Reply #13: I suppose [View All]

[Mira]

the answer lies in what kind of trouble there is.
If there is a complete collapse of everything and we are in basic survival mode and no food is available and all commerce stops your gold is also useless.

Then a big dog or many (I can't advocate guns) land, fences, seeds, are all that may pull you through.
Like Dixiegrrrrl says.

But if you have your gold, and need money, then the gold you have stashed may bring you more dollars when you cash it in than you paid for it.
Which means with the dollar going down your gold has gone up.
You bought it for a thousand, and get 15oo, now even against a falling dollar that's solid interest.

Europeans, individuals I'm talking about, are tempted to sell because they could get a substantial amount of Euros more right now than they paid, because the Euro is so weak. If they need money for buying stuff, they might want to cash in their profits, and pay down debt if they are smart, or take a cruise if they aren't.

:)
To your Krugerrand question, if the common currency has failed, then it's back to HOW BAD are things?
If there are no banks, no stores, there will still be bartering going on. Your gold piece might get you something you need in exchange.
My Dad traded a large sack of potatoes and 2 pounds of butter for an old piano that is still in our family in 1943.

That's why I like quarter ounces better. Or silver.

I also have a lot of single dollar bills, in case of a bad storm disruption for instance.
I've seen it happen that a single store was open after a bad electrical storm, and if you wanted change for your 20 they just did not have it,
but you needed the milk.....

I would not trust the gold holding houses in a collapse.
That's when I would like my stuff close by.
It depends on what eventuality you want to prepare for.
And it depends on what you personally think the possibilities are you want to guard against.
And as far as gold goes, it depends on what you personally think the trend is. Up or down.
One never knows, it's a crap shoot.
I believe the trend is up because of all the other factors.

I hope this helps.

I just re - read the books:
"The second after" and "Lucifer's hammer".
Great stories, but they will scare the bejeesus out of you and get you thinking about what it could be like in a total physical collapse.