A few thoughts on the state of things

[Tartar Horde]

Economic collapse is my reason for prepping as I believe it is the most pressing and likely scenario. I am not concerned or worried about other scenarios like asteroid or comet strike or even worldwide pandemics because if any asteroid or comet hits and it is big enough all the preparations in the world will not save you. I look at pandemics the same way. If the virus and or Bacteria is serious enough the only thing that will save you is the 50/50 chance you might be immune to it.
The discussion regarding PM's is interesting and always a popular topic amongst preppers. PM's to me represent real tangible wealth and with the constant debasement of our currency and all currencies due to QE there is a reason why PM's like Gold and Silver are seen as safe havens because people are losing faith in Fiat currencies. Gold and silver have been recognized as "currency" for all civilised existence and have always been reverted to in times of crisis. It is also very true that all the Gold and Silver in the world will not buy you a can of food if the person won't sell it, but the reality is there will always be someone who will sell to you.
I also look at it this way if I have my money in the Bank it is earning me nothing due to the interest rate, and also the fact that the money can be taken away from you like in Cyprus

[Scythe13]

(9 April 2013, 12:38)Skean Dhude Wrote: A lot of these investements go very poorly for non financial people who are always last in and get holding the can.

That's the tricky part. Knowing when to trade them in.

(9 April 2013, 12:43)Sardo_Numpsa Wrote: I wouldn't recommend holding PM's (as you guys say) as an investment.

How come?

[Luci_ferson]

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.

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an oz of gold will be worth about the same as a loaf of bread.

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and that's if your lucky, cos id keep my bread.

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your tin opener will probably have more tradeable value than your gold coin

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and that's only of value until theres no more tins to be found anywhere

[Sardo_Numpsa]

(9 April 2013, 13:40)Scythe13 Wrote: How come?

Price is too volatile, too many factors at play. If you don't have much cash to spare it could get very difficult physiologically to sit on your hands through the swings and possible crash in price. I don't think it's a given it will keep going up indefinitely

That being said if the price crashes I will buying

[Luci_ferson]

if the price crashes , its possibly cos the whole economic world just did too.

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suddenly food becomes worth more per oz than even einsteinium

[Sardo_Numpsa]

(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.

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an oz of gold will be worth about the same as a loaf of bread.

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and that's if your lucky, cos id keep my bread.

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your tin opener will probably have more tradeable value than your gold coin

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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.

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(9 April 2013, 13:48)Luci_ferson Wrote: if the price crashes , its possibly cos the whole economic world just did too.

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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.

[Scythe13]

(9 April 2013, 13:47)Sardo_Numpsa Wrote:

(9 April 2013, 13:40)Scythe13 Wrote: How come?

Price is too volatile, too many factors at play. If you don't have much cash to spare it could get very difficult physiologically to sit on your hands through the swings and possible crash in price. I don't think it's a given it will keep going up indefinitely

That being said if the price crashes I will buying

The mine in Mongolia is a major factor, but it's not hugely Gold/Silver focused.

I'd say, come 2016, silver will have topped out, the basic market's functions will be flailing, and as a result, people will start to head into PM's. That'll be when I cash out and sell.

There is still a load of instability available for the markets, at the moment. People are feeling relatively bullish, and optimistic, which suggests that the 6 month tail from market to economy is either misguided, or we're heading into a jobless recovery. I'm going with the former. But that mini optimism does make me think that the market still have a way to go until it hits rock bottom, and that SHOULD be when PM's reach their max, a few months later.

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(9 April 2013, 13:51)Sardo_Numpsa Wrote: 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.

They work, in most basic terms, as opposites.

Stock market is for when people are feeling good, so that's when that increases. Then the PM's are for when people feel bad, and that's when that increases. Money moves from one side of the exchange to the other.

That's the SIMPLEST (vastly oversimplified) version.

[Luci_ferson]

if I was only expecting a partial temporary collapse id be getting my hands on as much gold as possible

as soon as we return to a monetary system , gold would instantly step back in.

but im not expecting that.
im expecting total collapse.
chaos
be years before gold had any value to a human again.
id be dead long before them more than likely.
could be handy to have some set aside for the kids. as its likely to be back up and running by the time they have kids of their own.

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and if it never did repair, atleast id have a nice pair of earings to give the OH each year lol

[Scythe13]

I think people are forgetting the part where they sell before the collapse and reap the benefits of buying early!!!

[Luci_ferson]

I guess theres always gonna be some that invest and some that don't.

all we can really do is hope the ones that do invest pull there investments in time.
At end of day the collapse might not even happen.
anything weird could happen that would push the great reset button.
probably a war its usually good for an economy, and theyre easily orchestrated.
enforced enlistment Is a great way for getting the unemployment figures down suddenly.

your investments could surprise everyone and actually turn out earning a lot.

that's the beuty of investing, its the fun of the gamble, you never really know what the market is gonna do for sure.

in 10 years time we could all still be prepping, and you lot are sat on a goldmine so to speak.

I don't see it happening, but stranger things have happened and it does look like Englands pms cant wait to get stuck into the korea situation.
caMoron already jumped on it to promote his tridents again.

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i got to say , im tempted to invest in the yen

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NK could see camerons investment in tridents as a strategical manoeuvre against them.
NK seems to see theats from just about anything according to western media.

but that could also be camerons plan
it would be handy just before elections.