spatial
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Post by spatial on Jul 31, 2020 20:48:46 GMT 10
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spatial
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Post by spatial on Aug 1, 2020 11:03:03 GMT 10
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Post by Stealth on Aug 1, 2020 15:06:40 GMT 10
I've never understood the idea of buying gold on the stockmarket for a SHTF scenario. If the market collapses, the electronic certificate that you hold is worthless. Try buying food with it or even obtaining the cash that it is 'worth'. Unless you have the physical item in your posession, it is worthless. Profitting off it for now is a different matter and little different from playing the stockmarket. Do people actually do that? I would never buy 'paper gold' whether the markets are doing well or not. Seems far too risky. Like you say, if you're not holding it you don't own it. At least, in my opinion. |
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bug
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Post by bug on Aug 1, 2020 15:30:30 GMT 10
I've never understood the idea of buying gold on the stockmarket for a SHTF scenario. If the market collapses, the electronic certificate that you hold is worthless. Try buying food with it or even obtaining the cash that it is 'worth'. Unless you have the physical item in your posession, it is worthless. Profitting off it for now is a different matter and little different from playing the stockmarket. Do people actually do that? I would never buy 'paper gold' whether the markets are doing well or not. Seems far too risky. Like you say, if you're not holding it you don't own it. At least, in my opinion. Almost all gold traded is 'paper gold'. Same as oil/pork bellies/whatever. |
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captain
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Post by captain on Aug 1, 2020 20:45:22 GMT 10
Do people actually do that? I would never buy 'paper gold' whether the markets are doing well or not. Seems far too risky. Like you say, if you're not holding it you don't own it. At least, in my opinion. Almost all gold traded is 'paper gold'. Same as oil/pork bellies/whatever. I once heard that there is more “paper gold” in the world then there is actual real gold - meaning, many people are getting ripped off as they are thinking they are buying ownership to gold, but they are just buying paper with numbers on it. This doesn’t surprise me but I wonder what would happen if many people tried to “cash” in their so called paper gold by demanding their own gold Would they find out, or is it just a big ponzi system (like everything else seems to be)? |
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bug
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Post by bug on Aug 2, 2020 8:43:37 GMT 10
Almost all gold traded is 'paper gold'. Same as oil/pork bellies/whatever. I once heard that there is more “paper gold” in the world then there is actual real gold - meaning, many people are getting ripped off as they are thinking they are buying ownership to gold, but they are just buying paper with numbers on it. This doesn’t surprise me but I wonder what would happen if many people tried to “cash” in their so called paper gold by demanding their own gold Would they find out, or is it just a big ponzi system (like everything else seems to be)? I don't think you can do that anymore readily than you can demand your barrels of oil be delivered to you. |
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Post by Stealth on Aug 2, 2020 9:53:38 GMT 10
I probably should have qualified my comment with "Do PREPPERS actually do that" lol. I know that most commodities are really sold on a paper-basis. I just was surprised to realise that preppers might actually buy paper gold under the assumption that they would have access to it if they ever decided they wanted to hold it.
I wanted to say 'Surely no one is THAT silly"... But thinking on it there's got to people out there that are. What a worry.
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bug
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Post by bug on Aug 2, 2020 10:05:27 GMT 10
I think there would be preppers that do this. As an income source for every day life it's fine. But it must be assigned zero value in your preps. I have not bought any shares (other than those given to me by my company) for this reason. If you can't hold it and defend it, it is not yours in this scenario. You will have handed your money to someone who will never give it back.
I'm interested what would happen to the value of cash in this scenario. So few people would have much of it on hand that it's value may increase significantly.
On the other hand, the last guy to abandon his post at the mint would likely fill his car with banknotes and flood the area with them.
So who knows really.
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kelabar
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Post by kelabar on Aug 2, 2020 11:31:05 GMT 10
No sillier than saying "I'm OK, I've got cash in the bank!". If you have something in a bank then you have squat.
Or sitting on a heap of cash. At least when it was made out of paper you could wipe your arse or light cigars with it!
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Post by Stealth on Aug 2, 2020 11:44:55 GMT 10
I think cash ultimately is something that we need to have on hand, but I also think that if the dollar bottoms out drastically or even becomes entirely valueless there's only a very short period of time where it will be usable.
I'd expect maybe a week for the news to filter through to more rural areas. Probably get a day or two of use out of cash in areas closer to cities or larger rural centres in a total bottom before everyone knew and wouldn't accept it anymore (or went out of business accepting a valueless dollar). To be honest in my fairly uneducated opinion, cash would probably have a short lifespan if/when the dollar falls apart.
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spatial
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Post by spatial on Aug 6, 2020 21:47:17 GMT 10
Gold price up more than $50 now around USD $2055 an ounce, thins starting to hit peak insanity.
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Post by Stealth on Aug 7, 2020 18:43:02 GMT 10
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cindy
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Post by cindy on Aug 8, 2020 8:54:59 GMT 10
Yes been keeping an eye on it. I'd only ever buy bullion it I could physically have it.
I currently do not hold any.
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Beno
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Post by Beno on Aug 8, 2020 9:34:31 GMT 10
I invest in lead.
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kelabar
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Post by kelabar on Aug 8, 2020 10:15:29 GMT 10
I invest in food.
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cindy
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Post by cindy on Aug 8, 2020 11:59:56 GMT 10
I invest in food, vegie patch, propagation tent, greenhouse etc etc. |
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Post by Stealth on Aug 8, 2020 12:46:46 GMT 10
I invest in all of those... And metals  I don't prep only for disaster. Prepping for retirement is a big part of our efforts because we straight up don't trust pensions etc. to exist. Metals are a part of our preps but they're certainly not the only part  |
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kelabar
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Post by kelabar on Aug 8, 2020 12:49:49 GMT 10
I read an interesting article a while ago. It pointed out that the gold or silver isn't changing, it is the value of the money that is changing. So if prices go up it is because the money is losing value.
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Post by Stealth on Aug 8, 2020 13:19:35 GMT 10
Absolutely true. That's why we use metals not to gain money, but to retain the value of the what we've earned. As the price of gold it's just a reflection of the reality that the value of the dollar is going down. It's definitely not a way to make more money. I'm sort of hoping that we finally find our dream home and purchase it before everything goes too sideways so that we can take advantage of the disparity between the loan amount (ie. cash value) and the price of gold.
We ended up buying gold when the savings rate at banks dropped so low that it didn't keep up with CPI (or just barely did). So that money isn't tied up in a bank account where it's value can be slowly eaten away. That being said, we still have savings in the bank. I won't pretend that doesn't make me uncomfortable but sometimes choices are limited. I'd much rather buy some 'in hand' investments though.
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I don't prep only for disaster. Prepping for retirement is a big part of our efforts because we straight up don't trust pensions etc. to exist. Metals are a part of our preps but they're certainly not the only part