Thread: Why Use Gold As Money?

Chinese Appetite For Gold Continues Unabated.

Global Bond Rout Deepens -- US Authorities Losing Control Over "Events"

Although gold is often a good investment, I personally disagree with using it as money.

Gold is too scarce to be used exclusively as money. Besides, gold's value comes from the same place that paper money's value does - demand, because we recognize it as valuable.

Fiat currency is a great invention; the fact that it is misused in a way that creates problems is not an argument against it any more than it is an argument against firearms. The way it SHOULD be used is that it should be issued by a government controlled by the people, at no profit. (minimal interest)

Just my point of view, I'm sure many will disagree.

Use your gold and money to buy seeds, a water filter, knife, matches, flashlight and perhaps a rod&reel, that is the real gold (preparedness)

Gold and silver are money to save, paper is the money to spend.

I bought one of these on Ebay for $5 or less. Yes, they are real...$100 TRILLION dollar notes from Zimbabwe

My faith is in the Euro and Swiss Franc.

A picture is worth a thousand words.



$GOLD - SharpCharts Workbench - StockCharts.com

I also think you need seeds, land, and the ability to feed yourself 1st. That being said I'm more of a silver man when it comes to hard money.

^noted

If you are planning to invest in precious metals, split your investment between gold and silver. I made a tidy profit on silver last year. Both gold and silver values went up over the last year, but percentage wise silver was the run away leader (about 27% for Au and about 115% for Ag). I expect the next 365 days to be similar.

Originally Posted by Silver Stallion

I bought one of these on Ebay for $5 or less. Yes, they are real...$100 TRILLION dollar notes from Zimbabwe

Awesome! I'm going to see if I can get one too... as a little symbol!

Originally Posted by Silver Stallion

Gold and silver are money to save, paper is the money to spend.

I bought one of these on Ebay for $5 or less. Yes, they are real...$100 TRILLION dollar notes from Zimbabwe

Why does that top one look like it has a turd pile on the front... just sayin'

Originally Posted by Sinterklaas

Use your gold and money to buy seeds, a water filter, knife, matches, flashlight and perhaps a rod&reel, that is the real gold (preparedness)

I agree. When things crash, the stores will be ravaged, but what will gold or silver really buy? If there is no water pumped to your area, is someone going to give you water for gold?

I say stock up on the basics.

The price of gold strikes me as elusive. The real price of ownership may be multiples of the stated price. Suppose gold is $1000 an ounce. To get an ounce, you have to pay premiums to the seller, value estimates for the coin if you buy it in that form, shipping costs including insurance, and storage costs whether local or remote. Then when all goes to rack and ruin, you have to use the gold to buy what you need. In this scenario you're like the guy with an antique, hoping to get an auctioneer or pawn shop to give you retail price for your good. Instead, you're lucky to get wholesale value. So you have to pay almost twice going in, and you get about half going out. Plus you have to get your hands on your gold in order to sell it, which would be hard in some cases. Not to mention keeping hold of it: imagine being on a long migration and offering some gangster a gold coin for a bucket of water. "How many gold coins you got, anyway?" Gold is for the super-wealthy, who can afford to store large amounts and keep it well-hidden. Anyway that's my opinion. Seeds, skills, land are better I think. And bullets. Guns. Tools. Much better.

Originally Posted by Silver Stallion

Gold and silver are money to save, paper is the money to spend.

I bought one of these on Ebay for $5 or less. Yes, they are real...$100 TRILLION dollar notes from Zimbabwe

The real question is how soon $100,000,000,000,000 Federal Reserve Notes will trade at par?!

Iconoclast

Originally Posted by Silver Stallion

Gold and silver are money to save, paper is the money to spend.

I bought one of these on Ebay for $5 or less. Yes, they are real...$100 TRILLION dollar notes from Zimbabwe

Bolded comment from SS is a derivation of Gresham's Law. Good one, SS!!

Originally Posted by pilates_fan

The price of gold strikes me as elusive. The real price of ownership may be multiples of the stated price. Suppose gold is $1000 an ounce. To get an ounce, you have to pay premiums to the seller, value estimates for the coin if you buy it in that form, shipping costs including insurance, and storage costs whether local or remote. Then when all goes to rack and ruin, you have to use the gold to buy what you need. In this scenario you're like the guy with an antique, hoping to get an auctioneer or pawn shop to give you retail price for your good. Instead, you're lucky to get wholesale value. So you have to pay almost twice going in, and you get about half going out. Plus you have to get your hands on your gold in order to sell it, which would be hard in some cases. Not to mention keeping hold of it: imagine being on a long migration and offering some gangster a gold coin for a bucket of water. "How many gold coins you got, anyway?" Gold is for the super-wealthy, who can afford to store large amounts and keep it well-hidden. Anyway that's my opinion. Seeds, skills, land are better I think. And bullets. Guns. Tools. Much better.

Thats why most of us are into Silver and it is only part of our essentials at that. As far as gold goes, you can buy small amounts, 10th and 20th coins. Never discount Monetary items, you are going to need it if and when you or any ove us ever establish our society durring a reconstruction process.

Well, well, well, now,,, Manipulation much?
Now this is some funny scheiss, well the joke is on the paper traders and this makes a very good deal for those of us buying and HOLDING the real deal.
Here is why the prices tanked,,, the paper traders got hosed.
Case Closed: CME Hikes Gold, Silver, Copper Margins | ZeroHedge
Read the comments.
CME Raises Gold, Silver, Copper Margin Requirements - WSJ.com

Time to go trade some of your Fiat currency in for some shinney metals.

Oh here is an interesting look on things...
Gonzalo Lira: Forget Gold—What Matters Is Copper