“You can’t eat Gold”

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  • Tue, Nov 15, 2011 - 06:42pm

    #1

    Aaron M

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    “You can’t eat Gold”

We’ve probably all heard this tired old cliche – you can’t eat Gold.

There are a significant number of opinions out there that cast Gold as both a useless waste of money, and an invaluable method of asset protection. There are anecdotes about trading in metals in SHTF, and there are situations where it’s simply made a person a target during periods of lawlessness.

It’s my opinion that the truth is somewhere down the middle – it’s wise to take care of necessities first, but having some measure of asset protection only makes sense. For those of us who’re not wealthy, and can’t afford to do both, what’s your exposure?
Do you still try and buy Gold, or is it a luxury that is less important than food, or other necessities for survival?
What would you purchase instead of Gold to hold value and perhaps provide utility?
Or is Gold worth the stretch in terms of potential for gains?

I’ve been thinking about this quite a bit lately, and would love to hear the communities opinions on Gold, and it’s place in practical preparations.
Cheers,

Aaron

  • Tue, Nov 15, 2011 - 08:56pm

    #2
    Peak Prosperity Admin

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    gold vs other forms of asset protection

 

Aaron,

I’m looking forward to reading the comments of others to your question.  I’m very new here, and in that initial stage of still being quite blown away by all of this, so I have little to offer to the conversation at this point.  I’m thinking, though, that good, rich land and a small home equipped to use a variety of energy sources for heat, etc. within a supportive, transition-type community would be the most valuable asset.  How one would pay taxes, buy necessities, etc. escapes me, though, if the remaining dregs of ones’ carefully and painfully-saved 401 K  or bank account becomes worthless.

-Jenny

  • Tue, Nov 15, 2011 - 09:25pm

    #3
    Peak Prosperity Admin

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    Gold: Here’s what I think….

 Aaron – You asked for opinions, and mine is worth exactly what you paid for it. I’m probably one of the LEAST investment-savvy guy on the board. But, I do own some physical gold (and silver) so I wanted to chime in. 

I cashed out one of two 401k’s a couple of years ago and bought gold at roughly 900-1000/oz. and silver at about 20/oz. I’m glad I did and I don’t regret the penalty/tax implications one bit. I’m also glad I didn’t cash out BOTH 401K’s and buy even more. Since my initial purchase, I have been able to scrounge together enough cash to buy 1-3 oz of silver at a time, but I don’t have the resources to buy more gold at this time. 

If gold/silver drops as some say it might before the final run-up, I’m going to buy all I can, which may still be only more silver, no gold. At this time, I’m not buying either. It just seems like I’d like to spend my "prepper money" on tools, skills, garden, etc. 

A couple of things make sense to me. One example I’ve heard: Is that in 1900, with one ounce of gold, a man could buy a really nice suit and a pair of shoes. Today, in 2011, with one ounce of gold, a man can buy a really nice suit and a pair of shoes. I’ve heard as an example of why gold is NOT a good investment. But, to me, it seems like the very best reason to own gold. Even if the US dollar does not deteriorate to zero, it’s obvious that the US dollar will not hold the same purchasing power that it has today, which is even less than yesterday. Think about the example above with the price of a loaf of bread in dollars. There’s only one way it’s going to continue to go, as far as I can tell. 

Another thing: I heard this on a podcast I listen to: No matter what the investment is, you HAVE TO KNOW your exit point. I read this little factoid here at cm.com. When the cost of an acre of land is equal to one ounce of gold, I sell and buy land. I’ve had to have "discussions" with my wife: "No, we’re NOT going to sell the gold to take a vacation," "NO, we’re NOT going to sell the gold to buy doo-dads and gadgets." We’re going to hold the gold until later. Much later. 

So, I’ve got my few little coins locked in a lock-box, and if we have to bug-out, the little box goes with us. Anyway, that’s two cents from the peanut gallery. 

  • Tue, Nov 15, 2011 - 09:30pm

    #4
    Peak Prosperity Admin

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    The Alternative to Gold

[quote=Aaron Moyer]

What would you purchase instead of Gold to hold value and perhaps provide utility?

[/quote]

Hey Aaron,

I want to tell you about an alternative investment that has the following benefits:

  1. It is a physical asset that is held in your possession.
  2. It cannot be easily stolen from you.
  3. Depending on several factors, it pays a 4-9% annual return on your investment.
  4. If inflation takes off, your return will automatically adjust itself to outpace inflation.
  5. If a deflationary spiral occurs and you lose your income, this investment will still provide one of the basic neccesities of life.
  6. The government can’t tax any profits from this investment.
  7. The investment insulates you from the games of Wall Street, while still allowing you to profit from certain types of speculation on Wall Street.
  8. If the currency fails, this investment continues to produce something that people will want to trade their gold for (but you may not be so willing to make that trade).
  9. And if you ask nicely, the government may even give you a kick-back on your investment.

Would that be something you would be interested in? What do you think it is?

  • Tue, Nov 15, 2011 - 09:38pm

    #5
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     Getting out of debt?

 Getting out of debt?

  • Tue, Nov 15, 2011 - 09:52pm

    #6
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    silver is da bong

tx_floods, don’t apologize for silver! Silver is da bong!

I look at it this way, when the bomb goes up and it’s all down to nitty gritty, what do I want with a new Italian suit and pair of shoes? But I’ll be able to pay a local clothing-maker and a local boot-maker in silver to make me the work clothes and boots that I will always need.

Silver is much more of a natural currency than gold. Silver is the people’s currency, and I plan on living with the people, with the locals … hell, I already do live with the locals.

I’m old enough to remember when most of the $1 bills that you saw were Silver Ceriticates, meaning you could exchange them for silver dollars if you wanted to. The US monetary system back then was called the Gold Standard, even though you could not hold gold bullion in the USA (until Nixon took the USA off the gold standard), but what people don’t remember or know about is how all the Silver Certificates were systematically eliminated … followed by all Treasury currency bills … to make Federal Reserve bills into the only currency in use, as it is today, more’s the pity.

 

 

That was none other than Captain Sheeple that posed that question, not AO.

 

I think the answer is alterntive energy systems, primarily solar pv.

 

what do I win?

  • Tue, Nov 15, 2011 - 10:25pm

    #7
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    Ao’s Puzzle: Cow Or Goat Or Tree?

[Edit: Thanks, Ready. I edited for correct attribution.]

Captain Sheeple:

Is that a cow or a goat or a tree?

If so, it’ll require mainteannce, harvesting, and storage.

Poet

[quote=JAG]

I want to tell you about an alternative investment that has the following benefits:

  1. It is a physical asset that is held in your possession.
  2. It cannot be easily stolen from you.
  3. Depending on several factors, it pays a 4-9% annual return on your investment.
  4. If inflation takes off, your return will automatically adjust itself to outpace inflation.
  5. If a deflationary spiral occurs and you lose your income, this investment will still provide one of the basic neccesities of life.
  6. The government can’t tax any profits from this investment.
  7. The investment insulates you from the games of Wall Street, while still allowing you to profit from certain types of speculation on Wall Street.
  8. If the currency fails, this investment continues to produce something that people will want to trade their gold for (but you may not be so willing to make that trade).
  9. And if you ask nicely, the government may even give you a kick-back on your investment.

Would that be something you would be interested in? What do you think it is?

[/quote]

  • Tue, Nov 15, 2011 - 10:46pm

    #9
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    Bingo…We have a winner.

[quote=Ready]

I think the answer is alterntive energy systems, primarily solar pv.

what do I win?

[/quote]

Winner! Winner! Chicken Dinner!

(but you have to kill and butcher the chicken)

Though, I think you should be disqualified for profiting from insider information, lol.

You ruin everything Ready. I’m telling Mom!……….MOM….Ready stole my thunder……and he shot a deer with his BB gun!

  • Tue, Nov 15, 2011 - 10:47pm

    #10
    Peak Prosperity Admin

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    gold is a luxury

Aaron asked:

It’s my opinion that the truth is somewhere down the middle – it’s wise to take care of necessities first, but having some measure of asset protection only makes sense. For those of us who’re not wealthy, and can’t afford to do both, what’s your exposure?
Do you still try and buy Gold, or is it a luxury that is less important than food, or other necessities for survival?
What would you purchase instead of Gold to hold value and perhaps provide utility?
Or is Gold worth the stretch in terms of potential for gains?

Gold is a luxury for us plain folks. We have a little silver, enough to pay property taxes, but the bulk of our preps are water, energy and food related.

I cashed out most of my IRA. With that money and a lot of hard work, we’ve put in a huge square foot garden, an airtight woodburning stove, and cooling things such as new screens for the windows and a solar powered attic fan. And eco foil inside the attic, which also keeps the house cooler. We put in a pantry and a small larder, and beefed up security by installing steel-framed steel doors and a fence; also for security we now have firearms and know how to use them. For water we put in leaders and gutters conneted to a system of rain barrels. We put in a sand well – only 65 feet deep but tests potable – which is electric but we have materials to build a torpedo bucket and haul water up manually. We bought canning supplies and have been steadily increasing our skill at that; also, we built and use a solar food dehydrator.

Our next projects are two screen doors and non-electric venting to the bathrooms (probably solar tubes with a roof vent as these rooms have no natural light).

Yeah, we plan to tough it out right here if we can. Gold is nowhere near as important as being able to supplement our food, save on untilities (and be ready to live off grid in a worst-case scenario), and have fresh water for us an our neighors.

 

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