(9 April 2013, 13:43)Luci_ferson Wrote: even stones have been used in currency.
currency hasn't always been based on gold.
long before gold became currency, men traded .
they traded in goods.
some used markers of credit to barter with amongst eachother.
sometimes these would be recorded on a simple stick that was carved.
the problem with gold and silver and jewels etc. is they are only worth what the person with the real necessary good believes its worth.
in shtf situation. and people are starving, there is going to be many sheeple trying to trade their gold just to get food.
the market will be flooded with people trying to buy food but food will be scarce so the price of food will be high.
the value of gold will be low.
in the north east everyone is already selling all their gold just to survive daily life.
All ours went at the beginning of 2012. (except one)
im more likely to ask for your help to build a wall, in exchange for a bowl of whatever im eating. than to swap you any food for your gold, cos I know il be stuck with the gold as there is no food to buy.
an oz of gold will be worth about the same as a loaf of bread.
and that's if your lucky, cos id keep my bread.
your tin opener will probably have more tradeable value than your gold coin
and that's only of value until theres no more tins to be found anywhere
A store of wealth/medium of exchange has to be rare to have value. Gold and silver fit the bill very nicely.
Currency revolutionised trade/barter as it overcame the coincidence of wants problem.
(9 April 2013, 13:48)Luci_ferson Wrote: if the price crashes , its possibly cos the whole economic world just did too.
suddenly food becomes worth more per oz than even einsteinium
Actually the price of gold is negatively correlated with the health of the global economy.
Watch what the S&P is doing on any given day then look at the price of gold, they don't often move in the same direction.
Search
Calendar
Help
