Jun 182010

If you are in the habit of reading extensively about the economy you will have, inevitably, read about gold. This week gold hit record highs and is approaching $1300 per ounce. Discussions of gold (and silver) have hit the mainstream media as governments and individuals get on the gold bandwagon seeing it as a hedge against inflation or a safe haven in the event of currency failure.

Survivalists  believe that when TSHTF gold and silver bullion will be necessary for survival. They base their decision to buy gold on the fact that, historically, gold and silver have had value. Websites like Goldseek and Jim Sinclair provide a constant stream of articles and analysis on gold and silver.

Gold and silver bullion are easy to buy at coin and pawn shops, via the internet or at mints like Northwest Territorial Mint. Likewise, it’s easy to take your bullion to a coin shop and sell it for cash. But bullion is a hassle to store and protect and many people gravitate to funds like the Canadian Central Fund (CEF) or gold mining stocks.

Like any other subject the information about gold is often confusing and contradictory. Some predict it will go to $5000. Others believe it’s just another bubble. Clearly, gold is in the news and worth some study as it could be useful in a transition situation.


  5 Responses to “Too Late for Gold?”

  1. As I understand it, gold is simply a place to store wealth and have it maintain it’s purchasing value. It’s not something to expect to spend for groceries, right? Seems like gold would just be another rock for day to day kinds of things. Someone has to have money to trade for gold to be able to use it, I’d expect.

  2. Gold has been money and could be money again. You would trade gold for goods. Coins used to be made of gold and spent. Fiat money doesn’t have an intrinsic value. It used to be backed with gold until the Nixon years. We all have to agree fiat currency has value. Inflation means we all agree it has less value. Hyperinflation means we agree fiat currency has no value.

  3. At its current price it will be hard to barter with solid gold. If it comes down to that your way better off trading bags of 22 ammo for eggs.
    Currency needs to be backed by a gold standard to keep it in check and give it value. The idea worked until the early 70’s and now we have printing presses working 24/7 keeping the system afloat. All kinds of printing presses. z

  4. I think Catherine Austin Fitts brings up a good point….use bag silver for exchange, or quarter oz gold coins….I like the bags of silver coin…legal tender….90% silver…..dimes, quarters, half dollars….lots of options for exchange……but one can’t argue with ammo….it’s all good….


  5. I highly recommend Terry Pratchett’s book “Making Money” — a ficticious and funny look at monetary policy. Only for those those who appreciate irony, thoughtfulness and silliness in equal measure, though.

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