[rhino]

If someone has some money to invest RIGHT NOW, I think their best bets would be things like:

nonperishable food
ammo
sturdy shoes/boots
sturdy, comfortable clothing for all weather conditions
a well
a big LP tank
a big LP-powered generator wired into your house properly
a sound-proofed enclosure for the generator
alkaline and lithium batteries
rechargeable batteries and a solar charger
solar panels and an inverter
toilet paper and baby wipes
a couple of years' worth of any meds you need
a ham radio license and a nice ham setup for home plus some mobile units
etc.

 

[quiggly]

Precious metals to hit are the Copper Brass and Lead varieties.