Gold or silver (any precious metal really), how much is it really worth when SHTF?

[Chad3098]

I had a conversation/debate with a friend of mine about the usefulness of gold/silver in a SHTF senario (economic collapse particularly). My standpoint was that it is not really useful, so therefore lacks value to the average person during a crisis. I think bullets, gas, food, things of that nature will have much more value. He was completely against that idea saying that it will being used as tender (gold, silver). We ended up agreeing to disagree on most of it, but I agreed that only years after the SHTF having gold will be useful. I just felt my money is better spent investing in things that has practical use.

I was just wondering what everyone else thought since most of you know more about this than myself.

[Rick]

I tend not to think about it since economic collapse isn't on the radar screen.

[hunter63]

A well balanced prep would involve some sort of long term precious metals....hard to make change?
Now my first line of thought.

I'm thinking that plain old cash would still be excepted to have value in the short term.

Barter supplies would be valuable as well.......

Kinda one of those, "not all your eggs in one basket thing......"

[SARKY]

Rick, I have to ask...... Is anything on your radar screen???

Gold or silver or any other precious metal has real value in a run away/hyper inflation scenario, but not in a SHTF scenario. I've seen some people are buying diamonds. Diamonds are extremely over priced. It is one of the most common gems on the planet and in a hyper inflation scenario they will lose their value. In the beginning of any event the paper dollar will have value, that value will wane in a very short time as inflation accelerates until people recognize that paper money has NO intrinsic value.

[Rick]

Tornadoes, fire, flood, pandemic, someone mentioned asteroid the other day so I tacked that on. Volcanoes, earthquakes, nuclear accident, chemical spill and industrial accident. That's most of the stuff that will REALLY happen around here. All that other hocus pocus is just make believe. Zombies.....pffft.

You guys just don't understand. Nothing has intrinsic value unless two people agree that it does. Gold is the only commodity that the U.S. govenment has actually devalued and yet folks hail it as the pancea. Okay, fine. Send all that dirty useless money to me. If S really HTF intrinsic value will be in what people can eat and drink and shoot. Not in shiny baubles.

[Chad3098]

Tornadoes, fire, flood, pandemic, someone mentioned asteroid the other day so I tacked that on. Volcanoes, earthquakes, nuclear accident, chemical spill and industrial accident. That's most of the stuff that will REALLY happen around here. All that other hocus pocus is just make believe. Zombies.....pffft.

You guys just don't understand. Nothing has intrinsic value unless two people agree that it does. Gold is the only commodity that the U.S. govenment has actually devalued and yet folks hail it as the pancea. Okay, fine. Send all that dirty useless money to me. If S really HTF intrinsic value will be in what people can eat and drink and shoot. Not in shiny baubles.

couldn't agree more. Well, except zombies part.....

[your_comforting_company]

You guys just don't understand. Nothing has intrinsic value unless two people agree that it does. Gold is the only commodity that the U.S. govenment has actually devalued and yet folks hail it as the pancea. Okay, fine. Send all that dirty useless money to me. If S really HTF intrinsic value will be in what people can eat and drink and shoot. Not in shiny baubles.

This is my line of thinking as well. Gold is too soft by itself to make even a sharp edge. Useless really, and not worth anything in barter with me. Iron and steel.. something useful. I don't necessarily agree that economic collapse isn't on the radar. It really wouldn't be that hard to cripple the infrastructure of this greatly divided nation. I say let them have their shiny things. My teeth ain't good enough to chew up diamonds and gold. I think gunpowder and lead is a better investment.

[natertot]

Gold/Silver always has a value of sort no matter what. It's value strictly depends on what a person will pay for it. If you are in a hyperinflation crisis, gold/silver will do you better as a currency then the paper that has since become useless. It will also serve you better if you leave the country to escape the crisis. If you are surrounded by people who are starving, thirsty, and in need of medical care, chances are they will turn down all the G/S you have for a few meals, drinks, shower and a physicians exam.

A recent example, look a Katrina in Southern LA. People with boats were turning down those offering cash for rescue and accepting those who had food, water and blankets.

[Cast-Iron]

I think you're both correct. I've been told the US federal reserve note has an intrinsic value of 4 btu's when lit. In a worldwide SHTF scenario I wouldn't have much use for the paper currency of any nation. With an interruption of industry, the goods you had the foresight to stash would carry more value in a barter system as people would be addressing their immediate needs for survival. As a new norm begins to emerge you would likely see a greater need for a more efficient means of commerce which would then be based on something with traditional intrinsic value like precious metals.

[el-amigo]

Okay, and do you have any forecasts for Europe? We had toxic red mud (AL) and cyanide (CN) spill in our rivers lately.

[Rick]

If you are in a hyperinflation crisis, gold/silver will do you better as a currency then the paper that has since become useless.

Hyperinflation almost always occurs after a war. It doesn't have to be but historically that's been the case. In the U.S. we saw this after the Revolutionary War and again after the Civil War most notably with southern currency and to a lesser degree with U.S. currency. Likewise, numerous countries have suffered hyperinflation and in almost all cases gold and silver were not the trade of choice. Barter typically fills the void of fiat money, which of course is nothing more than a convenient form of barter.

[wholsomback]

Well we don't have to worry to much about useable metals because after they run out of gas just get your solar powered sawsaw and get what you want.On the topic of money,well,in some of the most recent conflicts,clothing ,food,and water were more valuable than anything so investments like cash,gold ,silver and diamonds might help in short term SHTF senarios,the long term will probably be meds,food and other creature comforts that can be traded.Oh and on the topic of bullets,a 22 is probably the best bullets to get because alot can be held in a small area,there report is less noticable to others and they can fill your belly with pot meat.Ya now getting a sparrow with a 7mm might not be prudent and might bring unfiendly zombies to your door.

"snicker"

[Wildthang]

Well we don't have to worry to much about useable metals because after they run out of gas just get your solar powered sawsaw and get what you want.On the topic of money,well,in some of the most recent conflicts,clothing ,food,and water were more valuable than anything so investments like cash,gold ,silver and diamonds might help in short term SHTF senarios,the long term will probably be meds,food and other creature comforts that can be traded.Oh and on the topic of bullets,a 22 is probably the best bullets to get because alot can be held in a small area,there report is less noticable to others and they can fill your belly with pot meat.Ya now getting a sparrow with a 7mm might not be prudent and might bring unfiendly zombies to your door.

"snicker"

Right on bwudda! I absolutely agree! I am saving some money for after the SHTF just to get back into normal financial conditions. But I am also storing plenty of .22 ammo, as well as .223 just for barter. Gold will only be something the rich and secure will be able to use in a total economic collapse, and will be worth nothing to the average surviving family's.
I may keep a certain ammount of gold just to diversify my savings but I am not depending on it whatever to help me survive a disater, or total breakdown of civilization.

[finallyME]

Kinda one of those, "not all your eggs in one basket thing......"

Best advice ever.

[Sparky93]

Good thing to buy as an investment, but in a SHTF scenario scrap steel would be a better thing to have. But gold through history has always had value.... just my 2 cents...

[hunter63]

I guess I just have a logistics problem with precious metals....as portrayed many times, as golds a silver coins, bars etc.......
So you are bugging out and have your "wealth" or emergency funds in... say gold coins, smallest 1/2 ounce worth about $800 bucks (now you have to figure per SHTF value vs today).

Well, it time to stop for fuel, beer and sandwiches (my type of bug out), guy says cash no good, but will take a 1/4 ounce of gold, (All I got in 1/2 ounce) or 4 quarts of booze (you didn't bring any)....dude says no change...take it or leave it....so looking down the barrel of his partners EBR, you pay the guy and move on.....wishing you would have diversified.

Anyone given any thought to the term "value?" dealing with precious metals or gems?

[Rick]

Not so my dear Sparky. Executive Order 6102 confiscated all the gold in the U.S. (except for rare coins) in 1933 at the price of $20.57 an ounce. As soon as the confiscation was complete the government arbitrarily raised the price to $35 an ounce. Buy low sell high or just set your own price.

[Sparky93]

Not so my dear Sparky. Executive Order 6102 confiscated all the gold in the U.S. (except for rare coins) in 1933 at the price of $20.57 an ounce. As soon as the confiscation was complete the government arbitrarily raised the price to $35 an ounce. Buy low sell high or just set your own price.

It was still worth $20.57 lol.... That's not nothing, imagine if you had bought 10 oz. for 350 bucks and passed it down to your family what they would have today....

[Rick]

The point is you had to give it up for a lower price. Then the gov't pushed the price up. It's sort of like them tellin' you that you have to sell your car to them for $100 then they sell it for $1000.00.

[kyratshooter]

It was still worth $20.57 lol.... That's not nothing, imagine if you had bought 10 oz. for 350 bucks and passed it down to your family what they would have today....

Sparky you do not seem to understand.

The government DECLARED the price to be 20.57. It had been $29 when they made the declaration.

As soon as they confiscated all the gold in private hands they DECLARED the price to be $35.

It was illigal for a private citizen to own bullion. I think the fine was $10,000/10 years in prison.

So your gold was not STILL worth $20.57, because you had no gold. You had been forced to sell everything you had at $9 below market, then the government mandated a higher market price for what they had just confiscated.

It was illigal for a citizen to own gold bullion until around 1980.

Yes, they can do this with the stroke of a pen by executive order.