Crash Course - every things going to change

[Dharmaeye]

Crash Course - every things going to change
http://www.chrismartenson.com/crashcourse

[Big Frank]

One thing that I wonder about with the economy is the price of gold. I've seen it more than double until it's almost the same as platinum and wonder if some day it will crash. I didn't invest when it was low and can't afford to know but a lot of other people have gold as an investment. The other 3 precious metals don't worry me me like gold does but I still don't know if I should keep any of it.

[tombogan03884]

One thing that I wonder about with the economy is the price of gold. I've seen it more than double until it's almost the same as platinum and wonder if some day it will crash. I didn't invest when it was low and can't afford to know but a lot of other people have gold as an investment. The other 3 precious metals don't worry me me like gold does but I still don't know if I should keep any of it.

When everything else crashes there will not be any investment capital to pay for mining more gold ,so if anything the value will go up. The only thing that can burst the gold bubble is if the credit bubble does not burst, the economy grows at a higher than projected rate and Obama really is the second coming.

[2HOW]

Gold will always be used as money, .

[Dharmaeye]

We have been spoiled by the history of the dollar. The history of currencies tells you that governments always destroy currency eventually.

[Sponsor]

[Rastus]

Buy something recognizable, buy silver.  Invest smaller amounts regularly, buy silver.  1964 and earlier US coins (dime, quarter, 50 cent piece, dollar) are with limited exception 90% silver.  A silver dollar has the same amount of silver in it as 10 dimes or 4 quarters or two fifty cent pieces.  Of 1964 and earlier, $1,000 face value in U.S. coins contained 720 ounces of silver. 

You can do the math, but I would price the coin value at what I'm paying on or around bullion price.  At bullion price, a 1964 and earlier coin is worth a face value multiple determined by mulitplying 0.72 per ounce bullion price.  For instance, at $10/ounce of silver the multiple is 0.72 x 10 equals 7.2; then for a dime it's silver is worth 72 cents, for a silver dollar it has silver worth $7.20 in it, and so on.

Everyone recognizes old US coins.  Bring a gold piece in and who can be sure it is what you say it is...who is going to assay it, where, how quickly, etc. etc., because that is a lot of value to lose for something that is not gold and traded as gold.  Also, where are you going to get change for a large piece of gold when you buy groceries and such?  If a currency collapses...wait a couple of months and everyone will begin to realize there is value in silver and gold....don't squander it early if you have it.

Also, other currencies in the past (see Europe, South America, etc.) that have been inflated in the past all get called in for a new currency...mostly with a reverse value.  For instance, after WWII in Austria (I think) the government announced on a Monday or Tuesday that each man, woman and child could redeem 1,200 old marks 10:1 for 120 new marks on Thursday at the bank...so on Thursday only, at banks only, each person could redeem up to the maximum of 1,200 old marks for the 120 new marks (printed on one side) and the old marks were worthless at midnight.  Had a million marks in the bank you say....too bad, 1,200 for 120 per person only.  A sneaky way to tax you, eh?

Also...coins are usually not affected and go over at par...that is 1 mark of coins then was worth the new mark the next day, it escaped the devaluation.  Coins are too expensive to collect and remake...paper money and numbers in accounts are another thing all together.  And, besides, the % of total currency and value out there was a very small % in coinage and made no difference.  Point being made...save your change.

So, if you are concerned about the US currency and economic future in the light of a potential collapse, then this may be helpful information for you.  If you think acquiring precious metals are foolishness, then I'm OK with that too...to each his own.

[runstowin]

When everything else crashes there will not be any investment capital to pay for mining more gold ,so if anything the value will go up. The only thing that can burst the gold bubble is if the credit bubble does not burst, the economy grows at a higher than projected rate and Obama really is the second coming.

Good point. The Big Kahuna is not going to save us, what will happen is that the new pres and congress will do their dead level best to make things worse. When the fake money, numbering in the trillions, makes it way through the economy we will all be at the effect of a horrendous loss of purchasing power of federal reserve notes. Much higher prices, coupled with much higher unemployment, will equal disaster for millions of Americans. However let not your heart be troubled, the wealthy people we the people are bailing out will do just fine.

[tombogan03884]

Good point. The Big Kahuna is not going to save us, what will happen is that the new pres and congress will do their dead level best to make things worse. When the fake money, numbering in the trillions, makes it way through the economy we will all be at the effect of a horrendous loss of purchasing power of federal reserve notes. Much higher prices, coupled with much higher unemployment, will equal disaster for millions of Americans. However let not your heart be troubled, the wealthy people we the people are bailing out will do just fine.

They may not be so well off, If their stocks and bonds become worthless and they can't sell property, they could be worse off than some one who starts with nothing, as they will be taxed on what they can't get rid of with out the ability to pay and they do not have the skills to survive on their own.

[runstowin]

From what I understand the truly elite already have their refuges set up, we are behind the curve, they are ahead.

[Big Frank]

I had some platinum coins and silver too. An American Eagle silver dollar is 1 troy ounce of .999 fine silver, 12 coins to a pound. I think I only paid 7 or 8 dollars for each coin I bought in 2000. A sealed Mint roll of 20 is 1-1/4 pounds and was about $150, but a roll of 2008 silver dollars is selling for $350. If everyone bought a roll of them back then and waited it would be worth about $200 more now. If you kept the same $150 in the bank maybe it would earn $12 interest. Too bad I cashed in half of everything to use for house payments and such. That was supposed to be my retirement fund and I planned on adding to it not spending it. At least my wife didn't know about my coins when we got divorced.