Originally Posted by FyredUp
If there is a total economic collapse what is the guarantee that gold or silver will be worth anything at all? Frankly, if the monetary system is completely gone you couldn't buy 5 pounds of potatoes from me for less than 5 pounds of gold, or 10 pounds of silver.
I can't eat the gold or silver, can't heat my house with it, or gather or hunt food with it. Unless the person(s) you wish to do business with feel it has value it will not be as valuable as trading food, clothing or ammunition to get what you need.
I don't intend to eat
silver or gold - would defeat the purpose. Precious metals are for other purposes as we should already be prepared in other areas. But if you want to eat
silver and gold, then be my guest. We know that people have used precious metals when currencies have collapsed. In the past we have seen people use precious metals to buy real estate during times of economic distress (i.e. Weimar Republic, Indonesia and Thailand - Asia Contagion, etc.).
As for food this is the reason we stockpile a multi-year supply of nonperishable food and basic necessities. This is also why we remain debt-free and never take out loans. This is why we stockpile a lifetime of firearms and ammunition (in my case perhaps a couple lifetimes worth). This is why we buy fertile rural land. Some people just don't get the point of preparation. Obviously the use of silver and gold as the ultimate money through 6,000 years of human history hasn't and won't likely ever change.
I have often found that those who complain and criticize those who stockpile precious metals, food, goods, guns, ammo, etc. usually are those who haven't made any preps or taken any precautions. Many count on the government to save them (anyone remember Katrina?). Preparation and survival is a multi-faceted approach of taking precautions in all areas of existence (including financial).
On a side note, I made enough on silver and gold that I sold some bullion to further finance the purphase of a new truck (GMC Sierra), additional stockpiles of non-perishable foods, firearms and ammo. I have quintupled my money in the last decade and still have silver and gold as part of my investment portfolio. Anyone think that the US dollar will increase in purchasing power? Especially now as the Federal Reserve is creating $Trillions out of thin air? When the banks finally decide to release that money into the market place we will likely see an inflation tsunami.